The Islamic Development Bank - Revision history

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	==References==		==References==

			[[Category:English Wikivahdat]]
			[[category:Think tanks]]

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	The Islamic Development Bank (IsDB) is a multilateral development finance institution that aims to foster economic development and social progress among its member countries and Muslim communities worldwide, operating in accordance with Shariah (Islamic law) (Islamic Development Bank, n.d.-a). From Iran’s perspective, IsDB is a key partner in supporting infrastructure, production, and development projects, providing access to interest-free and ethical financing aligned with Islamic financial principles (Special Eurasia, 2024)<ref>Special Eurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges. https://www.specialeurasia.com/2024/09/23/islamic-banking-iran/</ref>.		'''The Islamic Development Bank''' (IsDB) is a multilateral development finance institution that aims to foster economic development and social progress among its member countries and Muslim communities worldwide, operating in accordance with Shariah (Islamic law) (Islamic Development Bank, n.d.-a). From Iran’s perspective, IsDB is a key partner in supporting infrastructure, production, and development projects, providing access to interest-free and ethical financing aligned with Islamic financial principles (Special Eurasia, 2024)<ref>Special Eurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges. https://www.specialeurasia.com/2024/09/23/islamic-banking-iran/</ref>.

	==Location==		==Location==

Peysepar: /* Critique of IsDB’s Work and Hidden Objectives from Iran’s Perspective */

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Critique of IsDB’s Work and Hidden Objectives from Iran’s Perspective

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	2. Challenges in Islamic Banking Implementation		2. Challenges in Islamic Banking Implementation

	From Iran’s internal viewpoint, Islamic banking—including that supported by institutions like IsDB—faces significant systemic challenges. These include governmental attitudes that sometimes hinder the full realization of Shariah-compliant banking, lack of competition, insufficient Shariah supervision, and absence of standardized accounting and auditing frameworks (Jalilvand & Samiei, 2020). Such issues limit the effectiveness of Islamic finance initiatives promoted by IsDB in Iran and other member states, raising questions about the practical impact of IsDB’s financial models.		From Iran’s internal viewpoint, Islamic banking—including that supported by institutions like IsDB—faces significant systemic challenges. These include governmental attitudes that sometimes hinder the full realization of Shariah-compliant banking, lack of competition, insufficient Shariah supervision, and absence of standardized accounting and auditing frameworks (Jalilvand & Samiei, 2020)<ref>Jalilvand, A., & Samiei, M. (2020). Challenges Facing Islamic Banking in Iran: Evaluation and Policy Implications. Journal of Islamic Monetary Economics and Finance, 6(3), 621-640. https://doi.org/10.21098/jimf.v6i3.1241</ref>. Such issues limit the effectiveness of Islamic finance initiatives promoted by IsDB in Iran and other member states, raising questions about the practical impact of IsDB’s financial models.

	3. Criticism of Shariah Compliance and Economic Impact		3. Criticism of Shariah Compliance and Economic Impact

	Iranian scholars have critically reviewed the Islamic banking system’s operations, noting deviations from true profit-and-loss sharing principles and the persistence of interest-like mechanisms under different contract names, which may undermine the ethical foundations of Islamic finance promoted by IsDB (Zarghani, 2021). This critique extends to IsDB’s financing practices, suggesting that despite its Islamic mandate, the Bank’s financial products sometimes fail to fully embody Islamic economic justice ideals valued in Iran.		Iranian scholars have critically reviewed the Islamic banking system’s operations, noting deviations from true profit-and-loss sharing principles and the persistence of interest-like mechanisms under different contract names, which may undermine the ethical foundations of Islamic finance promoted by IsDB (Zarghani, 2021)<ref>Zarghani, M. (2021). Islamic Banking System in Iran: A Critical Review. SSRN. https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3759107_code4537197.pdf?abstractid=3759107&mirid=1</ref>. This critique extends to IsDB’s financing practices, suggesting that despite its Islamic mandate, the Bank’s financial products sometimes fail to fully embody Islamic economic justice ideals valued in Iran.

	4. Limited Autonomy and Influence		4. Limited Autonomy and Influence

Peysepar at 12:19, 7 June 2025

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Establishment and Founders

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	==Establishment and Founders==		==Establishment and Founders==
	* Founding Year: 1975 (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.		* Founding Year: 1975 (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.
	* Founders: Finance Ministers of OIC member states, with Saudi Arabia’s King Faisal playing a pivotal role (Wikipedia, n.d.)~~<ref>~~<ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank~~</ref>~~</ref>.		* Founders: Finance Ministers of OIC member states, with Saudi Arabia’s King Faisal playing a pivotal role (Wikipedia, n.d.)<ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank</ref>.
	* Initial Capital: 755 million Islamic dinar (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.		* Initial Capital: 755 million Islamic dinar (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.
	* Major Shareholders: As of 2024, the largest shareholders are Saudi Arabia (22.5%), Libya (9.03%), Indonesia (7.94%), and Iran (7.90%) (Wikipedia, n.d.~~<ref>~~<ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank~~</ref>~~</ref>; Nour News, n.d.).		* Major Shareholders: As of 2024, the largest shareholders are Saudi Arabia (22.5%), Libya (9.03%), Indonesia (7.94%), and Iran (7.90%) (Wikipedia, n.d.<ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank</ref>; Nour News, n.d.).

