Managing a bank without utilizing Western methods of interest-based finance
Author: Anwar, Syed A.
Source: University of Sharjah
Company Name: Islamic Developments Bank
Number of pages: 25
The Islamic Development Bank (IDB), Saudi Arabia has carved out a niche for itself by designing financial instruments and approaches based on ethics and Islamic law. These instruments have been used to provide development assistance to a cross-section of member countries many of them poor and least developed. Despite being constrained by not utilising the traditional method of financing based on the concept of interest, the Bank has been able to expand its resources and operations through innovative approaches and management to maintain a successful track record over a quarter of a century to contribute towards the development of more than 50 countries of the developing world. Objective of this case study is to highlight the case of a unique organisation aimed at contributing to economic development through non-conventional (Islamic) methods of financing and with the Islamic management styles. It is hoped that a case study of this kind would be of interest to development policy experts, students of business and management, and practising executives in various parts of the world.