Statute of IsDBI

Approved by the IsDB Board of Executive Directors in its

340th Meeting, 12 Ramadan 1442H (24 April 2021)

 

The Board of Executive Directors of the Islamic Development Bank:

  1. Having regard to paragraph (x) and (xi) of Article 2 of the Articles of Agreement of the Islamic Development Bank;
  2. In conformity with paragraph (a) of the Resolution No. BG/14-99 of the Board of Governors adopted at its Third Annual Meeting held on 10th Rabi ul-Thani, 1399H corresponding to 14 March 1979;
  3. Pursuant to paragraph (3) of Article 29 and paragraph (4) of Article 30 of the Articles of Agreement and Section 10 of the By-Laws of the Bank;
  4. In implementation of the aforementioned Resolution of the Board of Governors;

Hereby adopts the following Statute:

    1. Title and Commencement
      This Statute shall be known as “The Statute of the Islamic Development Bank Institute” and shall enter into force as of the date of adoption. This Statute replaces the Statute of the Islamic Research and Training Institute dated 27-04-1981 (23-05-1401H) and amended on 10-09-2007 (27-08-1428H).

 

  1. Definitions
    In this Statute, unless the context otherwise requires, the following terms shall have the meaning assigned to each of them here-under:

    1. “Articles of Agreement”: The Articles of Agreement establishing the Islamic Development Bank.
    2. “Bank”: The Islamic Development Bank.
    3. “Board of Executive Directors”: The Board of Executive Directors of the Islamic Development Bank.
    4. “Board of Governors”: The Board of Governors of the Institute.
    5. “Board of Trustees”: The Board of Trustees of the Institute which shall be constituted in accordance with Article 9(1) of this Statute.
    6. “Director General”: The Director-General of the Islamic Development Bank Institute and Chief Economist of the Islamic Development Bank Group.
    7. “Group”: The Islamic Development Bank Group.
    8. “Institute”: The Islamic Development Bank Institute.
    9. “Management”: The Management of the Institute.
    10. “Member Countries”: The Member Countries of the Islamic Development Bank
    11. “President”: The President of the Bank, Ex-officio President of the Islamic Development Bank Institute.
    12. “Special Fund”: The Special Fund for the IsDB Institute.

 

  1. Establishment of the Institute
    3.1. There is hereby established in the City of Jeddah an Institute and Member of the Group to be known as “The Islamic Development Bank Institute”.
    3.2 The Institute, through the Director General, shall have the capacity to:
    (a) contract;
    (b) acquire and dispose of movable and immovable property;
    (c) deal directly with third parties; and
    (d) take any legal action necessary to the performance of its functions.
    3.3 The Institute shall be a successor to the Islamic Research and Training Institute established under the previous Statute.

 

  1. Purpose
    The Institute shall serve as the knowledge beacon of the Group, with the mandate to lead the development of innovative knowledge-based solutions to support the sustainable economic advancement of Member Countries and Muslim communities worldwide, guided by the principles of Islamic economics and finance.

 

  1. Functions and Powers
    The Institute shall have the following functions and powers to serve its purpose:
    5.1 Conduct and coordinate pioneering research to develop knowledge-based solutions for economic challenges facing Member Countries;
    5.2 Undertake original economic analysis and provide thought leadership on economic and development challenges to support the Group’s activities and the development community;
    5.3 Build human capital to lead economic development and nurture entrepreneurial capacities of the youth in Member Countries;
    5.4 Create, disseminate, and manage knowledge and information in the fields relevant to the purpose of the Institute;
    5.5 Lead advisory, technical assistance, and consultancy services for enabling ecosystems for Islamic economics and finance; and
    5.6 Undertake any other activities which may advance its purpose.

 

  1. Structure of the Institute
    The Institute shall have a Board of Governors, a President, a Board of Trustees, a Director General, and such other officers and staff as may be necessary to perform such duties as the Institute may determine.

 

  1. The Board of Governors
    7.1 The Board of Governors shall be composed of Governors or Alternate Governors of the Bank.
    7.2 The Chairman of the Board of Governors of the Islamic Development Bank shall be the ex-o­fficio Chairman of the Board of Governors of the Institute.
    7.3 All powers of the Institute shall be vested in the Board of Governors.
    7.4 The Board of Governors may delegate to the President any or all of its powers relating to the general operations of the Institute.
    7.5 The Board of Governors shall hold an annual meeting, in conjunction with the Annual Meeting of the Bank, and such other meetings as may be deemed necessary by the President.

 

  1. The President
    8.1 The President of the Islamic Development Bank shall be the ex-officio President of the Institute.
    8.2 The President may, in consultation with the Board of Trustees, introduce amendments on the rules and regulations of the Institute in line with the Purpose and Functions of the Institute and without prejudice to the powers of the Board of Governors.
    8.3 The President shall, in consultation with the Board of Trustees, approve the Institute’s medium-term work program and the associated budget.