	==Financial Sponsors==		==Financial Sponsors==

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Created page with "The Islamic Development Bank (IsDB) is a multilateral development finance institution that aims to foster economic development and social progress among its member countries and Muslim communities worldwide, operating in accordance with Shariah (Islamic law) (Islamic Development Bank, n.d.-a). From Iran’s perspective, IsDB is a key partner in supporting infrastructure, production, and development projects, providing access to interest-free and ethical financing aligned..."

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The Islamic Development Bank (IsDB) is a multilateral development finance institution that aims to foster economic development and social progress among its member countries and Muslim communities worldwide, operating in accordance with Shariah (Islamic law) (Islamic Development Bank, n.d.-a). From Iran’s perspective, IsDB is a key partner in supporting infrastructure, production, and development projects, providing access to interest-free and ethical financing aligned with Islamic financial principles (Special Eurasia, 2024).

==Location==
* Headquarters: 8111 King Khalid Street, Al Nazla Al Yamaniyah District, Unit No. 1, Jeddah 22332-2444, Saudi Arabia (Islamic Development Bank, n.d.-b).
* Regional Offices: Almaty (Kazakhstan), Kuala Lumpur (Malaysia), Rabat (Morocco) (Islamic Development Bank, n.d.-b).
* Field Representatives: Including in Iran, reflecting Iran’s active engagement with the Bank (Invest in Fars, 2017).

==History==
The IsDB was established in 1975, following the ratification of its Articles of Agreement by 22 founding member countries, including Iran (Islamic Development Bank, 2018). The idea was initiated at the first meeting of the Finance Ministers of the Organisation of Islamic Cooperation (OIC) in 1973, with significant support from King Faisal of Saudi Arabia (Wikipedia, n.d.). The Bank officially began operations on October 20, 1975 (Islamic Development Bank, 2018).

==Establishment and Founders==
* Founding Year: 1975 (Islamic Development Bank, 2018).
* Founders: Finance Ministers of OIC member states, with Saudi Arabia’s King Faisal playing a pivotal role (Wikipedia, n.d.).
* Initial Capital: 755 million Islamic dinar (Islamic Development Bank, 2018).
* Major Shareholders: As of 2024, the largest shareholders are Saudi Arabia (22.5%), Libya (9.03%), Indonesia (7.94%), and Iran (7.90%) (Wikipedia, n.d.; Nour News, n.d.).

==Financial Sponsors==
The IsDB’s capital is provided by its 57 member countries, with the largest financial backing from Saudi Arabia, followed by Libya, Indonesia, Iran, and Nigeria (Wikipedia, n.d.). The Bank also partners with other international development institutions such as the World Bank and Asian Development Bank for co-financing (Islamic Development Bank, 2018). Iran’s status as a major shareholder ensures access to preferential financing and tailored support for national development priorities (Nour News, n.d.).

==Website and Contact Information==
* Website: www.isdb.org (Islamic Development Bank, n.d.-a)
* Address: 8111 King Khalid Street, Al Nazla Al Yamaniyah District, Unit No. 1, Jeddah 22332-2444, Saudi Arabia (Islamic Development Bank, n.d.-b)
* Phone: +966 12 6361400 (Islamic Development Bank, n.d.-b)
* Fax: +966 12 6366871 (Islamic Development Bank, n.d.-b)
* Email: [email protected] (Islamic Development Bank, n.d.-b)

