IsDB and IFAD Target US$750 Million in Co-Financing for Agriculture and Rural Development
15 October 2026, Bangkok: The Islamic Development Bank (IsDB) and the International Fund for Agricultural Development (IFAD) have signed a cooperation and co-financing agreement to mobilize up to US$750 million for agricultural development, food systems and rural transformation across their common member countries.
The agreement will expand investments in agribusiness value chains, market access, rural finance, financial inclusion, climate adaptation, natural resource management and water access. It will also support private-sector investment in agribusinesses and small and medium-sized enterprises in rural areas.
The two institutions are developing a joint action plan to identify investments and expand cooperation. The partnership will also draw on the wider IsDB Group’s expertise in development finance, trade finance, investment and risk mitigation.
Participating institutions 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).
IsDB Group Chairman Dr. Muhammad Al Jasser said the agreement builds on nearly five decades of cooperation between the institutions and aims to strengthen rural resilience, expand economic opportunities and improve livelihoods.
IFAD President Alvaro Lario said the partnership would increase investment in rural communities, support job creation, raise incomes and improve access to markets.
The agreement builds on cooperation that began in 1980. Since then, IsDB and IFAD have co-financed 29 projects with a combined value of approximately US$1.45 billion. The new US$750 million target is intended to expand joint investments in food security and rural economic development.
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