Strengthening Ties: IsDB and IMF Collaborate for Economic Resilience and Islamic Finance

On February 14, 2025, the Islamic Development Bank (IsDB) and the International Monetary Fund (IMF) took a significant step towards enhancing their collaboration on economic resilience and Islamic finance. This historic meeting, held at IsDB Headquarters in Jeddah, marked the first visit of an IMF Managing Director to the IsDB, highlighting the importance of their partnership in addressing global economic challenges.<\/p>

• Historic Visit<\/strong>: Kristalina Georgieva, Managing Director of the IMF, visited IsDB HQ for the first time.<\/li>
• Focus on Economic Resilience<\/strong>: Discussions centered on enhancing coordination on economic priorities and solutions for vulnerable economies.<\/li>
• Joint Islamic Finance Report<\/strong>: A collaborative initiative to assess the role of Islamic finance in global markets is underway.<\/li>
• Commitment to Post-Conflict Support<\/strong>: Both institutions reaffirmed their dedication to assisting post-conflict economies.<\/li><\/ul>

The meeting was led by H.E. Dr. Muhammad Al Jasser, President of IsDB, who emphasized the necessity for deeper engagement between the two institutions. He pointed out the need for proactive strategies to tackle challenges such as economic fragmentation, demographic changes, and the digital transformation affecting emerging markets.<\/p>

One of the key outcomes of the meeting was the discussion surrounding the upcoming Joint Islamic Finance Report 2025. This report aims to evaluate the role of Islamic finance in global markets, identify regulatory challenges, and explore its potential to enhance financial inclusion and stability.<\/p>

During the discussions, Georgieva acknowledged IsDB’s significant contributions to macroeconomic stability and capacity building across its 57 member countries. She stressed the importance of policy coordination, investment in digital transformation, and sustained multilateral engagement to support emerging economies.<\/p>

Both the IsDB and IMF reiterated their commitment to supporting post-conflict and vulnerable economies. They aim to ensure that member countries receive the necessary financial and policy assistance to foster economic recovery and long-term stability.<\/p>

As part of the visit, a fireside chat was held where Georgieva and Dr. Al Jasser exchanged views on global economic challenges and the shifting geopolitical landscape. They discussed the critical role of multilateral institutions in promoting economic resilience, emphasizing the need for adaptive policies to help fragile economies rebuild and thrive.<\/p>

The meeting also reinforced the commitment to build on the Memorandum of Understanding (MoU) signed in October 2022, which laid the groundwork for joint initiatives in economic analysis, policy coordination, and capacity-building efforts.<\/p>

With a shared focus on fostering economic resilience and driving inclusive growth, both institutions are poised to strengthen their cooperation and continue providing essential support to member countries, ensuring sustained trust and long-term development.<\/p>

• IsDB and IMF Strengthen Collaboration on Economic Resilience and Islamic Finance | News | IsDB<\/a>, Islamic Development Bank.<\/li><\/ul>