Financing & Business Opportunities Provided by the IDB Group

36th Annual Meeting of the

Islamic Development Bank Group

(Jeddah, Saudi Arabia)

25 Rajab 1432H / 27 June 2011G

Jeddah, Saudi Arabia

h t t p : / / w w w. i s d b . o r g

Financing & Business Opportunities Provided by the IDB Group

The Islamic Development Bank Group Together We Build A Better Future

T h e I s l a m i c D e v e l o p m e n t B a n k G r o u p h t t p : / / w w w . i s d b . o r g Slide 2

معاً نبني مستقبالً أفضل TOGETHER WE BUILD A BETTER FUTURE

ENSEMBLE NOUS CONSTRUISONS UN AVENIR MELLEUR

Sequence

I. OVERVIEW OF THE IDB

GROUP

i. IDB Group at a Glance

ii. Products and Services

iii. Modes of Financing

iv. Accomplishments

v. Special Funds, Programs &

Initiatives

II. BUSINESS

OPPORTUNITIES

vi. Potential Volume of

Business Opportunities

vii. Procurement Procedures

viii. How to Learn about





OVERVIEW OF THE IDB GROUP

IDB Corporate Film

Audio available in Arabic and French

via translation units

Language Channel Arabic 2 French 3





IDB Group at a Glance

Distinct Features

MDB of the Islamic World

South-South Institution

Solidarity-based

Shariah-compliance

Pioneer in Trade Finance

AAA-rated

37 Years in the Service of Development

1396-1431H /1975-2010G

1975

2009 / 2010

› 22 Member Countries › Authorized

› : ID 2.0 billion › : US$ 3.2 billion

1994

1999

ICD

› 56 Member Countries › Authorized: ID 30.0 billion

› : US$ 48.0 billion › Subscribed: ID 18.0 billion

› : US$ 28.8 billion › Group Approvals: US$ 70 billion (cumulative)

2008

1981

IDB Group





IDB Group at a Glance

Jeddah

HEADQUARTERS

Kuala Lumpur

REGIONAL OFFICES

Dakar

Rabat

Almaty

IDB Group

IRTI

ICIEC ICD

ITFC

IDB





Members / Entities of the Group

International Islamic Trade

Finance Corporation (ITFC)

Islamic Research & Training

Institute (IRTI)

The Islamic Corporation for the

Insurance of Investment and

Export Credit (ICIEC)

Islamic Corporation for the

Devt. Of the Private Sector

(ICD)

Serve as research arm of the IDB,

Lead development of the Islamic

Financial Services Industry (IFSI) to

support socio-economic development

of MCs.

Activities: training, research, advisory,

capacity building, etc.

Boost trade among OIC Member

Countries,

Offer Shariah-compliant export credit

insurance and re-insurance

Provide political risk insurance to

encourage investment flows.

Promote private sector development in

Member Countries,

Facilitate access to Islamic capital

markets,

Mobilize additional financial resources

for private sector,

Promote entrepreneurship, and

encouraging cross- country investments.

Advance trade across the Islamic

world,

Encourage intra-trade between OIC

Member Countries,

Help businesses to better access trade

finance, and

Provide them with the necessary trade-

related capacity building





Our Clients

56 Member Countries across 4 Continents +

Muslim Communities in Non-Member Countries

Government

Private Sector

NGOs

38. Pakistan

39. Palestine

40. Qatar

41. Saudi Arabia

42. Senegal

43. Sierra Leone

44. Somalia

45. Sudan

46. Suriname

47. Syria

48. Tajikistan

49. Togo

50. Tunisia

51. Turkey

52. Turkmenistan

53. Uganda

54. United Arab Emirates

55. Uzbekistan

56. Yemen

1. Afghanistan

2. Albania

3. Algeria

4. Azerbaijan

5. Bahrain

6. Bangladesh

7. Benin

8. Brunei

9. Burkina Faso

10. Cameroon

11. Chad

12. Comoros

13. Cote d’Ivoire

14. Djibouti

15. Egypt

16. Gabon

17. Gambia

18. Guinea

19. Guinea Bissau

20. Indonesia

21. Iran

22. Iraq

23. Jordan

24. Kazakhstan

25. Kuwait

26. Kyrgyz Republic

27. Lebanon

28. Libya

29. Malaysia

30. Maldives

31. Mali

32. Mauritania

33. Morocco

34. Mozambique

35. Niger

36. Nigeria

37. Oman





“Vision for Human Dignity”

