Effectiveness of The Islamic Development Bank (IDB) in Promoting Development in Muslim Countries

Abstract

This research investigates the relationship between the Islamic Development Bank (IDB) and its support for Muslim nations, delving into funding allocations, SDG progress, and Shariah compliance across pre-defined regional categories. We employ statistical analysis to illuminate the landscape of development within these diverse geographies, revealing significant disparities in IDB funding, SDG progress, and the advancement of Islamic finance across regions. Our findings suggest that the IDB should prioritize resource allocation based on need and potential impact, ensuring equitable access across all Muslim-majority regions. Focusing on countries lagging in SDG progress or Islamic finance development could be particularly impactful. Additionally, the IDB can strengthen its role by innovating and promoting Islamic finance instruments, fostering financial inclusion and economic growth. Investing in research and education pertaining to Islamic economics and finance will further augment knowledge and expertise, ensuring the sustained growth of the sector. By prioritizing funding, exploring innovative financing mechanisms, and focusing on these key areas, the IDB can effectively catalyze positive change in Muslim countries, contributing to overall development and the growth of the Islamic economics ecosystem.