Arab News, Tue, Apr 30, 2024 | Shawwal 21, 1445
IsDB, SFD, Arab Coordination Group join hands to raise $500m for education initiatives
Saudi Arabia:
A global partnership involving the Islamic Development Bank will inject $500
million into educational initiatives across member countries of the Organization
of the Islamic Cooperation.
During the annual meetings and golden jubilee
celebrations of the IsDB, the Arab Coordination Group and the Saudi Fund for
Development also joined The Global Partnership for Education, the Saudi Press
Agency reported.
The Global Partnership for Education is a
multi-stakeholder partnership and funding platform that aims to strengthen
education systems in developing countries.
The amount will be raised by the Smart Finance for
Education Initiative, an innovative financing tool.
Moreover, partners also pledged an additional $350
million to the initiative, including $150 million from the IsDB, $100 million
from the Arab Bank for Economic Development in Africa, and $50 million from The
Islamic Solidarity Fund for Development as well as $50 million from the Global
Partnership for Education.
The initiative aims to enhance access to quality
education in 37 OIC member countries, where 28 million children are without
schooling.
Also at the event, the Islamic Corporation for the
Insurance of Investment and Export Credit, a member of the IsDB concerned with
providing Shariah-compliant insurance services, signed a retakaful agreement for
a percentage of the shares allocated to Indonesia for the benefit of the
country’s Eximbank.
A retakaful agreement is an Islamic reinsurance
contract where takaful operators transfer a portion of their risk to a retakaful
operator in compliance with Shariah principles.
The arrangement aims to provide strategic
expertise and capabilities in the field of retakaful through a quota-sharing
treaty specifically designed to support the launch of the financial
institution’s new export credit takaful program product.
This comes as the business expected to be
insured under this treaty is estimated at a value of $13 million during the year
2024.
During the IsDB annual meetings and jubilee
celebrations, the bank’s president, Mohammed Sulaiman Al-Jasser, confirmed that
the entity has designed a strategy for eco-conscious growth and low carbon
reduction by supporting members to reach the zero-carbon goal.
Al-Jasser also pointed out that 40 of the bank’s
projects are about renewable energy, green projects, and financing climate
action.
He underlined the bank’s focus on green
initiatives and sustainable development sukuk, indicating they are compatible
with the Capital Markets Union standard.
The IsDB’s 2024 annual meetings are being
held under the patronage of King Salman bin Abdulaziz in Riyadh from April 27 -
30.
The annual sessions coincide with IsDB’s golden
jubilee, as the institution celebrates 50 years of promoting economic and social
development in 57 member nations under the slogan “Taking pride in our past,
shaping our future: authenticity, solidarity, and prosperity" reflecting the
bank’s legacy and future goals.