IsDB urges member states to strengthen cooperation with neighbors

The Islamic Development Bank seeks to convince its member states of the importance of strengthening cooperation with neighboring countries, Chairman of the IsDB Group Muhammad Al Jasser said during the annual meetings of the Islamic Development Bank Group in Baku, as quoted by Report.

"It is critically important to ensure that the advantages of different countries complement one another and create mutual benefits. Otherwise, negative dynamics begin to prevail, and in unfavorable circumstances, parties resort to blaming one another. Economic growth requires patience and carefully considered planning. That is why we rely on the conclusions and decisions of the countries themselves-to ensure that the priorities they identify will genuinely deliver significant benefits to their citizens," Al Jasser said.

He noted that the IsDB takes as its starting point the priorities and conclusions developed by member states themselves.

"We are, and intend to remain, their key and preferred partner. We do not come with ready-made templates. We use their own plans as a foundation, discuss them jointly, and share the experience we have accumulated through our work in many countries. We demonstrate which approaches have proven effective in some regions and which have failed to produce the desired results in others," he added.

According to Al Jasser, countries need a broader range of financing tools tailored to specific projects.

"For example, sukuk is an excellent innovation rooted in Islamic traditions. This instrument is backed by real assets, which prevents the excessive use of financial leverage. As a result, issuers can only issue what can be properly managed and what does not lead to excessive debt burdens or financial difficulties. Moreover, the potential of sukuk can be expanded through already completed projects: these assets can be sold or used as collateral, and the proceeds can then be directed toward financing new initiatives," he said.

Al Jasser explained that Islamic finance instruments facilitate funding for a variety of projects because sukuk, being asset-backed, enable the issuance of securities linked to those assets and help advance project implementation and construction.

"In addition, they can serve as an effective savings instrument. There are also other mechanisms designed for specific needs. What I mean is that different categories of securities can be created that comply with Sharia principles while also being optimally suited to particular projects in the market," the IsDB Group chairman added.