Riyadh, Saudi Arabia, April 30, 2024 — The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has marked a significant step forward in global economic integration through a series of strategic partnerships and agreements at the 49th Annual Meetings of the IsDB Group.
During the third day of the event, ITFC engaged with key stakeholders and signed several critical agreements aimed at bolstering trade and socio-economic development among the member countries of the Organization of Islamic Cooperation (OIC). Eng. Hani Salem Sonbol, CEO of ITFC, highlighted the importance of these initiatives as part of the ITFC’s commitment to enhancing economic resilience and sustainability in the Islamic world.
Strategic Bilateral Meetings and Agreements: The ITFC held productive meetings with the IsDB Governors from the Sultanate of Oman, The Gambia, Bangladesh, Maldives, Pakistan, Uzbekistan, and Tajikistan. These discussions focused on enhancing bilateral cooperation, promoting trade and economic integration.
Key agreements signed included:
- A US$25 million Mudarabah Agreement with Saudi Arabia to provide a Line of Finance to Bank De Caire, aimed at supporting exporting SMEs.
- A EUR60 million LC Confirmation Facility with Bank of Africa Cote d’Ivoire to facilitate trade and enhance financial stability in West Africa.
- A grant agreement with BADEA to support the Arab Africa Trade Bridges (AATB) program, which promotes economic integration across regions.
Fostering SME Development: A special session titled “The Role of SMEs in Saudi Vision 2030” was conducted, exploring how financial institutions could empower SMEs to achieve the objectives of Saudi Vision 2030. This session highlighted the KSA SME Export Empowerment Program as a successful partnership model between financial institutions and the Saudi government in supporting SME growth, recognized as a key driver of economic diversification and job creation in the Kingdom.
Technical Assistance and Environmental Sustainability Projects: Furthering its commitment to modernizing trade practices, ITFC signed an MoU for a Technical Assistance project on the digitalization of Certificates of Origin with AACE-WAEMU, benefiting several West African countries including Benin, Burkina Faso, Cote d’Ivoire, Mali, and Senegal. This initiative is expected to enhance regional trade cooperation by reducing trade costs and time.
Additionally, in the Republic of Maldives, two Memoranda of Understanding Agreements were finalized for the ‘Blue Carbon Generation Project’, aligning with global environmental sustainability goals.
Major Developments in Asia and North Africa: Significant strides were made in strengthening economic ties with Asian and North African countries. A landmark 3-year US$3 billion Framework Agreement was signed with the Government of Pakistan to significantly enhance the nation’s trade and economic growth. Meanwhile, Al Salam Bank Algeria secured a US$15 million LC Confirmation Facility to bolster their trade finance operations
The 49th IsDB Group Annual Meetings have served as a pivotal platform for the ITFC to advance its mission of promoting sustainable economic development and fostering robust trade ecosystems. These agreements and partnerships not only underscore ITFC’s pivotal role but also set the stage for a future of increased prosperity and interconnectedness among OIC member countries. Eng. Sonbol expressed pride in these achievements, emphasizing that ITFC is set to continue playing a crucial role in the socio-economic advancement of the Islamic world.