 

  1. The Board of Trustees
    9.1 The Institute shall have a Board of Trustees which shall be constituted as follows:

    1. a) The President of the Islamic Development Bank, who shall be the ex-officio Chairman of the Board of Trustees.
      b) Three members from the Board of Executive Directors of the Bank.
      c) Three members from among the officials of the relevant institutions in the Member Countries.
      d) Three experts of outstanding reputations in the fields relevant to the Institute’s functions.
      e) The Director General of the Institute, who shall also serve as the Secretary of the Board of Trustees.

    9.2 Members of the Board of Trustees referred to in sub-paragraphs (b), (c), and (d) above shall be appointed by the President in consultation with the Board of Executive Directors.
    9.3 The term of office of the members of the Board of Trustees shall be renewable three years (except ex-officio members).
    9.4 The Board of Trustees is responsible for providing guidance and direction on the Institute’s strategy, medium-term work program and required budget.

    9.5 The Board of Trustees shall meet at least once a year.

    9.6 The President shall determine the remuneration and expenses to be paid to the members of the Board of Trustees for attending meetings or carrying out tasks entrusted to them by the Director General or the President.

    9.7 The functions of the Board of Trustees shall be as follows:

    1. a) To provide guidance and direction to the Management on the Institute’s strategic direction and medium-term work program.
      b) To review the annual performance and financial statements of the Institute.
      c) To assist in mobilizing resources for the Institute if and when needed.
      d) To perform any other functions as may be deemed necessary for achieving the objectives of the Institute.

 

  1. The Director General
    10.1 The Institute shall have a Director General who shall be appointed by the President in consultation with the Board of Trustees.10.2 The Director General shall be the Chief Executive Officer of the Institute and Chief Economist of the Islamic Development Bank Group.
    10.2 The Director General shall hold office for a term of three years renewable with the condition that the maximum period be nine years in total.
    10.3 The Director General shall be responsible to the President for the discharge of his powers and duties.
    10.4 The Director General shall be the legal representative of the Institute.

    10.5 The Director General shall be responsible for:

    1. a) Ensuring that the functions of the Institute as described in Article 5 of this Statute are implemented to achieve the purpose of the Institute in a smooth and efficient manner.
    2. b) Providing thought leadership and guidance in analytical research, economic issues, and development trends to support the Group’s operations

      c) Coordinating the Group’s initiatives for knowledge creation, management and dissemination, and capacity building.

      d) Supporting the Group in formulating views and adopting positions on key development challenges facing the Member Countries

      e) Formulating the Institute’s strategy, medium-term work program and required budget for submission to the Board of Trustees.

      f) Preparation and implementation of the Institute’s annual work program and budget.

      g) Preparation of an annual report on the activities of the Institute and submitting it to the Board of Trustees.

 

  1. Finance of the Institute
    11.1 The President shall establish the “Special Fund for the IsDB Institute” to finance the expenses of the Institute and ensure its financial sustainability.
    11.2 The Special Fund shall be funded from the following sources:

    1. a) The net income of the IsDB Waqf Fund and of the IsDB Ordinary Capital Resources (OCR);
      b) Resources allocated by the Board of Governors or the Board of Executive Directors, including the Special Allocation to Develop the Islamic Financial Services Industry;
      c) Rents paid for the use of the Institute’s facilities;
      d) Fees and income received in return for the Institute’s knowledge products and services; and
      e) Unconditional grants and donations which the President may accept, and conditional grants and donations which the Board of Trustees, on the recommendation of the President, may accept.

    11.3 The Special Fund shall be supervised by a Committee to be established by the President, and shall be constituted as follows:

    1. a) The Chairman of the Special Fund Committee, who is a Member of the Board of Trustees and a Member of the Board of Executive Directors
      b) One Member of the Board of Trustees who is not a Member of the Board of Executive Directors
      c) The Director General of the Institute
      d) A representative of the Bank having relevant experience
      e) A representative of the IsDB Group having relevant experience
      f) An external expert in fund management
      g) An external expert in resource mobilization and investors’ relations

    11.4 The President shall issue the necessary regulations for the management of the Special Fund and the Special Fund Committee.

 

  1. Audit of Accounts
    The accounts of the Institute shall be audited at least once a year by the External Auditors of the Bank.

 

  1. Application of Chapter VII of the Articles of Agreement and Regulations and Rules the Bank
    13.1 The property, assets, and personnel of the Institute shall be accorded the immunities, exemptions, and privileges set forth in Chapter VII of the Articles of Agreement of the Bank;
    13.2 Regulations and Rules of the Bank shall apply to the Institute in all matters which are not covered by the Provisions of the Regulations and Rules pertaining to the Institute and adopted by the Board of Executive Directors.

 

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