ALGIERS, Algeria, May 22. The Annual Meetings of the Islamic Development Bank Group (IsDB) in Baku will serve as a critical platform for IsDB member countries and global partners to address urgent development challenges, particularly in fragile and conflict-affected contexts, which account for over half of the Bank’s membership, the Chairman of the Islamic Development Bank Group Dr. Muhammad Al Jasser said in an exclusive interview with Trend on the sidelines of the IsDB Annual Meetings in Algiers.
He noted that the meetings will focus on mobilizing resources and enhancing collaboration to address climate shocks, infrastructure deficits, and human development needs.
“Regional trade and integration will be a central theme, aligned
with Azerbaijan’s aspirations. This includes advancing cross-border
infrastructure, digital connectivity, trade facilitation, and
support for SMEs through e-commerce platforms.
The meetings’ outcomes are expected to inform strategic directions
that feed into the implementation of the IsDB Group’s Ten-Year
Strategic Framework (2026–2035), with regional integration as a key
pillar,” the IsDB Group’s president said.
Al Jasser announced that the discussions will emphasize long-term structural transformation for resilience and sustainable development, particularly in the context of a volatile global economic environment.
“Key thematic areas to be prioritized include economic
diversification, digital transformation, energy transition, and
regional cooperation—areas where Azerbaijan plays a strategic
role.
The Annual Meetings will also set the stage for operationalizing
the new Strategic Framework, focusing not only on vision but also
on practical means of implementation, follow-up, and partnerships
that extend beyond Baku,” he said.
New areas for deepening cooperation between
Azerbaijan and the IsDB Group
Al Jasser recalled that IsDB launched the Country Engagement
Framework for Azerbaijan in early 2024.
“Under this Framework, we signed the first project to support food security as well as the development of Karabakh on the sidelines of COP29 in November 2024. We are in discussion with the country to support several new initiatives, including the development of regional Energy Corridors, the Alat Free Economic Zone, and potential irrigation projects in Karabakh,” he said.
IsDB president noted that the Bank is also keen to partner with Azerbaijan to promote South-South Cooperation.
“Recently, a Technical Assistance grant was signed between the Central Bank of Azerbaijan and the IsDBInstitute to promote Islamic finance. Another Technical Assistanceagreement was signed recently to promote cooperation between Pakistan and Azerbaijan for the development of high-yielding cotton varieties,” he said.
Tangible outcomes from 2025 Annual Meetings in
Algiers
Al Jasser pointed out that these Annual Meetings are not merely a
technical or formal event, but also a dynamic platform for concrete
actions.
“The meetings saw the adoption of the new strategic Framework, the signing of several agreements and partnerships, and the launch of financing and development initiatives targeting high-potential sectors. The meetings provided a rare opportunity for leaders, decision-makers, and stakeholders to gather in Algeria and discuss innovative solutions to the challenges of economic diversification in the Islamic world. Looking ahead, we are fully committed to advancing digital transformation, developing financial technology (Fintech), and investing in smart infrastructure to make our economies more efficient, sustainable, and inclusive,” he said.
The IsDB president noted that the Bank will also move forward with the implementation of the adopted recommendations and the follow-up on declared commitments.
“Additionally, we will assess the impact of the initiatives and develop a clear implementation roadmap in close collaboration with member countries,” he said.
Al Jasser noted that over this week, the IsDB hosted numerous
high-level meetings, the flagship Private Sector Forum and more
than 10 side events, featuring eminent thought leaders, academics,
and development practitioners.
“We welcomed more than 4000 participants, representing 89
countries and 70 institutions.
These interactions provided a vital platform for open dialogue,
strategic partnerships, and innovative collaborations—both public
and private. I am pleased to announce the signing of more than 70
agreements totaling nearly US$ 5 billion, with 26 member countries
and several regional institutions. These agreements cover critical
sectors and reaffirm our determination to deliver concrete,
high-impact development solutions,” he said.
Bank’s next steps in implementing the insights and
partnerships forged during the 2025 Meetings
Al Jasser noted that the Islamic Development Bank is committed to
turning discussions into tangible actions that support global
development goals.
“This involves developing action plans that convert insights into concrete initiatives and development projects. The Bank will strengthen partnerships with member countries, private sector actors, and other development organizations to maximize the use of resources and expertise,” he said.
The IsDB president pointed out that funding will be prioritized for key development sectors to ensure strategic and impactful resource allocation.
“The Bank will engage actively with stakeholders to gather
feedback and ensure that its initiatives are aligned with local
needs and priorities. It will promote the exchange of knowledge and
best practices among countries to foster innovation and enhance
learning in development efforts.
