IsDB Concludes Consultative Forum for 10-Year Strategy

The Board of Governors of the Islamic Development Bank (IsDB) has concluded a landmark consultative forum in Madinah, marking a decisive step toward finalizing the institution’s ten-year strategic framework for 2026–2035. Held on Tuesday at the King Salman International Convention Center in Madinah, the forum brought together governors, executive directors, and senior officials to review and refine the draft strategy that will guide the Jeddah-headquartered multilateral development bank through its next decade of operations. The gathering, reported by the Saudi Press Agency, represents the culmination of an extensive consultation process designed to align the IsDB Group’s planning cycle with the aspirations of its 57 member countries and the rapidly shifting priorities of the global development landscape.

For an institution that has financed thousands of projects across Africa, Asia, and the Middle East since its establishment in 1975, the forum carries significance far beyond routine governance. It signals a deliberate effort to reposition the IsDB as a more agile, innovative, and responsive development partner at a time when member states face compounding challenges — from climate adaptation and food security to digital transformation and post-pandemic recovery. The fact that the deliberations took place in Madinah, a city of profound historical and spiritual importance in the Kingdom of Saudi Arabia, underscores the host country’s central role in convening multilateral dialogue and shaping the future of Islamic finance and development cooperation.

Context and Background

Why does a strategic planning exercise at a multilateral bank matter to anyone beyond its boardroom? The answer lies in the scale of the IsDB’s footprint. As the premier South-South development institution, the bank operates with a subscribed capital base that has enabled cumulative approvals exceeding $150 billion, supporting infrastructure, education, health, agriculture, and renewable energy projects in some of the world’s most vulnerable economies. When the IsDB recalibrates its strategy, the ripple effects are felt from the Sahel to Southeast Asia, from Central Asia to sub-Saharan Africa.

The current strategy cycle, running through 2025, was developed under markedly different global conditions than those now prevailing. The COVID-19 pandemic, the war in Ukraine, inflationary pressures, debt distress in low-income countries, and the accelerating climate emergency have collectively reshaped the development finance architecture. Multilateral banks everywhere are being asked to do more with constrained resources, to leverage private capital at greater scale, and to demonstrate measurable impact. The IsDB Group’s decision to undertake a comprehensive consultative process for its 2026–2035 framework reflects an awareness that business as usual will not suffice.

Saudi Arabia’s relationship with the IsDB adds another layer of significance. The Kingdom is not only the bank’s largest shareholder and host of its headquarters in Jeddah, but also a strategic partner whose Vision 2030 agenda — focused on economic diversification, sustainability, and global engagement — resonates with the IsDB’s own priorities. The choice of Madinah as the forum venue, at the King Salman International Convention Center, highlights the Kingdom’s growing capacity to host high-level multilateral events and its commitment to facilitating dialogue within the Islamic world and beyond.

Key Details of the Consultative Forum

What exactly did the governors and officials accomplish during their deliberations? According to the Saudi Press Agency, the forum featured two working sessions dedicated to reviewing and providing guidance on the draft strategic framework document. Participants emphasized the need for an innovative approach to address evolving global challenges while ensuring that the group’s planning cycle aligns with shareholder aspirations and emerging global priorities. This dual emphasis — innovation and alignment — captures the essential tension that any multilateral institution must manage: the need to pioneer new financial instruments and delivery models while remaining accountable to the diverse interests of member states.

A closing session focused on future outlooks, with an in-depth review and analysis of the draft document. The objective was to refine the strategy before its presentation to the group’s boards of directors for approval at the annual meetings in 2025. This sequencing is important. The consultative forum was not a decision-making body but a deliberative one, designed to surface perspectives, test assumptions, and build consensus ahead of formal governance votes. By the time the boards of directors convene, the strategy will have been stress-tested by the very stakeholders who will be responsible for its implementation.

The forum’s structure also reflects a broader trend in multilateral governance: the move toward more inclusive, transparent, and iterative strategy development. Rather than drafting a plan in isolation and presenting it as a fait accompli, the IsDB leadership opted for a consultative process that invites governors — typically finance ministers or central bank governors from member countries — to shape the strategic direction. This approach enhances ownership and increases the likelihood that the final strategy will be embraced and executed effectively at the country level.

