An international development bank that funds projects on an interest-free basis. Capital is provided by governments of Muslim states. Based in Jeddah. Forty-five states participate in the bank, which began operations in 1975. Particularly active in providing long-term interest-free loans for projects with significant socioeconomic impact, usually infrastructural work such as roads, irrigation schemes, hospitals, and schools. Makes considerable efforts to support the poorest Muslim countries. Has taken steps in recent years to harness new capital, develop internationally acceptable Islamic financial institutions, and build closer relationships with Islamic commerical banks.
See also Organization of the Islamic Conference