Prominent Research Figures
The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023). From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018).
Key Fields of Concentration (Research)
The IsDB and IRTI focus on several key research areas highly relevant to Iran:
• Islamic economics, banking, and finance, including the development of Shariah-compliant financial models and instruments (Islamic Development Bank, 2018).
• Infrastructure development, water sanitation, energy, and urban services, which are priorities in Iran’s IsDB-funded projects (Financial Tribune, 2018).
• Poverty alleviation, sustainable development, and capacity building, reflecting the broader mission of fostering social and economic progress in the Islamic world (Financial Tribune, 2018).
• Training and human capital development in Islamic finance, with IRTI providing both in-person and online courses accessible to Iranian professionals (Financial Tribune, 2018).
Relations to the Islamic World
IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018; Sinabank, 2023). The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023).
Publishing / Significant Reports
The IsDB and IRTI publish a range of research outputs, including:
• The refereed bi-annual journal "Islamic Economic Studies," published in Arabic, English, and French, which disseminates research on Islamic economics and finance (Islamic Development Bank, 2018).
• Annual Reports, such as the IsDB Annual Report 2023, which detail the Bank’s operations, research findings, and financial statements (IsDB, 2023).
• Country Economic Work reports, including the "Diagnosing Iranian Economy" book, which compiles background documents for Iran’s Member Country Partnership Strategy (MCPS) (Financial Tribune, 2018).
• Seminar proceedings and technical papers that inform policy and practice in member countries (Islamic Development Bank, 2018).
Impacts and Partnerships
IsDB’s impact in Iran is significant:
• Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018).
• The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018).
• IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018; Sinabank, 2023).
• The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).
Critique of IsDB’s Work and Hidden Objectives from Iran’s Perspective
1. Political Influence and Sectarian Bias
Research indicates that the IsDB’s aid allocation and financing may be influenced by the Sunni-Shia divide, with Saudi Arabia—holding the largest share in the Bank—using IsDB resources to promote Sunni political interests. This has led to perceptions that IsDB development aid favors Sunni-majority countries or Sunni factions within member states, sometimes at the expense of Shiite communities, including Iran’s regional allies (Hernandez & Vadlamannati, 2013). For example, Saudi Arabia reportedly used IsDB aid to support Sunni governments and factions in countries like Sudan, Yemen, Lebanon, and Bahrain, which complicates Iran’s relations with the Bank and raises concerns about hidden geopolitical objectives behind IsDB financing (Hernandez & Vadlamannati, 2013).
2. Challenges in Islamic Banking Implementation
From Iran’s internal viewpoint, Islamic banking—including that supported by institutions like IsDB—faces significant systemic challenges. These include governmental attitudes that sometimes hinder the full realization of Shariah-compliant banking, lack of competition, insufficient Shariah supervision, and absence of standardized accounting and auditing frameworks (Jalilvand & Samiei, 2020). Such issues limit the effectiveness of Islamic finance initiatives promoted by IsDB in Iran and other member states, raising questions about the practical impact of IsDB’s financial models.
3. Criticism of Shariah Compliance and Economic Impact
Iranian scholars have critically reviewed the Islamic banking system’s operations, noting deviations from true profit-and-loss sharing principles and the persistence of interest-like mechanisms under different contract names, which may undermine the ethical foundations of Islamic finance promoted by IsDB (Zarghani, 2021). This critique extends to IsDB’s financing practices, suggesting that despite its Islamic mandate, the Bank’s financial products sometimes fail to fully embody Islamic economic justice ideals valued in Iran.
4. Limited Autonomy and Influence
Although Iran is a major shareholder in IsDB, the dominance of Saudi Arabia and other Gulf states in decision-making processes may limit Iran’s influence over the Bank’s strategic priorities and project selections. This power imbalance fuels skepticism in Iran regarding the Bank’s neutrality and whether it genuinely serves the development needs of all Muslim countries equally (Hernandez & Vadlamannati, 2013).

← Older revision		Revision as of 15:49, 7 June 2025
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	==Prominent Research Figures==		==Prominent Research Figures==
	The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023). From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.		The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023)<ref>IsDB. (2023). Annual Report 2023. https://2023.ar.isdb.org/wp-content/uploads/2024/04/IsDB_AR23_EN_WEB_V2.pdf</ref>. From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.

	==Key Fields of Concentration (Research)==		==Key Fields of Concentration (Research)==
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	==Relations to the Islamic World==		==Relations to the Islamic World==
	IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>; Sinabank, 2023). The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023).		IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>; Sinabank, 2023)<ref>Sinabank. (2023, December 14). Iran, Saudi cooperating in Islamic Development Bank. https://www.sinabank.ir/en/news/54233-Iran-Saudi-cooperating-in-Islamic-Development-Bank.html</ref>. The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023)<ref>Sinabank. (2023, December 14). Iran, Saudi cooperating in Islamic Development Bank. https://www.sinabank.ir/en/news/54233-Iran-Saudi-cooperating-in-Islamic-Development-Bank.html</ref>.

	==Publishing / Significant Reports==		==Publishing / Significant Reports==
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	* Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.		* Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.		* The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>; Sinabank, 2023).		* IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>; Sinabank, 2023)<ref>Sinabank. (2023, December 14). Iran, Saudi cooperating in Islamic Development Bank. https://www.sinabank.ir/en/news/54233-Iran-Saudi-cooperating-in-Islamic-Development-Bank.html</ref>.
	* The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).		* The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).

