17/07/2025
UNHCR and IsDB deploy US$2.5 million from Islamic finance fund to aid Sudanese refugees
Jeddah, Kingdom of Saudi Arabia – July 10, 2025 – In a pivotal move to tackle a major global displacement crisis, the UNHCR, the UN Refugee Agency and the Islamic Development Bank Group - isdb.org have signed a groundbreaking agreement allocating US$2.5 million to support urgent humanitarian efforts for Sudanese refugees in Egypt, Chad, and Libya, and Libyan host communities.
The funding comprises a US$1.5 million grant from IsDB, US$500,000 from ISFD, and US$500,000 from GIFR’s operational budget, enabling UNHCR to execute various emergency initiatives.
This agreement marks the first substantial resource allocation from the Global Islamic Fund for Refugees (GIFR) since its establishment in 2022, addressing global humanitarian crises. The GIFR is an innovative financing tool leveraging Islamic philanthropy to create sustainable funding channels. It utilizes returns from cash Waqf (endowment) to support UNHCR-led emergency responses.
Sudan faces the world’s largest displacement crisis, with over 14.3 million people displaced by war by the end of 2024. Neighboring nations are heavily impacted, with over 1.1 million Sudanese refugees in Chad, more than 600,000 in Egypt, and nearly 200,000 in Libya.
Through this deployment, UNHCR will deliver a range of lifesaving services across three countries:
In Chad, over 50,000 Sudanese refugees will benefit from access to safe water through new solar-powered boreholes and an improved water distribution network.
In Libya, approximately 95,000 Sudanese refugees and local hosts will have expanded access to health care, covering medicines, equipment, facility improvements, and mental health support.
In Egypt, UNHCR will provide supplementary education for refugee children, facilitate access to critical medical care, and deliver assistive devices and rehabilitation to hundreds of refugees with special needs.
The agreement was signed at the IsDB headquarters in Jeddah by Dr. Issa Faye, Director-General of the Global Practice and Partnerships Directorate at the IsDB, and Dr. Khaled Khalifa, Senior Advisor to the High Commissioner for Islamic Philanthropy and UNHCR Representative to the Gulf Cooperation Council countries. Other attendees included Mr. Adil Alsharif, the Officer-in-Charge, Director-General of the Islamic Solidarity Fund for Development (ISFD), and Mr. Syed Husain Quadri, Director of the Resilience and Climate Action Department, as well as Dr. Nadjia Hafsa, UNHCR`s Deputy Representative, and officials from both parties.
Dr. Issa Faye commented: “The operationalization of the Global Islamic Fund for Refugees to address the Sudan crisis is a testament to the power of innovative Islamic finance in humanitarian action. This collaboration with UNHCR underscores the IsDB’s commitment to leveraging diverse financial instruments, including Waqf, to create a sustainable impact for the most displaced populations. We believe GIFR will serve as a beacon for future partnerships, demonstrating how strategic investments can yield tangible results in emergency response and long-term resilience building.”
Dr. Khaled Khalifa stated: “Given the escalating displacement crises and growing humanitarian needs of millions of refugees and internally displaced persons worldwide, traditional funding streams, namely voluntary contributions from donor countries, are insufficient. Amid severe funding shortages, GIFR offers a complementary path to bridge funding gaps through Islamic philanthropic finance. We sincerely thank all partners for reaching this milestone, which we hope will lead to more sustainable initiatives. We invite others to join this promising fund as a model for innovative, impactful, and sustainable financing to protect vulnerable displaced populations.”
For his part, Mr. Adil Alsharif said: “This agreement is a landmark achievement in the GIFR’s mission, demonstrating how our collective efforts to aid refugees can be transformed through innovative financing. By activating the GIFR, we are taking tangible steps not only to alleviate the suffering of Sudanese refugees but also to protect their dignity and lay a foundation for their future. This represents a sustainable lifeline, a strong testament to the IsDB’s commitment to uplifting the most vulnerable through impactful, Sharia-compliant mechanisms.”
Launched in 2022 by the IsDB, ISFD, and UNHCR, the GIFR is a pioneering Shariah-compliant financing mechanism that supports refugee and host community programs in member countries of the Organization of Islamic Cooperation. Through the cash Waqf, the GIFR’s capital is preserved, while its investment returns provide sustainable funding for critical humanitarian efforts, including access to education, water, sanitation, and shelter.
