Last March, UNHCR, the UN Refugee Agency, and the Islamic Development Bank (IsDB) have announced the activation of the Global Islamic Fund for Refugees (GIFR).

The fund was initiated during a signing ceremony on the sidelines of the Riyadh International Humanitarian Forum. A framework agreement was also signed focusing on enhancing cooperation in humanitarian aid between both sides. The signing occurred during a meeting between Filippo Grandi, UN High Commissioner for Refugees, and Dr. Muhammad Al Jasser, Chairman of the IsDB Group.

Grandi and Al Jasser emphasized GIFR’s important role and called on partners, organizations and governments to help the fund reach its target of US$ 500 million, enabling it to achieve its humanitarian goals of securing sustained funding that ensures a timely response to humanitarian crises.

Launched in 2022, the GIFR is an innovative, sustainable, and Sharia-compliant funding tool, which aims to enhance the international community’s humanitarian response to forced displacement and unlock new funding channels to assist millions in need.

The GIFR comprises a Waqf fund and a non-Waqf fund, both open for contributions, which will be invested according to Islamic finance principles. The proceeds of the investments will be deposited into a trust fund to finance UNHCR’s programmes in IsDB member states. UNHCR will contribute US$50 million to the non-Waqf fund and ISFD will contribute US$50 million to the Waqf fund, bringing the initial seed fund for this initiative to US$100 million. The aim is to raise an additional US$400 million from external donors and partners, mobilizing waqf, non-waqf, and other donations (Sadaqah) and contributions. The endowment’s investment returns will be allocated to fund programs assisting forcibly displaced people and host communities in areas such as education, jobs and livelihoods, health, water, sanitation and hygiene, shelter, climate action, economic empowerment, and emergency response.