Statement by IDB Governor for Arab Republic of Egypt

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1 Statement by IDB Governor for Arab Republic of Egypt The 39 th Annual Meeting of the IDB Board of Governors Jeddah Kingdom of Saudi Arabia Sha baan 1435H (24-26 June 2014) Original Text Arabic

2 Your Excellency the Chairman of the Board of Governors, Your Excellencies the Governors and Alternate Governors, Your Excellency the President of the Islamic Development Bank, Honourable Delegates, Assalamu alaikum wa rahmatallahi wa barakatuh! On behalf of the Government and people of the Arab Republic of Egypt, it gives me great pleasure to express my sincerest thanks and gratitude to the Custodian of the Two Holy Mosques, King Abdulla Bin Abdul Aziz, who has graciously accepted patronage of this annual meeting and the celebration of the 40 th Anniversary of the establishment of the Bank; and to his Crown Prince, Prince Salman Bin Abdul Aziz, who honoured us with presence at the opening ceremony, to H. E. Dr. Ibrahim Al Assaf, the Kingdom of Saudi Arabia Minister of Finance and Chairman of the IDB Board of Governors; and to the Government and people of the Kingdom of Saudi Arabia for hosting this meeting and providing all the required facilities to ensure its success. Governors and Alternate Governors, We are proud and feel appreciated that our meeting is taking place on Saudi Arabian soil and under the auspices of the Custodian of the Two Holy Mosques, King Abdulla Bin Abdul Aziz, I am pleased to take this opportunity to express my thanks and appreciation to the Management of the Islamic Development Bank under the leadership of Dr. Ahmad Mohamad Ali for his great efforts and dedication to economic and social development in member countries. I would also like to express my thanks and appreciation to the IDB Board of Executive Directors and the Management of the Bank at all levels, and to the staff of the Bank for their efforts in running this financial monument of which we are all very proud. We meet today after 40 years since this pioneering institution was turned from a dream into a reality at the hands of His Majesty King Faisal Bin Abdul Aziz and the founding leaders at that time. This blessed tree has borne fruit and its lush branches have grown from 22 countries at the time of founding to 56 member countries at present it has been forty years during which time the Bank developed enormously, diversifying its activities to a great extent in order to meet its member countries requirements. Its operations and total financing grew exponentially. This enormous growth was took place, with the grace of God, thanks to the cooperation of the member countries and the effective role played by Dr. Ahmed Mohamad Ali with his wise leadership and prudent management style, and his unflagging efforts and cooperation with member countries in order to meet their development requirements and help them achieve economic and social progress. A great deal has been achieved during those forty years in the area of solidarity in the service of development efforts. This institution was able to occupy a distinguished position among leading international financial institutions, and has earned the praise and the appreciation it deserves from all member countries. We all acknowledge that Dr. Ahmad Mohamad Ali has a vast experience, management capabilities, wisdom and dedication. The distinguished efforts he has been making have contributed a great deal to the development of the IDB Group. It is therefore our pleasure and honour to support Dr. Ahmad Mohamad Ali s re-nomination for a further 5-years term of office starting from the following day from the date of the expiry of his current term of office. It is important that he continue with his long experience in leading this 1

3 pioneering development institution in recognition his sincere efforts and the distinguished services that he has been rendering to member countries through his wise and successful leadership from the time of inception to date. Ladies and Gentlemen, I would like to refer to the IDB Board of Executive Directors initiative which was announced by the President of the IDB Group during the 38 th Annual Meeting of the Board of Governors calling for an independent assessment of the Group s interventions during the past forty years, and formulating a Ten-Year Strategic Plan with a view to submitting the results of the study to our current meeting. In this regard, I would like to commend that initiative taken by the Bank to discuss and review its past experience in a frank and transparent manner, including past challenges, success and failures. Based on the lessons learned from the review, a future road map may be drawn and aspirations can be articulated for the IDB Group bearing in mind the Islamic Development Bank Vision 2020 as well as the rapid and successive developments in member countries and at the global level. We also greatly value the sincere efforts the BED which supervised the implementation of this initiative which produced the report before us today. The report is a product of collective effort and cooperation among all member countries, the Board of Directors of IDB Group Departments, the IDB Group Management and staff under the leadership of H. E. Dr. Ahmad Mohamad Ali. Governors, Ladies and Gentlemen, Having reviewed the IDB Annual Report, I would like to commend the various achievements made on all levels. The year 1434H witnessed a record figure in total financing operations, both long and short term, to meet the requirements of member countries. Net income also rose during the year. Praise is also due to the Islamic Corporate for the Development of the Private Sector (ICD) for the role it plays in supporting the private sector in member countries. It is hoped that the ICD s policies and costs of its programs are continuously revised and evaluated in order to develop its capabilities and encourage it to perform the mission for which it as established. We look forward to the formulation of a clear mechanism to effect coordination between ICD and the Bank in financing private sector operations. I would also like to note the achievements made by the Islamic Corporation for the Insurance of Investments and Export Credit (ICIEC). But despite the growth in its operations during recent years ICIEC s results are extremely modest and hardly satisfying compared to expectations. We therefore look forward to more follow up, review and evaluation of ICIEC s operations and policies. I would also like to commend the role played by the International Islamic Trade Finance Corporation (ITFC) in supporting member countries intra-trade. I am pleased to be able to congratulate the ITFC on its Assistance for Trade Initiative for Arab Countries which aims at increasing economic development. While we fully support the initiative it is hoped that subsequent phases of the initiative would extend to include all member countries. 2

