Saturday, 26 November 2016

Islamic Development Bank shares update at COMCEC

The Islamic Development Bank (IsDB) Group has participated in the 32nd Ministerial Session of the Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC), which took place 21 to 24 November in Istanbul, Turkey. 

On 23 November, IsDB and Borsa Istanbul, the sole exchange entity of Turkey, signed a memorandum of understanding (MoU) to cooperate in fostering Islamic finance in Turkey and other IsDB member countries. The MoU provides a basis for both institutions to work together to expand the size of sukuk issuance and shari'ah-compliant IPOs at Bursa Istanbul.

Recently-appointed IsDB President Dr Bandar Hajjar highlighted the pioneering role IsDB has taken in supporting Islamic finance for economic development in member countries. Over the past 40 years, IsDB has supported the development of the Islamic financial industry through equity investments, supporting the necessary enabling environment, and developing financial products and funds. 

IsDB helped establish 35 financial institutions that supported the sukuk issuance as a market maker. Dr Hajjar also emphasised the bank’s contribution in building the Islamic finance ecosystem by supporting the creation of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), International Islamic Liquidity Management Corporation (IILM), Islamic Financial Services Board (IFSB), and the Islamic International Rating Agency (IIRA). The bank’s current portfolio stands at around US$120 billion, including US$64 billion of trade financing and US$32 billion for infrastructure financing.

The IsDB delegation also reiterated its commitment to implement the OIC 10-Year Program (2016-2025) under the cooperation pillar of its 10-Year Strategy (2016 to 2025) and its continuing work to enhance intra-Organisation of the Islamic Conference (OIC) trade as well as implementation of the Trade Preferential System among the Member States of the Organisation of the Islamic Conference (TPS-OIC). The delegation also highlighted the current focus of the bank’s World Trade Organization (WTO) Technical Assistance Program on three themes: accession to the WTO, regional integration and national activities. 

They also highlighted the International Islamic Trade Financial Corporation's (ITFC’s) contribution through initiatives such as Aid for Trade Initiative for Arab States, Arab Africa Trade Bridge Program, Trade Knowledge Bridge Program, Youth Training and Employment for International Trade, ITFC Indonesian Coffee Export Development Program and the Trade Development Forum. ITFC trade financing approvals surpassed a record high of US$6 billion in 2015. 

The Islamic Corporation for the Development of the Private Sector (ICD) has continued to support the private sector through its wide range of financing, investment and advisory services for approximately 2,000 small and medium enterprises, and the introduction of around 4,000 new businesses that created more than 55,000 private-sector jobs in member countries.

IsDB further updated on a new initiative for the development of transport geographic information system (GIS) software. The first phase of the project covers 11 member countries in the Euro-Asia sub-region and has been developed in cooperation with the United Nations Economic Commission for Europe.