The IsDB also aims to strengthen its monitoring and evaluation
frameworks to track progress and assess the impact of its
strategies and programs.
Finally, it will invest in capacity-building initiatives to empower
countries with the skills and tools necessary for effective program
implementation,” he said.
Impact of economic diversification on long-term
resilience and prosperity across member countries
Al Jasser noted that economic diversification is not merely an
option; it is an urgent necessity for enhancing economic resilience
and achieving shared prosperity.
“By reducing reliance on natural resources, diversification helps stabilize economies against external shocks and opens new horizons for innovation, the digital economy, and service-oriented sectors. To truly realize this vision, we must actively explore new sectors, strengthen regional and global value chains, and create more inclusive economic opportunities in Algeria and across all member countries. Through strategic investment and collaboration, diversification becomes a catalyst for long-term, sustainable development,” he said.
Islamic finance as a catalyst for inclusive growth,
particularly in countries like Algeria
The IsDB president pointed out that Algeria has strong potential to
use Islamic finance as a driver for inclusive economic growth,
given its middle-income status, predominantly Muslim population,
and a large informal economy exceeding 30% of GDP.
“A robust Islamic finance sector in Algeria could help integrate underserved populations into the formal financial system, mobilize domestic savings, improve capital allocation, and diversify financial risks. Economists increasingly agree that the structure of the financial system—whether bank-based or market-based—is less critical to growth than its effectiveness in financial intermediation. Evidence from the GCC and Malaysia shows that Islamic finance can be a catalyst for economic development. Algeria shares similar structural characteristics such as a hydrocarbon-based economy, a Muslim-majority population, and political stability,” said Al Jasser.
He believes that if Algeria adopts a development path for Islamic finance similar to that of the GCC countries, it may achieve comparable economic benefits.
“Islamic banking in Algeria could grow rapidly, as it would
offer financial services to population segments that typically
avoid conventional banking, thereby increasing financial inclusion
and supporting faster economic growth,” he said.
IsDB Group’s efforts to ensure that youth and women are
at the center of development strategies
“Through the exchange of experiences and best practices, we can
co-create practical, scalable solutions that unlock new
opportunities, particularly for youth and women, who represent a
vital force for innovation and social progress. These exchanges not
only foster learning and collaboration across borders but also
encourage inclusive policy design and the localization of
successful models that have proven effective in other contexts.
Empowering women and youth is central to our development approach. We are committed to supporting comprehensive training programs, promoting entrepreneurship, and expanding access to finance and digital tools. By equipping women with the resources and skills they need to participate fully in the economy and by nurturing the entrepreneurial spirit of young people, we aim to build more inclusive and resilient societies,” said Al Jasser.
The IsDB president noted that climate change, despite being one of the most pressing global challenges of our time, also presents a unique opportunity.
“Rather than viewing it solely as a risk, we are determined to
transform it into a driver of innovation and sustainable growth.
Through strategic investments in renewable energy, green
infrastructure, and climate-smart technologies, we can not only
mitigate environmental threats but also create new green jobs,
enhance energy security, and build climate-resilient economies
across our member countries,” he said.
IsDB’s plans to harness innovation, digitalization, and
fintech to drive future economic growth
“As millions of young people enter the labor market in Algeria and
across our member countries, the IsDB Group recognizes the urgency
of creating inclusive, future-ready economies. We are committed to
empowering youth by fostering entrepreneurship, expanding access to
digital skills, and investing in the digital economy. This approach
not only creates sustainable employment opportunities but also
equips our societies with the tools to thrive in a rapidly changing
global landscape,” he said.
Al Jasser pointed out that innovation is a key enabler of resilience and competitiveness.
“By promoting research, supporting start-ups, and encouraging technology adoption, we can unlock new sources of growth and improve the ability of our member countries to adapt to emerging global challenges, such as climate change, supply chain disruptions, and shifting labor markets. Moreover, digital transformation holds immense potential to improve the efficiency, accessibility, and transparency of public services—from healthcare and education to social protection and financial inclusion. The IsDB Group is actively supporting investments in smart infrastructure, e-government platforms, and inclusive digital ecosystems,” said the IsDB president.
He noted that financial technology (fintech), in particular, offers powerful tools to expand access to financial services for underserved communities, especially women and small businesses.
“By leveraging fintech solutions, we aim to promote financial inclusion, enhance access to capital, and facilitate cross-border trade and investment. Looking ahead, our strategy integrates innovation and digitalization across all sectors—whether in agriculture, energy, manufacturing, or education—ensuring that our member countries can harness technology not only for growth, but also for inclusive and sustainable development,” Al Jasser concluded.