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NOMINATIONS - Best Development Bank Private talk

June 1, 2014

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral organisation affiliated with the Islamic Development Bank (IDB) Group. The mandate of ICD is to support the economic development of its member countries through provision of finance to private sector projects in accordance with the principles of Shari'ah law. ICD finances projects that are specifically geared to creating employment opportunities and boosting exports.

What were the ICD's achievements in 2013?

"Despite the global downturn and persistence of uncertainties in 2013, ICD approved 28 projects, four Qard Hasans and three capital increases for total amount of $508.18 million in 2013. These projects added value to the economic and social development of member countries through new job creation, technology transfer and through cross-border investments.

"During 2013, ICD finalised the Guidelines for Expanded Follow-Up for both financial and non-financial operations of the institution, describing the Project Follow-up (Supervision) Report (PFR) as well as the Expanded Project Follow-up (Supervision) Report (XPFR). Guidelines for Self Evaluation of Advisory services were also finalised in the past year.

"As part of the 2013 work programme, a Portfolio Performance Review for 115 projects in nine member countries was undertaken. The objective of the review was to quantitatively and qualitatively describe and assess the performance, results, and sustainability of ICD's interventions."

In which countries and sectors was the ICD most active during 2013?

"ICD's exposure stretched across 32 countries and three regional projects during 2013. Saudi Arabia held the highest portion followed by Uzbekistan, Turkey and Yemen. ICD's exposure spread over eight different sectors, where the financial sector has the largest share of the exposure followed by the industry and mining sectors."

How will this shift in 2014? Where do you see the next market for Islamic finance?

"Given the importance of Islamic finance, the need for promotion of the industry is among the strategic priorities of the IDB Group. To complement this theme, ICD has also made it a strategic priority to broaden the availability and affordability of Islamic finance and to deepen Islamic capital markets in its member countries. As a response to the global financial crisis, which adversely affected most of its member countries, ICD recently recalibrated its operational strategy to address current market needs. Under its new strategy, ICD is focusing more on the development of Islamic finance channels in Africa and CIS countries in order to have a higher developmental impact in these countries.

"The Islamic finance channels cover a number of instruments such as Ijarah, industry and regional funds, equity participation in the capital of Islamic banks, creating Islamic windows within existing conventional banks, boosting the Takaful and ReTakaful industry, promoting Islamic capital markets and encouraging asset management activities for both individual and institutional investors."

What are the ICD's main initiatives for 2014?

"ICD is launching an Ijarah company in Palestine and in Malaysia. ICD signed the aluminum project in Kazakhstan and signed an agreement for structuring several Shari'ah-complaint finance mechanisms to address the small and medium enterprises (SMEs) and the unemployed youth in Libya, to name just a few of these activities."

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Source: Banker Middle East

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