International and Regional Impact

How might the outcomes of this forum influence development finance beyond the IsDB’s immediate membership? The bank occupies a unique niche in the global architecture. It is a member of the Coordination Group of Arab National and Regional Development Institutions, and it collaborates closely with the World Bank, the Asian Development Bank, the African Development Bank, and various United Nations agencies. A reinvigorated IsDB strategy could strengthen these partnerships, particularly in co-financing arrangements where multilateral banks pool resources to de-risk large infrastructure projects and attract private investment.

Regionally, the forum’s emphasis on innovation and responsiveness aligns with the priorities of the Gulf Cooperation Council states and the broader Middle East. Saudi Arabia, the United Arab Emirates, and Qatar have all increased their development finance commitments in recent years, often through bilateral channels and sovereign wealth funds. The IsDB provides a multilateral complement to these efforts, offering a platform for coordinated action that amplifies individual contributions. For member countries in Africa and Asia, the bank remains a critical source of concessional and non-concessional financing, technical assistance, and capacity building.

The forum also comes at a moment when Islamic finance is gaining traction globally as a tool for sustainable development. Sukuk issuance, green bonds, and blended finance structures that comply with Shariah principles are attracting interest from both traditional and new investors. The IsDB has been a pioneer in this space, and its next ten-year strategy is expected to deepen its engagement with capital markets while expanding its role in climate finance and digital infrastructure — areas where the demand from member states is growing rapidly.

Economic and Strategic Significance

Why should global investors and policymakers pay attention to a strategic planning forum that will not produce binding decisions until 2025? The answer lies in the signals it sends about the direction of development finance. The IsDB’s ten-year strategy will shape its lending priorities, its risk appetite, its use of financial instruments, and its partnerships for a decade. For recipient countries, this translates into predictable access to financing for priority sectors. For investors, it signals where opportunities for co-investment and sukuk issuance may emerge. For other multilateral institutions, it offers a benchmark for how a major South-South bank is adapting to a multipolar world.

The economic context is challenging but not without opportunity. Many IsDB member countries are grappling with high debt levels, currency volatility, and constrained fiscal space. At the same time, the energy transition, the digital economy, and demographic shifts are creating new avenues for growth. The IsDB’s ability to help member states navigate these crosscurrents — by providing not just financing but also knowledge, policy advice, and risk mitigation — will determine its relevance in the coming decade. The Madinah forum’s focus on innovation suggests that the bank’s leadership understands this imperative and is prepared to adapt its toolkit accordingly.

Saudi Arabia’s strategic interests are also served by a strong and effective IsDB. The Kingdom has long used its position as the bank’s largest shareholder and host to advance its vision of a prosperous, interconnected Islamic world. Vision 2030’s emphasis on economic diversification, global partnerships, and sustainable development dovetails with the IsDB’s mission. By hosting the consultative forum in Madinah and supporting the bank’s strategic renewal, Saudi Arabia reinforces its role as a bridge between the developed and developing worlds, and as a catalyst for multilateral cooperation.

Vision 2030 Alignment

In what ways does the IsDB’s strategic renewal reflect the broader ambitions of Saudi Vision 2030? The alignment is both thematic and institutional. Thematically, Vision 2030 calls for a diversified, sustainable, and globally engaged Saudi economy — goals that mirror the IsDB’s focus on infrastructure, renewable energy, human capital, and private sector development. Institutionally, the Kingdom’s support for the IsDB’s consultative process demonstrates its commitment to multilateralism and its willingness to invest diplomatic capital in institutions that serve the common good of the Islamic world.

As the IsDB Group prepares to present its 2026–2035 strategy to its boards of directors in 2025, the Madinah forum stands as a testament to the power of inclusive dialogue. It shows that even large, complex institutions can reinvent themselves when they listen to their stakeholders and embrace innovation. For Saudi Arabia, it is another example of how the Kingdom is using its convening power and its own transformative journey to inspire and enable progress beyond its borders. The coming decade will test the IsDB’s ability to deliver on its renewed promise, but the foundation laid in Madinah suggests that it is well positioned to meet the challenge.

20 Questions

Q1. What was the purpose of the IsDB consultative forum in Madinah?

A1. The forum aimed to finalize the framework for the IsDB Group’s 10-year strategy (2026–2035), gathering governors and officials to review and refine the draft strategic document before its presentation to the boards of directors in 2025.

Q2. Where exactly was the forum held?

