Statute of IsDBI

The Board of Executive Directors of the Islamic Development Bank:

Having regard to paragraphs (x) and (xi) of Article 2 of the Articles of Agreement of the Islamic Development Bank;
In conformity with paragraph (a) of Resolution No. BG/14-99 of the Board of Governors adopted at its Third Annual Meeting held on 10th Rabi al-Thani, 1399H corresponding to 14 March 1979;
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;
In the 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 amends the Statute of the Islamic Development Bank Institute dated 12 Ramadan 1442, 24 April 2021.

2. Definitions

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

“Articles of Agreement”	The Articles of Agreement the Islamic Development Bank.
“Bank”	The Islamic Development Bank.
“Board of Executive Directors”	The Board of Executive Directors of the Islamic Development Bank.
“Board of Governors”	The Board of Governors of the Institute.
“Board of Trustees”	The Board of Trustees of the Institute shall be constituted in accordance with Article 9(1) of this Statute.
“Director General”	The Director-General of the Islamic Development Bank Institute of the Islamic Development Bank Group.
“Group”	The Islamic Development Bank Group.
“Institute”	The Islamic Development Bank Institute.
“Management”	The Management of the Institute.
“Member Countries”	The Member Countries of the Islamic Development Bank.
“President”	The President of the Bank, Ex-officio President of the Islamic Development Bank Institute.

3. 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 President, 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.

4. Purpose

The Institute, as the Think Tank of the Group, shall serve as the knowledge beacon of the Group, with the mandate to lead the activities that aim to develop innovative knowledge-based solutions to support the sustainable economic advancement of Islamic economics and finance as a catalyst for sustainable development in Member Countries and worldwide.

5. Functions and Powers

The Institute shall have the following functions and powers to serve its purpose:

Conduct and coordinate pioneering research to develop knowledge-based applications for Islamic finance and banking to support the sustainable development of Member Countries;
Undertake original analysis of issues related to Islamic economics and finance and provide thought leadership on relevant economic and development challenges to support the Group’s activities and the development community;
Build human capital to lead economic and Islamic finance development and nurture entrepreneurial capacities of the youth in Member Countries;
Lead providing and coordinating advisory, technical assistance, and consultancy services for enabling ecosystems for Islamic economics and finance;
Create, disseminate, and manage knowledge and information in the fields relevant to the purpose of the Institute; and
Undertake any other activities which may advance its purpose.

6. Structure of the Institute

The Institute shall have 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.

7. The President

7.1 The President shall be the legal representative of the Institute.

7.2 The President may introduce amendments to the rules of the Institute in line with the Purpose and Functions of the Institute and without prejudice to the powers of the Board of Executive Directors.

7.3 The President, after consultation with the Board of Trustees, recommends to the Board of Executive Directors the approval of the Institute’s yearly and medium-term work program and the associated budget.

8. The Board of Trustees

8.1 The Institute shall have a Board of Trustees which shall be constituted as follows:

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

8.2 The Member of the Board of Trustees referred to in sub-paragraph (b) above shall be appointed by the Board of Executive Directors.

8.3 Members of the Board of Trustees referred to in sub-paragraphs (c), (d), and (e) above shall be appointed by the President in consultation with the Board of Executive Directors.

8.4 The term of office of the members of the Board of Trustees, except ex-officio members, shall be three years renewable one time only.

8.5 The Board of Trustees is responsible for providing guidance and direction on the Institute’s strategy, medium-term work program, and required budget.

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

8.7 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.

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

(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.

9. The Director General

9.1 The Institute shall have a Director General who shall be appointed by the President.

9.2 The terms of employment of the Director General shall be determined by the President in line with the relevant regulations, rules, and procedures of the Bank.

9.3 The Director General shall be responsible to the President for the discharge of his powers and duties.

9.4 The Director General shall be responsible for:

(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.
(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) Building a virtual global network of scholars in relevant fields, leveraging on innovative digital technologies.
(f) Attracting relevant scholarly talents and exercising skillful management of the Institute and its Human Resources.
(g) Formulating the Institute’s strategy, yearly and medium-term work program, and required budget for submission to the Board of Trustees and the Board of Executive Directors.
(h) Preparation and implementation of the Institute’s annual work program and budget.
(i) Preparation of an annual report on the activities of the Institute and submitting it to the Board of Trustees and the Board of Executive Directors.

10. Resources and Finance of the Institute

10.1 The Institute shall be funded from the following sources:

(a) Allocation received from the net income of the Bank’s Waqf Fund and of the Bank’s 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, including advisory and consultancy 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.

10.2 In line with 7.3 above, the annual budget of the Institute shall be approved by the Board of Executive Directors.

11. Audit of Accounts

11.1 The Financial Year of the Institute shall be the financial year of the Bank.

11.2 The external auditors of the Bank shall annually audit the accounts of the Institute.

11.3 On the basis of the audit, the Board of Executive Directors shall clear the Financial Statement of the Institute and submit the same to the Board of Governors for approval.

12. Application of Chapter VII of the Articles of Agreement and Regulations and Rules of the Bank

12.1 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.

12.2 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 in line with 7.2 above.