The Islamic Development Bank commits USD55 million to Palestine through the Al Aqsa and Al Quds Funds

The announcement was made on the final day of the IDB's 29th Annual Conference on 14 and 15 September in Tehran. The Al Aqsa Fund tabled its Annual Report at the conference with a report on the performance of the Fund for the FY2004.

"The Governor's of IDB, and the shareholders of Al Aqsa, were very impressed with the work that has been done to turn despair into hope for our brothers and sisters in Palestine through the work of the Al Aqsa and Al Quds Funds, true partners to Palestine. However, the Funds are reaching capacity and the need remains tremendous as Palestine builds toward economic sustainability under extreme circumstances. We want our brothers and sisters to know that they remain in our hearts and in our minds which is why the Governors have approved the injection of a further US$55 million to continue the good work that the fund has done supporting the private sector which is the engine of hope for the People of Palestine.

US$50 million was issued through the financing programmes that IDB currently supports to finance economic and social projects and US$5 million donated by IDB's "Waqf" fund" for emergency humanitarian needs," said Dr. Ali.

The Governors' of IDB also urged all OIC members to intensify their support through the Al Aqsa Fund, a proven and effective mechanism for Palestine and for current shareholders to increase their contributions to ensure the ongoing work on the ground could continue. Morocco was the first to take up this call to action with its commitment to Palestine also announced today.

Prior to the declaration of the conference's closing resolutions, Saudi Arabia, Egyptian and UAE Minister's of Finance respectively, Ibrahim Bin Al Aziz Al Assaf, Dr. Osman Mohammed Othman and Mohammed Khalfan Bin Kharbhash called upon all participants of the Annual Meetings to support the funds, stressing the importance of supporting the Palestinian people through its economic initiatives under the harsh conditions forced by the Israeli occupation.

"The Al Aqsa Fund's work has been very significant in providing hope and opportunity to the people of Palestine and we thank the IDB and its partners for the good work that it does. Feedback from our shareholders has been very positive on the positive impact the Fund has had as it is flexible, dynamic and responsive to the needs of the Palestinians. All shareholders have committed to contribute in responding to the changing needs on the ground and the importance of the contribution of the Fund with our many partners who help on the implementation of the projects," said Ibrahim Al Bassam, Chairman of the Managerial Committee for the Al Aqsa and Al Quds Funds.

"After four years it is time to review its strategy and focus, which we are embarking upon now, to ensure that the good work continues and the fund as a mechanism of support is able to have sustainable and significant impact. The Al Aqsa Fund is capable of meeting the new challenges ahead and has a proven track record working with its partners working the occupied territories. The strategic review will take into consideration the increasing needs of the Palestinians and is a consultative process engaging beneficiaries, donors, and shareholders with the view of supporting the long-term economic sustainability of Palestine despite the circumstances," said Dr. Ali.

The IDB manages the activities and operations of the Al Aqsa Fund which was established during the urgent Emergency Arab Summit in Cairo in October 2001. Total contributions to the Al Aqsa and Al Quds Funds was US$800 million of which US$588 million has been committed or utilized to support health, education, infrastructure, agriculture, trade and investment and humanitarian aid.

"nhancing the shareholder base of the Fund is critical to its long-term effectiveness, and with Morocco as a first step, in addition to the support from Saudi Arabia, Egypt and the UAE to encourage all existing and new shareholders to enhance their pledges, sends a strong message to the Palestinians that we are with them," said Ali.