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	1. Political Influence and Sectarian Bias		1. Political Influence and Sectarian Bias

	Research indicates that the IsDB’s aid allocation and financing may be influenced by the Sunni-Shia divide, with Saudi Arabia—holding the largest share in the Bank—using IsDB resources to promote Sunni political interests. This has led to perceptions that IsDB development aid favors Sunni-majority countries or Sunni factions within member states, sometimes at the expense of Shiite communities, including Iran’s regional allies (Hernandez & Vadlamannati, 2013). For example, Saudi Arabia reportedly used IsDB aid to support Sunni governments and factions in countries like Sudan, Yemen, Lebanon, and Bahrain, which complicates Iran’s relations with the Bank and raises concerns about hidden geopolitical objectives behind IsDB financing (Hernandez & Vadlamannati, 2013).		Research indicates that the IsDB’s aid allocation and financing may be influenced by the Sunni-Shia divide, with Saudi Arabia—holding the largest share in the Bank—using IsDB resources to promote Sunni political interests. This has led to perceptions that IsDB development aid favors Sunni-majority countries or Sunni factions within member states, sometimes at the expense of Shiite communities, including Iran’s regional allies (Hernandez & Vadlamannati, 2013)<ref>Hernandez, R., & Vadlamannati, K. C. (2013). The Case of the Islamic Development Bank. PEIO Conference Paper. Retrieved from https://wp.peio.me/wp-content/uploads/2014/04/Conf7_Hernandez-Vadlamannati-09.09.2013.pdf</ref>. For example, Saudi Arabia reportedly used IsDB aid to support Sunni governments and factions in countries like Sudan, Yemen, Lebanon, and Bahrain, which complicates Iran’s relations with the Bank and raises concerns about hidden geopolitical objectives behind IsDB financing (Hernandez & Vadlamannati, 2013)<ref>Hernandez, R., & Vadlamannati, K. C. (2013). The Case of the Islamic Development Bank. PEIO Conference Paper. Retrieved from https://wp.peio.me/wp-content/uploads/2014/04/Conf7_Hernandez-Vadlamannati-09.09.2013.pdf</ref>.

	2. Challenges in Islamic Banking Implementation		2. Challenges in Islamic Banking Implementation
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	4. Limited Autonomy and Influence		4. Limited Autonomy and Influence

	Although Iran is a major shareholder in IsDB, the dominance of Saudi Arabia and other Gulf states in decision-making processes may limit Iran’s influence over the Bank’s strategic priorities and project selections. This power imbalance fuels skepticism in Iran regarding the Bank’s neutrality and whether it genuinely serves the development needs of all Muslim countries equally (Hernandez & Vadlamannati, 2013).		Although Iran is a major shareholder in IsDB, the dominance of Saudi Arabia and other Gulf states in decision-making processes may limit Iran’s influence over the Bank’s strategic priorities and project selections. This power imbalance fuels skepticism in Iran regarding the Bank’s neutrality and whether it genuinely serves the development needs of all Muslim countries equally (Hernandez & Vadlamannati, 2013)<ref>Hernandez, R., & Vadlamannati, K. C. (2013). The Case of the Islamic Development Bank. PEIO Conference Paper. Retrieved from https://wp.peio.me/wp-content/uploads/2014/04/Conf7_Hernandez-Vadlamannati-09.09.2013.pdf</ref>.

	==References==		==References==

← Older revision		Revision as of 15:40, 7 June 2025
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	The Islamic Development Bank (IsDB) is a multilateral development finance institution that aims to foster economic development and social progress among its member countries and Muslim communities worldwide, operating in accordance with Shariah (Islamic law) (Islamic Development Bank, n.d.-a). From Iran’s perspective, IsDB is a key partner in supporting infrastructure, production, and development projects, providing access to interest-free and ethical financing aligned with Islamic financial principles (Special Eurasia, 2024).		The Islamic Development Bank (IsDB) is a multilateral development finance institution that aims to foster economic development and social progress among its member countries and Muslim communities worldwide, operating in accordance with Shariah (Islamic law) (Islamic Development Bank, n.d.-a). From Iran’s perspective, IsDB is a key partner in supporting infrastructure, production, and development projects, providing access to interest-free and ethical financing aligned with Islamic financial principles (Special Eurasia, 2024)<ref>Special Eurasia. (2024, September 23). Islamic Banking in Iran: Opportunities and Challenges. https://www.specialeurasia.com/2024/09/23/islamic-banking-iran/</ref>.

