The Road to the SDGs

PURPOSE X In 2019, an internal review of IsDB’s administered trust funds and special funds led IsDB to launch an exercise to reinforce best practice, along with strong, transparent governance and operating arrangements and result-oriented management. X In fact, it became clear that IsDB needed to enhance its capabilities in external fund management to demonstrate its credibility and develop a stronger competitive advantage in this space. X As a result, it was decided to set up a new fund management framework in accordance with best practices and based on strong and transparent governance and operating arrangements. X In establishing a best practice fund management framework, IsDB is scaling- up its efforts to mobilise off-balance sheet resources by bolstering its reputation as a trusted development partner and effective manager of third-party funds. X The initiative consists of mainstreaming the special funds and trust funds administered by IsDB into its strategies and business processes and providing IsDB with a transparent and comprehensive framework in line with the best practice for the establishment, administration and use of each special fund and trust fund. X The purpose of the Fund Management Framework is: – To strengthen focus of the P5P on IsDB’s strategic goal to deliver significant growth in off-balance sheet resources, enabling it to mobilise much greater levels of concessional finance for its MCs, whilst minimising financial risk to the IsDB Group. The P5P also emphasises the need for progressive change of the organisation from a development bank to a bank for development and developers. These ambitions can only be achieved by nurturing and expanding partnerships in the international development community, and pooling capabilities and resources to achieve common goals through fit-for-purpose funding vehicles – To ensure that funds are included in the mainstream of IsDB’s business, and that the capacities and resources of the entire organisation are brought to bear in assuring the success and growth of IsDB’s funds business – To instil practices that meet international standards and promote the engagement of development partners and sustainable results. X For IsDB to build and sustain a competitive advantage in this space, as a trusted partner in a network of successful developers working at the cutting-edge of the field, it must consistently deliver results for the contributors to its existing and future special funds and trust funds, Fund Management Framework I sDB has established a new Fund Management Framework to enhance its capabilities and become a trusted partner in the trust fund and special fund space The Fund Management Framework will allow for easier access to external funds by building trust with potential partners, particularly in the Awqaf sector where the potential is huge and is estimated in US$ trillions. It is a major enabler for the achievement of the P5P, in particular on its Funding, Linkages and Reinforcement pillars [ 188 ] SDGs