| Bangkok, October 2026. The Islamic Development Bank (IsDB) and the International Fund for Agricultural Development (IFAD) are stepping up joint investment in food systems and rural transformation. Under a newly signed agreement, the two institutions aim to mobilize up to US$750 million in co-financing to drive sustainable agricultural development.
This expanded partnership combines the financing power, specialized expertise, and global reach of both institutions. Together, they will scale up investments to advance their shared goals: transforming rural economies, eradicating poverty, and strengthening food security. “This renewed partnership between IsDB and IFAD builds on nearly five decades of successful cooperation,” said Dr. Muhammad Al Jasser, Chairman of the IsDB Group. “Together, we will leverage our collective expertise and resources to strengthen resilience, expand opportunities, and improve the lives of rural communities across our member countries.” |
||
 |
| Dr. Alvaro Lario and Dr. Muhammad Al Jasser sign the new cooperation and co-financing agreement. ©IFAD/Adam Birkan | ||
Alvaro Lario, President of IFAD, highlighted the economic ripple effect of the initiative: “Through this agreement, we are scaling up investment in the first mile of food systems to create jobs, increase incomes and build more prosperous and resilient rural economies. When rural people have the opportunity to build businesses, connect to markets, and earn a decent living, the benefits extend far beyond rural areas.” Under the new Cooperation and Co-financing Agreement, the IsDB and IFAD are developing a joint action plan to translate this ambitious goal into tangible investments. The plan will broaden cooperation across critical areas, including agribusiness value chains, market access, rural finance and financial inclusion, climate adaptation, sustainable natural resource management, and water access. The agreement paves the way for expanded private-sector operations to support agribusinesses and rural small- to medium-sized enterprises. To maximize impact, the partnership will leverage the full capabilities of the wider IsDB Group. This collaborative approach creates new avenues for blending development finance, trade finance, investment, and risk mitigation to support rural transformation. Participating affiliates include the Islamic Corporation for the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). This landmark agreement marks a dynamic new chapter in a partnership that began in 1980. Since then, IsDB and IFAD have successfully co-financed 29 projects with a combined value of approximately US$1.45 billion. The new US$750 million target underscores a bold, joint commitment to accelerate this cooperation and deliver transformative investment at greater scale across common member countries. |
||
| The International Fund for Agricultural Development (IFAD) is the only international financial institution exclusively focused on transforming rural economies. IFAD invests in rural people and their communities, strengthening agri-food value chains and building food security, shared prosperity and stability. Today, IFAD and its partners have nearly US$23 billion invested in ongoing projects that are transforming rural economies.
A wide range of photographs and broadcast-quality video content of IFAD’s work in rural communities are available for download from our Digi Hub. About the Islamic Development Bank IsDB Group: The Islamic Development Bank (IsDB), which holds the highest possible credit rating, AAA (Triple-A), from major international credit rating agencies, is a pioneering multilateral development bank (MDB) of the Global South. For more than five decades, the Bank has been dedicated to advancing sustainable economic and social development and improving the livelihoods and well-being of the populations it serves. With 57 member countries spanning four continents, IsDB plays a significant role in addressing development challenges, fostering international cooperation, and supporting progress toward the United Nations Sustainable Development Goals (SDGs). The Bank promotes inclusive and sustainable development through investments in resilient infrastructure, human capital development, economic empowerment, and environmentally sustainable growth, with the overarching objective of enabling individuals, communities, and economies to realize their full potential. Headquartered in Jeddah, Kingdom of Saudi Arabia, IsDB maintains a global operational presence through 10 regional hubs and a center of excellence. Since its establishment, the Bank has evolved into the IsDB Group, comprising five institutions with complementary mandates: the Islamic Development Bank (IsDB); the Islamic Development Bank Institute (IsDBI); the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC); the Islamic Corporation for the Development of the Private Sector (ICD); and the International Islamic Trade Finance Corporation (ITFC). |
