For the first time, the Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank Group (IsDB Group) have signed a Memorandum of Understanding (MOU) to establish a framework for strategic cooperation, including actively seeking to co- finance projects in common areas of operations. The overarching theme of the MOU will be "Mobilizing Financing for Infrastructure: Innovation & Collaboration".
Signed during AIIB’s Third Annual Meeting in Mumbai, the MOU deepens the relationship between the two banks, allowing them to foster collaboration, share information and facilitate knowledge exchanges on development finance, Islamic finance and integrity mechanisms. The MOU will have a strong focus on sustainable infrastructure including development of energy and power, transportation and telecommunications, rural infrastructure water supply and sanitation, environmental protection, urban development and logistics.
"An agreement between our banks is a natural fit because we are both dedicated to development and helping our members promote growth and economic opportunity," said AIIB President Jin Liqun. "We have complementary skill sets and expertise. We believe working together on joint investments and initiatives will strengthen our capacity to deliver on our respective missions and benefit our members."
"We are delighted to strengthen our partnership with AIIB," said IsDB Group President H.E Dr. Bandar M.H. Hajjar. "We have a number of common member countries in Asia and also in Africa and a significant overlap in sectors and financing activities. IsDB Group looks forward to jointly strengthening the effectiveness and sustainability of our banks’ operations and to looking for new ways to stimulate the region’s economic growth together. We strongly believe in the power of innovation, science and technology to stimulate growth and will ensure this is a key area of collaboration for the banks going forward."
This partnership between the two banks is an example of the importance they both place on partnerships and how they are key to their growth in the future.
The MOU creates opportunities for better communication and working relationship between AIIB and IsDB Group. Among other activities, the banks intend to share knowledge and exchange experiences among employees through joint temporary assignments, secondments and training.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. Headquartered in Beijing, we commenced operations in January 2016 and have now grown to 86 approved members from around the world. By investing in sustainable infrastructure and other productive sectors today, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.
About the Islamic Development Bank
The Islamic Development Bank (IsDB) is a multilateral development bank that has been working for over 40 years to improve the lives of the communities it serves by delivering impact at scale.
We bring together 57-member countries across four continents, touching the lives of 1 in 5 of the world’s population. We are one of the world’s largest multilateral development banks, with an annual volume of operations above $10 billion and subscribed capital of $33 billion.
The IsDB is headquartered in Jeddah, Saudi Arabia, with major hubs in Morocco, Malaysia, Kazakhstan and Senegal, and gateway of offices in Egypt, Türkiye, Indonesia, Bangladesh and Nigeria.
Our mission is to equip people to drive their own economic and social progress at scale, putting the infrastructure in place to enable them to fulfil their potential. We build collaborative partnerships between communities and nations, and work towards the UN Sustainable Development Goals, by harnessing the power of science, technology and innovation and fostering ethical and sustainable solutions to the world’s greatest development challenges.
In June this year, the IsDB entered a new stage of growth with a brand refresh, empowering people for a sustainable future by driving innovation, partnerships, Islamic Finance and value chains. Its new phase will see the bank equipping people to drive their own economic and social progress at scale; putting the necessary infrastructure in place to enable them to fulfil their potential; building collaborative partnerships between public and private sectors; and championing the latest science, technology and innovation led solutions to the UN Sustainable Development Goals.
The Islamic Development Bank Group
The IDB Group has evolved from a single entity into a group comprising of five entities: Islamic Development Bank (IsDB), Islamic Research and Training Institute (IRTI), Islamic Corporation for the Development of the Private Sector (ICD), Islamic Corporation for the Insurance of Investment and Export (ICIEC), and International Islamic Trade Finance Corporation (ITFC).