Vision Statement

“By the year 1440 Hijrah, IDB shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the

landscape of comprehensive human development in the Muslim World and help restore its dignity”





Comprehensive Development Agenda

Nine Key Strategic Thrusts

1. Reform IDB

2. Alleviate poverty

3. Promote health

4. Universalize education

5. Empower women

6. Prosper the people

7. Expand the Islamic

financial industry

8. Facilitate integration of

IDB Countries

9. Improve the image of the

Muslim world

Mission Statement

Promote comprehensive human development, with a focus on the priority

areas of alleviating poverty, improving health, promoting education, improving governance and prospering the people”





Recent Reform at IDB

Results Oriented

Leveraging Partnerships

Knowledge-Oriented

Responsive to Clients

A New IDB Group Scaled up

Focused





Development of the Islamic Financial Services Industry

Project Financing Public (Sovereign) Private (Non-Sovereign) and Public-Private Partnerships (PPPs)

Trade Financing & Promotion of Intra-Trade between Member Countries

Capacity Development & Technical Cooperation

Investment & Export Credit Insurance

Islamic Economics & Finance Research and Training

Fund / Asset Management

Products and Services

Special Activities Science & Technology Program

Scholarship Programs

Special Assistance





Modes of Financing Loans

Leasing

Installment Sale

Istisna’a (Construction Financing)

Equity

Profit Sharing

Lines of Financing

Murabaha (Trade Financing)

Grants





Accomplishments

Group Cumulative Approvals: US$ 70 billion > Project Financing US$ 32.7 billion (47.1%) > Trade Financing US$ 37.0 billion (52.8%) > Special Assistance US$ 0.7 billion ( 0.1%)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

19

75

19

80

19

85

19

90

19

95

20

00

20

07

20

10

US

$ M

illio

n

Year

Yearly Approvals since Establishment From IDB OCR only





IDB’s Rating Affirmations

“AAA” & „P-1‟ Short-Term

“AAA” & „F1+‟ Short-Term

“AAA” & „A-1+‟ Short-Term

EU Zero Risk Weight





Major Development Partners Coordination Group

MDBs / Bilaterals





Special Funds, Programs & Initiatives

Special Program for the Development of Africa (SPDA)

• Aims to support investments in social & infrastructure sectors in Sub-Saharan Africa

• Total Size: US$ 12 billion (US$ 4 billion from IDB Group) over 5 years

Jeddah Declaration on Food Security

• Supports Member Countries affected by the global food crisis

• Total Size: US$ 1.5 billion over 5 years • Meeting both urgent, medium and long term

needs of mainly LDMCs

Islamic Solidarity Fund for Development (ISFD)

• Dedicated facility to fight poverty • Target Endowment of US$ 10 billion • Flagships: Integrated Community Driven

Development (ICDD), Vocational Literacy (VOLIP), Microfinance

Youth Employment in Arab Countries

• High-level of Unemployment amongst Youth in Arab Countries identified as one of the key causes for recent political turmoil and unrest

• Total Size: US$ 250 million • Areas: Micro-Finance, Vocational Training, Entrepreneurship

development, MSME Development, providing advisory services





Examples of Recent Projects in KSA

Rabigh Refinery and

Petrochemical Project

IDB Financing Amount: US$ 141.7 mil

Mode: Leasing

Year Approved: 2005

SABIC-YANSAB

Petrochemical Project

IDB Financing Amount: US$ 150 mil

Mode: Leasing

Year Approved: 2006

Hajj Terminal at KAAIA


Mode: Leasing

Year Approved: 2007

Ma'aden Phosphate

Fertiliser Complex


Mode: Leasing

Year Approved: 2008




Sequence

I. OVERVIEW OF THE IDB

GROUP

i. IDB Group at a Glance

ii. Products and Services

iii. Modes of Financing

iv. Accomplishments

v. Special Funds, Programs &

Initiatives

II. BUSINESS

OPPORTUNITIES

vi. Potential Volume of


vii. Procurement Procedures

viii. How to Learn about





BUSINESS OPPORTUNITIES

Potential Volume of Business Opportunities

Translates into:

