Islamic Corporation for the Development of the Private Sector
The Islamic Corporation for the Development of the Private Sector fosters the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Shari’ah, Islamic Law.
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral organization affiliated with the Islamic Development Bank (IDB) Group. Its authorized capital stands at $2.0 billion, of which $1.0 billion is available for subscription. The current subscribed and paid-in capital is $875 million and $568 million respectively. Its shareholders consist of the IDB, 51 member countries, and five public financial institutions. Headquarters in Jeddah, ICD was established by the IDB Board of Governors during its 24th annual meeting held in Jeddah in Rajab 1420H (November 1999).
The mandate of ICD is to support economic development of its member countries by providing financial assistance to private sector projects in accordance with the principles of Shari’a law, aimed at creating employment opportunities and enhancing their export potential. Furthermore, ICD has the mandate of mobilizing additional resources for projects and encouraging development of Islamic finance. It also attracts co-financiers for its projects and provides advice to governments and private sector groups on policies aimed at encouraging the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhancing the role of market economy. ICD operates to complement the activities of IDB in member countries and also that of national financial institutions.
ICD has a unique position in that it offers three sets of Shari’a-compliant business products and services to its private sector clients in member countries. These global business products are:
Financing & Investment Products
ICD’s mandate to serve the private sector of member countries is carried out through a variety of different products. It provides both term financing and equity contribution to private sector Greenfield projects or those that are undergoing expansion or modernization. ICD also extends short-term financing to cover working capital or procure raw materials with a tenor of up to 24 months. Furthermore, it extends lines of financing to commercial banks and local development
financing institutions in member countries in order to indirectly finance their small and medium enterprises (SMEs). At the same time, it structures, arranges and manages syndication and securitization.
ICD provides a wide variety of advisory services to governments, and public and private entities of member countries. The services include assessing the business environment of member countries along with any required reform actions. It also provides advisory services for project financing, restructuring/rehabilitation of companies, privatization, securitization, Islamic finance and the development of Islamic capital markets, particularly sukuk.
ICD sponsors, manages (as Mudarib) and participates in private equity funds and other special purpose investment vehicles designed to invest in or finance projects in accordance with its mandate.