4 Fellow Governors, The events and developments which our region has been witnessing since 2011, as well as international and regional developments, call for a pause to take stock and objectively evaluate past performance at level of the IDB Group work. In this respect, we would like to put before you the following points: 1. Assessment of the impact of the review conducted on the occasion of the 40 th Anniversary of the founding of the Bank, and the taking of member countries observations into consideration in order to sustain the development process conducted by the Bank and increase the development impact of its operations. 2. It is important that the Bank mobilize all efforts through its member country partnership strategies to support comprehensive and sustainable development. 3. It is important that the Bank gives priority in its work to the provision of advice and expertise and institutional support to member countries for capacity building. 4. The Bank should help member countries to attract foreign investments, and encourage the expansion of intra-investment among these countries. 5. Attention should be given to the development of our human resources and the building of individual skills for development. It is hoped that the Bank will double its efforts to enhance the quality of education and training methods for human resources. 6. More attention should be given to agricultural and rural development projects with a view to achieving food security in member countries. 7. Further attention should be given to economic integration and technological cooperation through the support to joint projects and trans-border programs. 8. We look forward to the review of the policies of the cost of financing as well as its terms and conditions. In this regard, the Bank should make use of its AAA credit rating to mobilize resources from international markets at competitive prices with a view to lowering the costs of project financing. 9. Continuous attention and support should be provided for economic and social development in African member countries, particularly the least developed countries. This requires giving priority t infrastructure, agricultural and integrated rural development projects, as well as food security projects. Allocations for health and educational projects as well financing for the private sector should be increased. 10. High unemployment rates in our countries clearly demonstrate the urgent need for expanding and increasing the support provided to medium, small and micro enterprises which contribute to the creation of employment opportunities, in addition to labour intensive projects. It is hoped that the Bank, in cooperation with member countries will set forth a strategy for this type of projects. Enough flexibility should attend this kind of work in order to meet the demands of member country populations, particularly countries which have recently witnessed political changes. Microfinance must therefore be expanded to reach as many among the poor, the low-income and marginalized segments of society as possible. 3

5 Fellow Governors, I would like to take this opportunity to send a message of support and appreciation to the steadfast people of Palestine, and commend the efforts made by the Supreme Council and Administrative Committee of Al-Aqsa and Al-Quds Funds and the valuable efforts made by the Bank to serve our people in Palestine. We trust that the Bank will continue to support the Palestinian people through the development programs and Ghaza Reconstruction Program which it is implementing with the two funds and in cooperation with other regional and international institutions. Regarding my own country, Egypt, you no doubt know about the recent political and social changes and developments since the January 2011 revolution. On the political front a new President, H. E. Abdel Fattah Alsisi, was elected last May in free and transparent elections. This followed the ratification of a new constitution for the Arab Republic of Egypt in January, It is expected that parliamentary elections will be held soon to complete the road map drawn by the Egyptian people. This way Egypt to perform its historical and geographical role on all levels: Arab, African, Islamic and International. On the other hand, you no doubt are informed about the huge economic and social problems which beset us, and the challenges we face. But we are confident that, with political and security stability and comprehensive economic plans, we will rise up to these challenges with the help of our own Egyptian working hands and the support of the Islamic Development Bank, as well in partnerships with our brothers and friends and regional and international financial institutions. In conclusion, I would like to reiterate our sincerest thanks and gratitude to King, Government and People of the Kingdom of Saudi Arabia for the warm welcome and generosity with which we have been received. I am pleased to confirm the commitment of the Arab Republic of Egypt to support the Islamic Development Bank in its quest to achieve its noble goals of economic development and prosperity for the peoples of our member countries. I would also like to emphasize that we have no alternative to solidarity, total cooperation and oneness of cause in order that our Ummah may realize its legitimate aspirations for economic development and prosperity. May Allah guide your steps? Wassalamu alaikum wa rahmatallahi wa barakatuh! 4

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