	==Location==		==Location==
	* Headquarters: 8111 King Khalid Street, Al Nazla Al Yamaniyah District, Unit No. 1, Jeddah 22332-2444, Saudi Arabia (Islamic Development Bank, n.d.-b).		* Headquarters: 8111 King Khalid Street, Al Nazla Al Yamaniyah District, Unit No. 1, Jeddah 22332-2444, Saudi Arabia (Islamic Development Bank, n.d.-b)<ref>Islamic Development Bank. (n.d.-b). Contact. https://www.isdb.org/who-we-are/contact</ref>.
	* Regional Offices: Almaty (Kazakhstan), Kuala Lumpur (Malaysia), Rabat (Morocco) (Islamic Development Bank, n.d.-b).		* Regional Offices: Almaty (Kazakhstan), Kuala Lumpur (Malaysia), Rabat (Morocco) (Islamic Development Bank, n.d.-b)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.
	* Field Representatives: Including in Iran, reflecting Iran’s active engagement with the Bank (Invest in Fars, 2017).		* Field Representatives: Including in Iran, reflecting Iran’s active engagement with the Bank (Invest in Fars, 2017)<ref>Invest in Fars. (2017, October 24). Islamic Development Bank. https://investinfars.ir/en-us/Financial-Resources-Guide/Islamic-Development-Bank</ref>.

	==History==		==History==
	The IsDB was established in 1975, following the ratification of its Articles of Agreement by 22 founding member countries, including Iran (Islamic Development Bank, 2018). The idea was initiated at the first meeting of the Finance Ministers of the Organisation of Islamic Cooperation (OIC) in 1973, with significant support from King Faisal of Saudi Arabia (Wikipedia, n.d.). The Bank officially began operations on October 20, 1975 (Islamic Development Bank, 2018).		The IsDB was established in 1975, following the ratification of its Articles of Agreement by 22 founding member countries, including Iran (Islamic Development Bank, 2018). The idea was initiated at the first meeting of the Finance Ministers of the Organisation of Islamic Cooperation (OIC) in 1973, with significant support from King Faisal of Saudi Arabia (Wikipedia, n.d.)<ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank</ref>. The Bank officially began operations on October 20, 1975 (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (2018). IDB in Brief. https://www.isdb.org/sites/default/files/media/documents/2018-12/IDB_In_Brief_1423H.pdf</ref>.

	==Establishment and Founders==		==Establishment and Founders==
	* Founding Year: 1975 (Islamic Development Bank, 2018).		* Founding Year: 1975 (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.
	* Founders: Finance Ministers of OIC member states, with Saudi Arabia’s King Faisal playing a pivotal role (Wikipedia, n.d.).		* Founders: Finance Ministers of OIC member states, with Saudi Arabia’s King Faisal playing a pivotal role (Wikipedia, n.d.)<ref><ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank</ref></ref>.
	* Initial Capital: 755 million Islamic dinar (Islamic Development Bank, 2018).		* Initial Capital: 755 million Islamic dinar (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>.
	* Major Shareholders: As of 2024, the largest shareholders are Saudi Arabia (22.5%), Libya (9.03%), Indonesia (7.94%), and Iran (7.90%) (Wikipedia, n.d.; Nour News, n.d.).		* Major Shareholders: As of 2024, the largest shareholders are Saudi Arabia (22.5%), Libya (9.03%), Indonesia (7.94%), and Iran (7.90%) (Wikipedia, n.d.<ref><ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank</ref></ref>; Nour News, n.d.).

	==Financial Sponsors==		==Financial Sponsors==
	The IsDB’s capital is provided by its 57 member countries, with the largest financial backing from Saudi Arabia, followed by Libya, Indonesia, Iran, and Nigeria (Wikipedia, n.d.). The Bank also partners with other international development institutions such as the World Bank and Asian Development Bank for co-financing (Islamic Development Bank, 2018). Iran’s status as a major shareholder ensures access to preferential financing and tailored support for national development priorities (Nour News, n.d.).		The IsDB’s capital is provided by its 57 member countries, with the largest financial backing from Saudi Arabia, followed by Libya, Indonesia, Iran, and Nigeria (Wikipedia, n.d.)<ref>Wikipedia. (n.d.). Islamic Development Bank. https://en.wikipedia.org/wiki/Islamic_Development_Bank</ref>. The Bank also partners with other international development institutions such as the World Bank and Asian Development Bank for co-financing (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (2018). IDB in Brief. https://www.isdb.org/sites/default/files/media/documents/2018-12/IDB_In_Brief_1423H.pdf</ref>. Iran’s status as a major shareholder ensures access to preferential financing and tailored support for national development priorities (Nour News, n.d.)<ref>Nour News. (n.d.). IsDB members welcome Iran's proposal on preferential financing. https://nournews.ir/en/news/171700/IsDB-members-welcome-Iran's-proposal-on-preferential-financing-Minister</ref>.

