By Gokhan Ergocun
ALGIERS, Algeria (AA) - Diversification is an essential step to strengthen the robustness of economies in Islamic countries and promote self-sufficiency and long-term economic stability, the chairman of the Islamic Development Bank (IsDB) Group said Tuesday.
Speaking at an annual meeting of the IsDB in the Algerian capital Algiers, Muhammed Al Jasser said that recent global tariff-related tensions could have potentially negative effects on IsDB Group’s member economies, and such global developments made it imperative to accelerate economic integration, open up to alternative and promising markets and promote intra-trade among member countries.
The four-day meeting began Monday, gathering the bank's governors from 57 member countries, officials, experts, academics and private sector representatives under the main theme of “Diversifying Economies, Enriching Lives.”
"In the midst of a highly complex global landscape where crises are intertwined, the global economy today faces unprecedented challenges, on top of which are escalating geopolitical tensions, worsening economic fragmentation and the repercussions of climate change," Al Jasser said.
These and other factors have led to a slowdown in global growth to 3.3% in 2024, with a further decline to 2.8% in 2025, according to the latest IMF report, he noted.
He said IsDB's member countries have registered a mixed economic performance; while growth slowed slightly in Asia, Latin America and Europe, the MENA region saw a sharp decline from 5.8% in 2022 to 1.5% in 2023, followed by a slight improvement to 1.6% in 2024, with an expected to improvement to 3% in 2025.
Sub-Saharan Africa, on the other hand, presented a promising model, with growth rising from 3.7% to 4.2% in 2024. This upward trend is expected to continue in 2025, despite the current global trade disruptions, he said.
"Despite these challenges, the IsDB Group has continued to play a leading role in driving development and consolidating economic stability in its member countries," he added.
To produce a deeper and more sustainable development impact, the IsDB Group has strengthened its strategic partnerships, enhanced its governance structure, and adopted innovative financing modes underlain by the principles of Islamic finance, which constitute a real lever to bridge the financing gap in many member countries, he noted.