Jeddah, Saudi Arabia, is the headquarters of the Islamic Development Bank.
The institution was established in 1975 by member countries of the Organisation of Islamic Cooperation to promote economic development and social progress. It began operations in 1975, and Jeddah has served as its headquarters. The bank's work covers infrastructure, education, health, trade, agriculture, and private-sector development in member countries and Muslim communities.
The IsDB operates according to principles of Islamic finance, which generally avoid interest and emphasize asset-backed or risk-sharing arrangements. Its name was changed from Islamic Development Bank to Islamic Development Bank Group in 2015 to reflect its group structure. Jeddah is sometimes confused with Mecca because both are in Saudi Arabia's Hejaz region, but the bank's headquarters are in Jeddah, a major Red Sea port and commercial center.