	==Website and Contact Information==		==Website and Contact Information==
	* Website: www.isdb.org (Islamic Development Bank, n.d.-a)		* Website: www.isdb.org (Islamic Development Bank, n.d.-a)<ref>Islamic Development Bank. (n.d.-a). Empowering people, building communities. https://www.isdb.org</ref>
	* Address: 8111 King Khalid Street, Al Nazla Al Yamaniyah District, Unit No. 1, Jeddah 22332-2444, Saudi Arabia ~~(Islamic Development Bank, n.d.-b)~~		* Address: 8111 King Khalid Street, Al Nazla Al Yamaniyah District, Unit No. 1, Jeddah 22332-2444, Saudi Arabia
	* Phone: +966 12 6361400 ~~(Islamic Development Bank, n.d.-b)~~		* Phone: +966 12 6361400
	* Fax: +966 12 6366871 (Islamic Development Bank, n.d.-b)		* Fax: +966 12 6366871
	* Email: [email protected] (Islamic Development Bank, n.d.-b)		* Email: [email protected] (Islamic Development Bank, n.d.-b)<ref>Islamic Development Bank. (n.d.-b). Contact. https://www.isdb.org/who-we-are/contact</ref>

	==Prominent Research Figures==		==Prominent Research Figures==
	The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023). From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018).		The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023). From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.

	==Key Fields of Concentration (Research)==		==Key Fields of Concentration (Research)==
	The IsDB and IRTI focus on several key research areas highly relevant to Iran:		The IsDB and IRTI focus on several key research areas highly relevant to Iran:
	* Islamic economics, banking, and finance, including the development of Shariah-compliant financial models and instruments (Islamic Development Bank, 2018).		* Islamic economics, banking, and finance, including the development of Shariah-compliant financial models and instruments (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (2018). IDB in Brief. https://www.isdb.org/sites/default/files/media/documents/2018-12/IDB_In_Brief_1423H.pdf</ref>.
	* Infrastructure development, water sanitation, energy, and urban services, which are priorities in Iran’s IsDB-funded projects (Financial Tribune, 2018).		* Infrastructure development, water sanitation, energy, and urban services, which are priorities in Iran’s IsDB-funded projects (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* Poverty alleviation, sustainable development, and capacity building, reflecting the broader mission of fostering social and economic progress in the Islamic world (Financial Tribune, 2018).		* Poverty alleviation, sustainable development, and capacity building, reflecting the broader mission of fostering social and economic progress in the Islamic world (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* Training and human capital development in Islamic finance, with IRTI providing both in-person and online courses accessible to Iranian professionals (Financial Tribune, 2018).		* Training and human capital development in Islamic finance, with IRTI providing both in-person and online courses accessible to Iranian professionals (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.

	==Relations to the Islamic World==		==Relations to the Islamic World==
	IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018; Sinabank, 2023). The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023).		IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>; Sinabank, 2023). The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023).

	==Publishing / Significant Reports==		==Publishing / Significant Reports==
	The IsDB and IRTI publish a range of research outputs, including:		The IsDB and IRTI publish a range of research outputs, including:
	* The refereed bi-annual journal "Islamic Economic Studies," published in Arabic, English, and French, which disseminates research on Islamic economics and finance (Islamic Development Bank, 2018).		* The refereed bi-annual journal "Islamic Economic Studies," published in Arabic, English, and French, which disseminates research on Islamic economics and finance (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (2018). IDB in Brief. https://www.isdb.org/sites/default/files/media/documents/2018-12/IDB_In_Brief_1423H.pdf</ref>.
	* Annual Reports, such as the IsDB Annual Report 2023, which detail the Bank’s operations, research findings, and financial statements (IsDB, 2023).		* Annual Reports, such as the IsDB Annual Report 2023, which detail the Bank’s operations, research findings, and financial statements (IsDB, 2023).
	* Country Economic Work reports, including the "Diagnosing Iranian Economy" book, which compiles background documents for Iran’s Member Country Partnership Strategy (MCPS) (Financial Tribune, 2018).		* Country Economic Work reports, including the "Diagnosing Iranian Economy" book, which compiles background documents for Iran’s Member Country Partnership Strategy (MCPS) (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* Seminar proceedings and technical papers that inform policy and practice in member countries (Islamic Development Bank, 2018).		* Seminar proceedings and technical papers that inform policy and practice in member countries (Islamic Development Bank, 2018)<ref>Islamic Development Bank. (2018). IDB in Brief. https://www.isdb.org/sites/default/files/media/documents/2018-12/IDB_In_Brief_1423H.pdf</ref>.

	==Impacts and Partnerships==		==Impacts and Partnerships==
	IsDB’s impact in Iran is significant:		IsDB’s impact in Iran is significant:
	* Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018).		* Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018).		* The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018)<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>.
	* IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018; Sinabank, 2023).		* IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018<ref>Financial Tribune. (2018, October 16). Interview: Iran Integral to Islamic Development Bank Operations. https://financialtribune.com/articles/economy-business-and-markets/77825/interview-iran-integral-to-islamic-development-bank</ref>; Sinabank, 2023).
	* The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).		* The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).

