Islamic Development Bank's annual meeting sees major deals

The Islamic Development Bank (IsDB) Group's annual meeting saw numerous major deals between the bank, countries, and international institutions.

Starting on Saturday, the four-day event, with side programs, was joined by high-level officials, academics, experts, and representatives from international institutions and the private sector.

Agreements for contributing to development activities, infrastructure projects, fighting disasters, and environmentally friendly solutions were signed.

The IsDB Group not only aims to provide facilities related to financing services but is also creating opportunities in various areas, from health to education.

Mohammad Al Jassar, the bank's head, said at the closing ceremony that the event witnessed around 85 financing agreements between IsDB group entities and 38 member countries as well as 22 regional financial institutions.

- $6.3B deal with Türkiye

The bank and the Saudi Fund for Development on Saturday signed a memorandum of understanding on joint financing, policy coordination, capacity development, and exchange of expertise.

"Both parties have shown a commitment and readiness to work closely to achieve the common goals and interests of the two institutions and their member states," the bank said.

Adylbek Kasymaliev, first deputy chair of the Kyrgyzstan Cabinet, and IsDB Group Chair Muhammad Al Jasser, after discussing elevating partnerships, launched a member-country partnership strategy that mainly focuses on energy, transport, infrastructure, and human development.

Türkiye's Treasury and Finance Minister Mehmet Simsek and Al Jasser officially launched the new country engagement framework (2024-2026).

The framework aims to provide financing worth $6.3 billion to boost resilient, inclusive, and sustainable growth in line with Türkiye's development goals.

The bank and the Central Bank of Mauritania signed an Islamic finance technical assistance agreement to lay the foundation and pave the way for an efficient, sustainable, and modern Islamic banking sector in Mauritania.

The bank signed another memorandum of understanding with the Saudi Energy Ministry's Oil Sustainability Program to access clean cooking in the bank's member countries.

The Islamic Solidarity Fund for Development (ISFD) and the International Center for Entrepreneurship and Innovation (ICEI) signed a memorandum of understanding to collaborate on promoting economic empowerment and social development in Organization of Islamic Cooperation (OIC) member countries.

- Islamic Corporation for the Insurance of Investment and Export Credit

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Qatar Development Bank signed a memorandum of understanding for providing a comprehensive range of services.

The ICIEC signed another memorandum of understanding with Huawei Technologies to enhance telecommunications infrastructure across the corporation's member states.

The corporation signed a memorandum of understanding with the Federation of Contractors from Islamic Countries (FOCIC) to create a comprehensive framework for collaboration in the areas of knowledge sharing and technical capacity for parties within the insurance and contracting sectors.

The ICIEC and Indonesia Eximbank joined forces in a strategic partnership to expand export credit solutions by signing a quota share retakaful treaty – an Islamic alternative to conventional reinsurance based on contracts.

The ICIEC and Joint Stock Commercial Bank Agrobank and Standard Chartered Bank signed a significant cooperation agreement to provide financing upwards of €150 million ($160.8 million).

The corporation and the Export-Import Bank of Malaysia (EXIM Bank) signed a strategic retakaful partnership to establish a high-level, non-binding and non-exclusive framework designed to foster cooperation between parties.

The ICIEC announced new financial collaborations with Sumitomo Mitsui Banking Corporation (SMBC) to support the export capabilities of member states, reinforcing its commitment to economic development through strategic partnerships.

The corporation and the Saudi National Infrastructure Fund signed a memorandum of understanding to establish a framework for cooperation between parties.

The ICIEC and Deutsche Bank signed a significant insurance agreement worth €161.4 million for health care systems in Ivory Coast.

It signed an insurance agreement with the global financial services provider, Societe Generale, covering a €259 million murabaha – an interest-free loan option – financing facility.

- International Islamic Trade Finance Corporation

The International Islamic Trade Finance Corporation (ITFC) also signed several deals at the event.

The corporation signed a $40 million murabaha agreement with the Trade and Development Bank (TDB).

The ITFC signed a framework agreement with Uganda to provide $150 million worth of financing to support key sectors in the country such as energy, agriculture, and health, alongside promoting private sector development.

The corporation extended its partnership with the UN Economic and Social Commission for Western Asia.

The ITFC also signed an agreement with Cameroon for a comprehensive support package to enhance the nation's infrastructure and agricultural productivity.

The ITFC and Saudi Exim Bank signed an agreement for a line of financing worth $25 million in favor of Egypt's Banque du Caire.

- ICD

The Islamic Corporation for the Development of the Private Sector (ICD) signed a letter of intent worth $40 million for finance facilities with the Uganda Development Bank.

The ICD signed a €15 million line of financing agreement with Banque de l'Union Cote d'Ivoire (Ivory Coast) to provide resources needed to finance a range of private sector projects in the country contributing to economic growth and job creation.

In line with its objectives of empowering small- and medium-sized enterprises (SMEs) in its member countries, the ICD signed a letter of intent with a Cameroonian bank, Credit Communautaire d'Afrique of Cameroon (CCA), to pave the way for a potential €10 million line of financing facility.

In its efforts to boost private sector growth in Uzbekistan, the ICD signed a series of agreements with several Uzbek banks to bolster private sector development in Uzbekistan.

In terms of equity investments, the ICD, in its efforts towards promoting access to finance and financial inclusion, also signed a memorandum of understanding with Anor Bank of Uzbekistan with the objective of exploring the possibility of transforming a conventional finance company, Taiba Finance, into the first Islamic Bank in Uzbekistan. This collaboration represents a significant step towards promoting financial inclusion in Uzbekistan.

As a demonstration of its commitment to support the economic growth of each member country, the ICD also signed a memorandum of understanding with the Azerbaijan Investment Company OJSC; this collaboration underscores ICD's commitment to deepening its engagement and support for private sector initiatives.​​​​​​​