ICD’s mandate is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia’a.
The MoU envisages cooperation to explore the feasibility of extending a commercial line of credit of $100 million to ICD with the aim of facilitating the export of goods and services from India to ICD’s member countries.
Typically, the recipients of EXIM Bank’s commercial lines of credit act as intermediaries and on lend to overseas buyers for the import of Indian goods and services. Under the agreement, co-operation will also be achieved through the exchange of information on trade-related matters and the identification of business opportunities for Indian companies to pursue in ICD’s member countries. Saudi Arabia, UAE, Egypt, Kuwait and Qatar are among the 56-members of the IDB.
The agreement was signed by Tarun Sharma, regional head of EXIM Bank, and Khaled Al-Aboodi, the CEO and general manager of ICD. “Moving forward, we are very excited to find common ground and work with EXIM Bank. We acknowledge that India, being the seventh largest economy in the world, has a lot to offer and its high-quality exports of goods and services can drive the next wave of growth. I believe ICD’s member countries can offer vibrant business prospects for India’s exporters,” Al-Aboodi said. Sharma said that, since its inception, EXIM Bank has been both a catalyst and a key player in the promotion of cross border trade and investment.
Source: http://www.arunachaltimes.in/india-signs-100m-draft-export-pact-with-islamic-development-bank/