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	* Email: [email protected] (Islamic Development Bank, n.d.-b)		* Email: [email protected] (Islamic Development Bank, n.d.-b)

	Prominent Research Figures		==Prominent Research Figures==
	The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023). From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018).		The Islamic Development Bank (IsDB) conducts much of its research and knowledge-generation activities through the Islamic Research and Training Institute (IRTI). While specific individual researchers are less frequently highlighted, the IRTI’s leadership and its collaborative international network are central to its research output (Islamic Development Bank, 2018). The IsDB Group’s Chief Economist and the President, Dr. Muhammad Al Jasser, are prominent figures overseeing research directions and annual reporting (IsDB, 2023). From Iran’s perspective, Iranian representatives on the IsDB Board of Executive Directors and the deputy economy minister for banking affairs play key roles in shaping research priorities relevant to Iran (Financial Tribune, 2018).
	Key Fields of Concentration (Research)
			==Key Fields of Concentration (Research)==
	The IsDB and IRTI focus on several key research areas highly relevant to Iran:		The IsDB and IRTI focus on several key research areas highly relevant to Iran:
	• Islamic economics, banking, and finance, including the development of Shariah-compliant financial models and instruments (Islamic Development Bank, 2018).		* Islamic economics, banking, and finance, including the development of Shariah-compliant financial models and instruments (Islamic Development Bank, 2018).
	• Infrastructure development, water sanitation, energy, and urban services, which are priorities in Iran’s IsDB-funded projects (Financial Tribune, 2018).		* Infrastructure development, water sanitation, energy, and urban services, which are priorities in Iran’s IsDB-funded projects (Financial Tribune, 2018).
	• Poverty alleviation, sustainable development, and capacity building, reflecting the broader mission of fostering social and economic progress in the Islamic world (Financial Tribune, 2018).		* Poverty alleviation, sustainable development, and capacity building, reflecting the broader mission of fostering social and economic progress in the Islamic world (Financial Tribune, 2018).
	• Training and human capital development in Islamic finance, with IRTI providing both in-person and online courses accessible to Iranian professionals (Financial Tribune, 2018).		* Training and human capital development in Islamic finance, with IRTI providing both in-person and online courses accessible to Iranian professionals (Financial Tribune, 2018).
	Relations to the Islamic World
			==Relations to the Islamic World==
	IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018; Sinabank, 2023). The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023).		IsDB serves as a key multilateral institution uniting 57 Muslim-majority member countries, including Iran, in pursuit of shared development goals (Islamic Development Bank, 2018). Iran is the third largest shareholder in IsDB and actively participates in its governance and strategic direction, which strengthens its ties with other Islamic countries (Financial Tribune, 2018; Sinabank, 2023). The Bank is also a platform for cooperation between Iran and Saudi Arabia, particularly after the normalization of diplomatic relations, facilitating joint projects and investments (Sinabank, 2023).
	Publishing / Significant Reports
			==Publishing / Significant Reports==
	The IsDB and IRTI publish a range of research outputs, including:		The IsDB and IRTI publish a range of research outputs, including:
	• The refereed bi-annual journal "Islamic Economic Studies," published in Arabic, English, and French, which disseminates research on Islamic economics and finance (Islamic Development Bank, 2018).		* The refereed bi-annual journal "Islamic Economic Studies," published in Arabic, English, and French, which disseminates research on Islamic economics and finance (Islamic Development Bank, 2018).
	• Annual Reports, such as the IsDB Annual Report 2023, which detail the Bank’s operations, research findings, and financial statements (IsDB, 2023).		* Annual Reports, such as the IsDB Annual Report 2023, which detail the Bank’s operations, research findings, and financial statements (IsDB, 2023).
	• Country Economic Work reports, including the "Diagnosing Iranian Economy" book, which compiles background documents for Iran’s Member Country Partnership Strategy (MCPS) (Financial Tribune, 2018).		* Country Economic Work reports, including the "Diagnosing Iranian Economy" book, which compiles background documents for Iran’s Member Country Partnership Strategy (MCPS) (Financial Tribune, 2018).
	• Seminar proceedings and technical papers that inform policy and practice in member countries (Islamic Development Bank, 2018).		* Seminar proceedings and technical papers that inform policy and practice in member countries (Islamic Development Bank, 2018).
	Impacts and Partnerships
			==Impacts and Partnerships==
	IsDB’s impact in Iran is significant:		IsDB’s impact in Iran is significant:
	• Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018).		* Over 270 projects have been approved in Iran since 1976, with a portfolio valued at approximately $7.4 billion, spanning infrastructure, agriculture, energy, and industry (Financial Tribune, 2018).
	• The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018).		* The Bank’s financing supports major development projects, such as the Gharesso-Zaringol Irrigation and Drainage Network, which enhances agricultural productivity and poverty reduction (Financial Tribune, 2018).
	• IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018; Sinabank, 2023).		* IsDB’s partnerships with Iranian ministries, the private sector, and international organizations foster knowledge exchange, technical assistance, and investment (Financial Tribune, 2018; Sinabank, 2023).
	• The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).		* The IRTI’s training programs and conferences, including those held in Tehran, have contributed to the development of Islamic banking expertise in Iran (Financial Tribune, 2018).
	Critique of IsDB’s Work and Hidden Objectives from Iran’s Perspective
			==Critique of IsDB’s Work and Hidden Objectives from Iran’s Perspective==
	1. Political Influence and Sectarian Bias		1. Political Influence and Sectarian Bias

