IDB Group Chairman confirms readiness to provide humanitarian support to Yemen

Jeddah - 26/06/1436H (April 15, 2015): Chairman of the Islamic Development Bank (IDB) Group Dr. Ahmad Mohamed Ali, confirmed the Group’s intention to form a joint working group in cooperation with the Yemeni government and NGOs currently operating in the field of humanitarian relief in Yemen, to identify Yemen’s needs for humanitarian support, and to develop the necessary frameworks for rehabilitation and reconstruction operations once security is restored.

The statement was made on the occasion of a meeting of IDBG Chairman with H.E. Dr. Mohamed Abdel Wahid Maitami, Minister of Planning and International Cooperation, and IDB Governor for the Republic of Yemen, on the sidelines of the annual meeting of Arab Financial Institutions held in Kuwait. IDBG Chairman requested the Yemeni Minister to appoint the country’s representatives in the Joint working group, stressing at the same time, the IDB Group’s commitment to make the best of efforts to support the people of Yemen.

The Yemeni Minister commended the IDBG for the important role it plays in support of development plans and programs in Member countries in general and in the Republic of Yemen in particular.

It is worth mentioning that the Republic of Yemen, as one of the Bank’s founding member countries, has had, close cooperation ties with IDBG for more than forty years. These relations were again recognized when, last year, Dr. Ahmad Mohamed Ali paid a visit to Yemen in response to an official invitation by Yemeni President H.E. Abd Rabbu Mansour Hadi and was awarded the “First Class Unity Medal” in recognition of IDB Group’s role in supporting development activities in Yemen, and for the efforts the Group has been making to foster fruitful cooperation between Yemen and IDB Member Countries ever since its inception.

The financing approvals for Yemen by IDB and the IDB Group member institutions to date amount to around US$ 1.8 billion. These approvals are as follows: IDB - US$ 471 million, International Islamic Trade Finance Corporation (ITFC) - US$ 425 million, Islamic Corporation for the Development of the Private Sector (ICD) - US$ 144 million and Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) - US$149 million. So far, IDB has financed 88 development projects

in Yemen for US$ 471 million, of which 59 projects were completed and 29 projects are under implementation. IDB financing in Yemen covered a number of sectors, particularly agriculture, energy, transport and education. IDB has also prepared, in collaboration with the World Bank, UNDP and the European Union, Yemen’s Social and Economic Assessment Report, which is the main document on the basis of which was drawn the financing plan for the transitional program for stabilization and development 2012-2014.

It is noteworthy that IDB is an active member of the GCC Joint Technical Committee for the identification of Yemen’s developmental needs, and follow up of the fulfillment of commitments. In this context, IDB prepared a study in 2012 on the obstacles faced by Yemen in the implementation of projects and the use of financing from friendly countries and international financial institutions. The study was submitted to the GCC Joint Technical Committee.

IDB and ICD (Member of the IDB Group) also prepared, in cooperation with the Yemeni government, a project report "Preparation and Support of Implementation of Hodeidah Industrial Zone", under Deauville Partnership’s Transition Fund, with a total amount of US $ 3.3 million.

IDB has been keenly participating in regional and international conferences and meetings on supporting development efforts in Yemen. On March 7, 2013, an IDBG delegation, headed by the IDBG Chairman, participated in the 5th Ministerial Meeting of the Friends of Yemen, held in London and attended by delegations from about 80 countries, regional and international financial institutions. During this meeting, the IDBG Chairman signed an agreement with IDB Governor for Yemen, committing US$ 50 million to support the training and employment of Yemeni youth, in the context of the IDB youth employment program, from its US$ 250 million fund allocated to assist Arab member countries in transition.

It is noteworthy that ICIEC (a member of the IDB Group) is planning to establish, in coordination with the Yemeni authorities and members of the GCC Joint Technical Committee, an investment insurance fund with a capital of 500 million US dollars.

The latest financing that IDB approved for Yemen was in March 2015 and consisted of a loan of US$ 18 million to be repaid in (25) years, including a seven-year grace period, for a project intended to increase the electric power supply produced by the Marib power station to meet the needs of rural areas in the province of Marib.