A2. It was held at the King Salman International Convention Center in Madinah, Saudi Arabia, a venue that reflects the Kingdom’s capacity to host high-level multilateral events and its central role in the Islamic world.

Q3. When did the forum take place?

A3. The forum was held on Tuesday, January 14, 2025, as reported by the Saudi Press Agency, which published the announcement on January 16, 2025, from Jeddah.

Q4. Who participated in the consultative forum?

A4. The forum brought together the Board of Governors of the Islamic Development Bank, along with senior officials and executive directors, representing the bank’s 57 member countries and its leadership.

Q5. What is the IsDB Group’s 10-year strategy timeframe?

A5. The strategy covers the period from 2026 to 2035, succeeding the current strategy cycle that runs through 2025, and will set the direction for the bank’s operations for a full decade.

Q6. How many working sessions were held during the forum?

A6. The forum featured two working sessions that reviewed and provided guidance on the draft strategic framework document, followed by a closing session focused on future outlooks and in-depth analysis.

Q7. What key themes emerged from the discussions?

A7. Participants emphasized the need for an innovative approach to address evolving global challenges, aligning the group’s planning cycle with shareholder aspirations and emerging global priorities such as climate action and digital transformation.

Q8. When will the strategy be presented for approval?

A8. The refined draft will be presented to the group’s boards of directors for approval at the annual meetings in 2025, following the consultative forum’s review and guidance.

Q9. What is the Islamic Development Bank’s role in global development?

A9. The IsDB is a major multilateral development bank that finances infrastructure, education, health, and renewable energy projects across Africa, Asia, and the Middle East, with cumulative approvals exceeding $150 billion.

Q10. Why is the forum significant for Saudi Arabia?

A10. Saudi Arabia hosts the IsDB headquarters in Jeddah and is its largest shareholder. Hosting the forum in Madinah highlights the Kingdom’s commitment to multilateral cooperation and its Vision 2030 goals of global engagement.

Q11. How does the IsDB strategy relate to Vision 2030?

A11. The IsDB’s focus on innovation, sustainability, and private sector development aligns with Vision 2030’s objectives of economic diversification, global partnerships, and sustainable development, reinforcing Saudi Arabia’s role as a bridge between developed and developing nations.

Q12. What are the IsDB’s main areas of operation?

A12. The bank operates in infrastructure, education, health, agriculture, renewable energy, and private sector development, serving 57 member countries across Africa, Asia, and the Middle East with financing and technical assistance.

Q13. What does ‘aligning planning cycle with shareholder aspirations’ mean?

A13. It means ensuring that the IsDB’s ten-year strategy reflects the priorities and needs of its member countries, as expressed by their governors, rather than being drafted in isolation by the bank’s management.

Q14. How does the IsDB collaborate with other multilateral banks?

A14. The IsDB partners with the World Bank, Asian Development Bank, African Development Bank, and UN agencies on co-financing arrangements to de-risk large infrastructure projects and attract private investment.

Q15. What is the significance of Islamic finance in the IsDB’s strategy?

A15. Islamic finance, including sukuk and Shariah-compliant instruments, is a growing tool for sustainable development. The IsDB has pioneered its use and is expected to deepen engagement with capital markets in its next strategy.

Q16. How many member countries does the IsDB have?

A16. The Islamic Development Bank has 57 member countries, spanning Africa, Asia, the Middle East, and Europe, making it one of the largest multilateral development institutions in the world.

Q17. What challenges do IsDB member countries face today?

A17. Member countries face high debt levels, currency volatility, climate change impacts, food insecurity, and the need for digital transformation, all of which the IsDB’s new strategy aims to address through innovative financing.

Q18. What happens after the boards of directors approve the strategy?

A18. Once approved at the 2025 annual meetings, the strategy will guide the IsDB Group’s operations, lending priorities, and partnerships for the 2026–2035 period, with implementation beginning in 2026.

Q19. How does the forum reflect trends in multilateral governance?

A19. The forum reflects a shift toward more inclusive, transparent, and iterative strategy development, where stakeholders are consulted early and their input shapes the final plan, enhancing ownership and effectiveness.

Q20. What is the expected impact of the new strategy on global development?

A20. The strategy is expected to strengthen the IsDB’s role in climate finance, digital infrastructure, and private sector development, enabling member countries to achieve sustainable growth and improve living standards over the next decade.

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