	Research indicates that the IsDB’s aid allocation and financing may be influenced by the Sunni-Shia divide, with Saudi Arabia—holding the largest share in the Bank—using IsDB resources to promote Sunni political interests. This has led to perceptions that IsDB development aid favors Sunni-majority countries or Sunni factions within member states, sometimes at the expense of Shiite communities, including Iran’s regional allies (Hernandez & Vadlamannati, 2013). For example, Saudi Arabia reportedly used IsDB aid to support Sunni governments and factions in countries like Sudan, Yemen, Lebanon, and Bahrain, which complicates Iran’s relations with the Bank and raises concerns about hidden geopolitical objectives behind IsDB financing (Hernandez & Vadlamannati, 2013).		Research indicates that the IsDB’s aid allocation and financing may be influenced by the Sunni-Shia divide, with Saudi Arabia—holding the largest share in the Bank—using IsDB resources to promote Sunni political interests. This has led to perceptions that IsDB development aid favors Sunni-majority countries or Sunni factions within member states, sometimes at the expense of Shiite communities, including Iran’s regional allies (Hernandez & Vadlamannati, 2013). For example, Saudi Arabia reportedly used IsDB aid to support Sunni governments and factions in countries like Sudan, Yemen, Lebanon, and Bahrain, which complicates Iran’s relations with the Bank and raises concerns about hidden geopolitical objectives behind IsDB financing (Hernandez & Vadlamannati, 2013).

	2. Challenges in Islamic Banking Implementation		2. Challenges in Islamic Banking Implementation

	From Iran’s internal viewpoint, Islamic banking—including that supported by institutions like IsDB—faces significant systemic challenges. These include governmental attitudes that sometimes hinder the full realization of Shariah-compliant banking, lack of competition, insufficient Shariah supervision, and absence of standardized accounting and auditing frameworks (Jalilvand & Samiei, 2020). Such issues limit the effectiveness of Islamic finance initiatives promoted by IsDB in Iran and other member states, raising questions about the practical impact of IsDB’s financial models.		From Iran’s internal viewpoint, Islamic banking—including that supported by institutions like IsDB—faces significant systemic challenges. These include governmental attitudes that sometimes hinder the full realization of Shariah-compliant banking, lack of competition, insufficient Shariah supervision, and absence of standardized accounting and auditing frameworks (Jalilvand & Samiei, 2020). Such issues limit the effectiveness of Islamic finance initiatives promoted by IsDB in Iran and other member states, raising questions about the practical impact of IsDB’s financial models.

	3. Criticism of Shariah Compliance and Economic Impact		3. Criticism of Shariah Compliance and Economic Impact

	Iranian scholars have critically reviewed the Islamic banking system’s operations, noting deviations from true profit-and-loss sharing principles and the persistence of interest-like mechanisms under different contract names, which may undermine the ethical foundations of Islamic finance promoted by IsDB (Zarghani, 2021). This critique extends to IsDB’s financing practices, suggesting that despite its Islamic mandate, the Bank’s financial products sometimes fail to fully embody Islamic economic justice ideals valued in Iran.		Iranian scholars have critically reviewed the Islamic banking system’s operations, noting deviations from true profit-and-loss sharing principles and the persistence of interest-like mechanisms under different contract names, which may undermine the ethical foundations of Islamic finance promoted by IsDB (Zarghani, 2021). This critique extends to IsDB’s financing practices, suggesting that despite its Islamic mandate, the Bank’s financial products sometimes fail to fully embody Islamic economic justice ideals valued in Iran.

	4. Limited Autonomy and Influence		4. Limited Autonomy and Influence

	Although Iran is a major shareholder in IsDB, the dominance of Saudi Arabia and other Gulf states in decision-making processes may limit Iran’s influence over the Bank’s strategic priorities and project selections. This power imbalance fuels skepticism in Iran regarding the Bank’s neutrality and whether it genuinely serves the development needs of all Muslim countries equally (Hernandez & Vadlamannati, 2013).		Although Iran is a major shareholder in IsDB, the dominance of Saudi Arabia and other Gulf states in decision-making processes may limit Iran’s influence over the Bank’s strategic priorities and project selections. This power imbalance fuels skepticism in Iran regarding the Bank’s neutrality and whether it genuinely serves the development needs of all Muslim countries equally (Hernandez & Vadlamannati, 2013).

			==References==