500 Tenders (Construction/Goods) & Request for

Proposals (Consultancy Services)

*(Construction/Supply of Goods + Consultancy)

150 projects

US$ 5 billion worth of contracts* to be awarded

Amounts in

US$ million

Opportunities

during next 3

to 5 Years





Business Opportunities - Geographic

Middle East North Africa Others

US$ 5 billion

Construction/

Goods

US$ 428

Consultancy

US$ 34

Construction/Goods

US$ 922

Consultancy

US$ 73

Construction/Goods

US$ 3,476

Consultancy

US$ 277

Amounts in US$ million

Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen

Middle East

Others

North Africa Algeria, Egypt, Libya, Mauritania, Morocco, Sudan, Tunisia

All other Member Countries





Business Opportunities – Relevant Sectors

Construction / Goods

US$ 4.8 billion

Consultancy

US$ 380 million







Business Opportunities – 3 Major Sectors Transportation

US$ 1.5 billion

Energy

US$ 1.0 billion

Water

US$ 0.8 billion

Includes Construction +

Supply of Goods +

Consultancy





Procurement Procedures

Selection of Contractors International Competitive Bidding limited to IDB Member Countries (ICB/MC)

Used for majority of projects

Joint Ventures with Non-MC contractors are allowed provided works done by

MC contractors are more than 50%

Selection of Consultants Shortlist of IDB Member Country firms

Used for majority of projects

Joint Ventures with Non-MC firms are allowed provided MC firm takes lead





How to Learn about Business Opportunities

Sources of Information:

1)Contractor and Consultant Federations – i.e. FOCIC

& FCIC

2) IDB Website (http://www.isdb.org)

a) Press Release – Summary of Projects Approved after each

Board of Executive Directors Meeting

b) ‘Opportunities’ section

3)Other Websites, Media and Outlets

http://www.isdb.org/





(1) Contractor and Consultant Federations

For Contractors: For Consultants: Federation of Contractors from

Islamic Countries (FOCIC)

Federation of Consultants from

Islamic Countries (FCIC)

Mr. Hamid Jaber, President of FOCIC

Address:

P.O. Box 926638 Amman 11190 Jordan

Tel.: +96264610560

Fax.: +96264610561

Email: [email protected]

Mr. Faisal Al-Shawaf, President of FCIC

Address:

c/o Dr. Bulent Tarcan sok. no: 10 K:4

Fulya Mahallesi 34394 Gayrettepe

Istanbul - Turkey

Tel.: +90216 388 08 61

Fax.: +90216 388 08 61

Website: http://www.fcic-org.com

To apply, please fill in the FCIC Application

Form and send it to the FCIC Secretariat,

together with a certificate of registration at

the National Association of Consultants or

similar bodies at the applicant’s country of

origin.





(2) IDB Website (http://www.isdb.org)

a) Press Release – Summary of Projects Approved after

each Board of Executive Directors Meeting

b) ‘Opportunities‟ section

• List of Tender Opportunities for IDB-financed projects

http://www.isdb.org/





(3) Other Websites, Media and Outlets

a) Magazines & Newspapers (Local / International)

b) Offices of the IDB Governor and Alternate Governor

c) Embassies and Consulates of IDB Member Countries

d) dgMarket (http://www.dgmarket.com)

e) United Nations Development Business (UNDB) Online

(http://www.devbusiness.com)

http://www.dgmarket.com/

http://www.devbusiness.com/






The Islamic Development Bank Group h t t p : / / w w w . i s d b . o r g

Thank You

Financing & Business Opportunities Provided by the IDB Group

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