Quick answer
A multilateral development bank serving 57 member countries of the Organisation of Islamic Cooperation, financing development projects using Shariah-compliant instruments and a regional hub system.
The Islamic Development Bank (IsDB) is a multilateral development bank headquartered in Jeddah, Saudi Arabia, serving 57 member countries of the Organisation of Islamic Cooperation (OIC) and financing development projects across education, health, infrastructure, agriculture, and private-sector development using Shariah-compliant financing instruments.
What is the IsDB?
The IsDB operates with an active portfolio exceeding $24.5 billion and signed approximately $1.43 billion in new contracts in 2024. Its mandate covers development financing across OIC member states, which span Africa, the Middle East, Central Asia, South and Southeast Asia, and South America. Unlike conventional development banks that use standard interest-bearing loans, the IsDB uses shariah-compliant-financing structures such as Murabaha (cost-plus sale), Istisna (construction finance), and Ijarah (lease-based finance).
Procurement on IsDB-financed projects follows standard MDB methods including icb, national competitive bidding, and consulting selection. Notices are published on the IsDB website (isdb.org) through a Drupal-based content management system with taxonomy-structured URLs that make systematic monitoring straightforward. The isdb-hub-system organises regional operations through offices in eight cities, enabling targeted monitoring by geography. Importantly, firms from non-member countries have participated and won contracts, with firms from 10 non-member countries winning contracts in 2024 alone.
Why the IsDB matters for bidders
The IsDB's smaller volume relative to the World Bank or ADB translates into meaningfully less competition per tender, which improves win rates for well-qualified suppliers. The hub-based structure makes it practical to focus on a specific region rather than monitoring the entire portfolio. Suppliers that understand Shariah-compliant procurement structures and can explain how their goods or services fit within IsDB financing modalities are better positioned than those that treat the IsDB as a generic MDB.
FAQ
Can non-OIC country firms bid on IsDB-financed projects?
Yes, non-member country firms may participate in IsDB procurement in many cases, and firms from 10 non-member countries won contracts in 2024.
How does the IsDB differ from other MDBs in its financing?
The IsDB uses Shariah-compliant financing instruments that avoid conventional interest, such as Murabaha, Istisna, and Ijarah, rather than standard interest-bearing loans.
Where are IsDB tender notices published?
Notices are published on isdb.org, and suppliers can subscribe to email alerts filtered by hub or region through the IsDB's notification system.
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Related terms
Shariah-Compliant Financing
Development finance structured to comply with Islamic law by replacing interest-bearing loans with sale, lease, and partnership instruments such as Murabaha, Istisna, and Ijarah.
ViewIsDB Hub System
The Islamic Development Bank's regional office network, with hubs in eight cities across Africa, the Middle East, and Asia, through which the bank manages project operations and tender publications by geography.
ViewMultilateral Development Bank (MDB)
An international financial institution jointly owned by member governments that lends to developing countries to fund infrastructure, social programmes, and economic development projects.
ViewInternational Competitive Bidding (ICB)
The open, internationally advertised procurement method that multilateral development banks use for their largest contracts to attract qualified bidders worldwide.
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