International Islamic Trade Finance Corporation (ITFC) Advances Global Economic Integration through Strategic Partnerships at the 49th Islamic Development Bank (IsDB) Group Annual Meetings
Significant Agreements and Strengthened Partnerships Manifest the ITFC Role in Propelling Trade Development and Socio-economic Progress Among OIC Member Countries
RIYADH, Saudi Arabia, April 30, 2024/ — During the third day of the 49th IsDB Annual Meetings, the International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb), a member of the Islamic Development Bank (IsDB) Group, signed additional agreements and engaged in pivotal partnership discussions with several key OIC member countries and other key stakeholders.
The day featured strategic meetings with the IsDB Governors from, the Sultanate of Oman, The Gambia, Bangladesh, Maldives, Pakistan, Uzbekistan, and Tajikistan. These meetings focused on enhancing bilateral cooperation, particularly promoting trade and economic integration and supporting economic resilience and sustainability.
Additionally, a session on “The Role of SMEs in Saudi Vision 2030” explored how local and regional financial institutions (FIs) could empower small and medium-sized enterprises (SMEs) to achieve the objectives of Saudi Vision 2030. The dialogue also discussed means to unlock the full potential of SMEs, recognized as a key driver of economic diversification and job creation in the Kingdom, and showcased successful initiatives like the KSA SME Export Empowerment Program, a model partnership between FIs and the Saudi government in supporting SME growth.
The day’s proceedings included signing several important agreements, each designed to bolster economic prospects in the OIC member countries. Among these was a US$25 million Mudarabah Agreement with Saudi Arabia for a Line of Finance to Bank De Caire to offer financing to exporting SMEs. In West Africa, a EUR60 million LC Confirmation Facility with the Bank of Africa Cote d’Ivoire was signed to facilitate trade and bolster financial stability. A grant agreement with BADEA was also concluded to contribute to the Arab Africa Trade Bridges (AATB) program, promoting economic integration across regions.
Eng. Hani Salem Sonbol, CEO of ITFC, commented on the day’s significant milestones: “These agreements, signed during the IsDB Annual Meetings are a significant milestone in ITFC’s mission as we celebrate 50 years of the IsDB Group’s commitment to human development. They are pivotal to our efforts to promote trade and enhance socio-economic development across our member countries. From advancing SME development to empowering local financial institutions, ITFC sets the stage for a sustainable economic future. We are proud to reinforce our commitment to fostering robust trade ecosystems that support the dynamic needs of our Member Countries and their communities.”
Furthermore, ITFC signed an MoU for a Technical Assistance project on the digitalization of Certificates of Origin with AACE-WAEMU that will benefit several countries, including Benin, Burkina Faso, Cote d’Ivoire, Mali, and Senegal, enhancing regional trade cooperation by reducing trade cost and time. For the Republic of Maldives, two Memoranda of Understanding Agreements were finalized for the ‘Blue Carbon Generation Project’, which aligns with global environmental sustainability goals.
Finally, several significant developments were made in Asia and North Africa. A landmark 3-year US$3 billion Framework Agreement was signed with the Government of Pakistan to strengthen the nation’s trade and economic growth significantly, while Al Salam Bank Algeria secured a US$15 million LC Confirmation Facility to bolster their trade finance operations in Algeria.
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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About the International Islamic Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.