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GNI of IDB member countries reaches $3.4tr by end-2007

JEDDAH — The gross national income (GNI) of the 56 member countries of the Islamic Development Bank (IDB) Group is equivalent to a share of 23 per cent of the developing countries’ GNI, according to the bank’s annual report (January 20, 2007 to January 9, 2008), which was approved by the Board of Governors (BOG) during the annual general meeting here on Monday. The GNI of the IDB member countries reached $3.4 trillion by end-2007.

The report said that in line with global trends, the IDB member countries, as a group, recorded a GDP growth of 6.1 per cent in 2007 that is expected to slightly edge up to 6.3 per cent during 2008.

It said that at 8 per cent in 2007, the growth in 28 LDMCs of the IDB has been even more promising and is projected to grow at the same rate during 2008.

The per capita income of IDB member countries, as a group, grew to an annualised rate of over 18 per cent from $1,358 in 2003 to $2,355 in 2007.

On the trade front, total exports increased by 22.6 per cent to $1.2 trillion in 2006. The share of total exports of IDB member countries in global exports increased from 7.9 per cent in 2002 to 10.2 per cent in 2006.

The total value of intra-exports among member countries increased by 23 per cent to $166 billion in 2006. The intra-exports ratio increased from 12.5 per cent in 2002 to 13.6 per cent in 2007.

The report said that as a percentage of GDP, national savings of member countries increased marginally from 29.9 per cent in 2006 to 30.1 per cent in 2007. Similarly, the investment rate rose from 22.3 per cent to 24.1 percent of GDP during the same period, leaving the resource surplus at 6 percentage points.

Investment by the private sector rose by 18.3 per cent of GDP in 2007. Member countries’ share in global FDI increased from 9.8 per cent in 2006 to 10.7 per cent in 2007. “The significant resource surplus of non-LDMCs suggests a considerable potential to further enhance intra-investment flows among member countries,” the report said.

As for social performance, 10 of the member countries are categorised as high, 30 as medium, and the remaining 16 are placed low in human development. Unemployment is one of the major socio-economic challenges facing member countries. The employment-to-youth population ratio was 41.5 per cent in 2006, which indicates that more than half of the youth population are not directly involved in market-related activities.

The report said that all trade operations within the IDB Group have been taken over by the International Islamic Trade Finance Corporation (ITFC), which commenced operations from the beginning of this Hijra year.

As of 1428H (2007), cumulative net approvals extended by the IDB Group for different types of development assistance reached $1.1 billion. During the same year, 183 development projects worth $2.7 billion and trade financing totaling $2.8 billion for 82 operations were approved. Projects and technical assistance from ordinary capital resources (OCR) increased by 26 percent to $2.1 billion. Last year, 28 LDMCs received $303.6 million or about 88 percent of IDB’s total concessional financing from the OCR. In cumulative terms, they received $3 billion or about 71 percent of IDB’s concessional financing between 1396H (1976G) and 1428H. Project and technical assistance financing approved for LDMCs totalled $619.8 million in1428H, showing an increase of 42 per cent over last year.

In another important development, 21 trade financing operations in LDMCs amounting to a little over a $1 billion were approved – constituting a share of 41 percent of total trade financing approvals in 1428H. In cumulative terms, and up to end-1428H, the total development assistance extended to LDMCs reached $10.8 billion. “The main focus of IDB’s concessional financing to LDMCs is to alleviate poverty and address its rot causes,” the report explained.

In 1428H, net income from OCR increased to $258 million — 43 per cent more than the previous year.

The report said that as the implementation of the ‘Ouagadougou Declaration,’ adopted by the BOG in 2002 regarding cooperation with Africa, came to an end this year, IDB commitment exceeded the target of $2 billion over the period from 1424H (2003G) to 1428H. The cumulative total approvals by the Group during the five-year period reached $2.4 billion, which exceeded the target by 19 per cent. Of the cumulative approvals, concessional financing reached $890 million — 37.3 per cent —, ordinary financing totalled $605.3 million (25.4 per cent), and trade financing amounted to $580.2 million (24.3 per cent).