Islamic Development Bank to open first Indian branch in Gujarat

Gandhinagar: India will soon have Islamic banking facilities with the Saudi Arabia-based Islamic Development Bank (IDB) set to start its India operations from Gujarat, the Gulf kingdom’s envoy in New Delhi said on Wednesday.

“I would like to point to a very important development in our cooperation with the state of Gujarat, and that is Jeddah-based Islamic Development Bank (IDB) is set to start its India operations from Gujarat,” Saudi Ambassador to India Saud Al Sati said at the Vibrant Gujarat Global Summit here.

During Prime Minister Narendra Modi’s visit to UAE in April last year, the Indian Exim Bank had signed a memorandum of understanding with IDB for a $100 million line of credit to facilitate exports to IDB’s member countries.

“The IDB also signed a $55 million agreement with the Rashtriya Institute of Skill and Education to invest in medical care in some areas in Gujarat, including Chhota Udaipur, Narmad and Bharuch,” the Ambassador said.

The state will also get 30 medical vans as part of IDB’s social sector initiatives, he added.

IDB’s main objective is to foster the economic development and social progress of member countries, as well as of the Muslim community, in accordance with principles of Shariah — Islamic law. The bank has 56 Islamic countries as its members.