TASHKENT

The Islamic Development Bank (IsDB) Group has announced $1.2 billion in funding commitments as part of its effort to support the post-pandemic economic recovery among its member countries, including Uzbekistan, Central Asia’s largest country by population.

The funding commitments, which comprise around 30 memorandums and agreements, were signed between IsDB Group entities and counterpart institutions in member countries in Africa and Asia during the bank’s 2021 Annual Meetings, held in Uzbekistan’s capital Tashkent.

IsDB’s $1.2 billion funding will support operations and projects in healthcare, water and sanitation, agriculture, transport, energy, food security and Islamic finance sectors in 10 member countries. Uzbekistan will receive $330 million of the total funding, said Muhammad Al Jasser, IsDB’s chairman.

“The COVID-19 pandemic taught us difficult lessons about the fragility of national economies in a globalised world. We are using the opportunity of our annual meetings to ensure that the power of multilateralism can help create stronger, more resilient economies in long term,” he said.

IsDB is the AAA-rated multilateral development bank of the Muslim world, with 57 member countries making up one-fifth of the world population. In 2020, the bank approved $6.8 billion in funding commitments. The bank’s response to the COVID-19 pandemic included a $4.56 billion Strategic Preparedness and Response Program (SPRP), which is estimated to have delivered economic assistance to more than 55 million people.

IsDB and Uzbekistan have also announced the launch of the Economic Empowerment Fund for Uzbekistan, established in cooperation with the country’s government and private sector investors from Saudi Arabia.

The $100 million fund aims to create 100,000 jobs by supporting micro, small, and medium-sized enterprises. It is the first impact investment fund established in Uzbekistan. Officials from both the government and the Islamic bank said that its target fund is $500 million.

IsDB’s other commitments to Uzbekistan include a $200 million investment to support economic development in rural regions of the Central Asian nation with a 34 million population. The bank also signed an agreement to finance the second phase of a project devoted to expanding access to oncology services in Uzbekistan by equipping treatment centres and expanding medical training.

The IsDB pointed to global supply chain disruptions caused by the COVID-19 pandemic, which have posed a challenge for developing countries. Prices for key commodities, including basic foodstuffs, have risen dramatically, putting the economic recovery of import-dependent countries at risk.

The Islamic Trade Finance Corporation (ITFC) will provide trade financing to several countries to support the import of strategic commodities, including energy products and foodstuffs.

Uzbekistan became a member of the IsDB in 2003. The cooperation portfolio comprises nearly 30 major investment projects totalling more than $2.5 billion.