JEDDAH — A Memorandum of Understanding (MoU) was signed between the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group and Export-Import Bank of India (Exim Bank), a specialized financial institution, established under an Act of the Indian Parliament, wholly-owned by the government of India with a mandate to finance, facilitate and promote India’s foreign trade.
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, cooperation 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.
The MoU was signed by Khaled Al Aboodi, the Chief Executive Officer and General Manager of ICD, and Tarun Sharma, Regional Head of Exim Bank at the ICD headquarters in Jeddah on Monday.
Al-Aboodi said: “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.”
Tarun Sharma said “since its inception, Exim Bank has been both a catalyst and a key player in the promotion of cross border trade and investment. We remain committed to support Indian exporters to enter new markets in their bid to expand and we are convinced that our cooperation with ICD will serve that very purpose and will be mutually beneficial for both parties.”
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD 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 Shariah. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises.
Exim Bank of India’s mandate is to finance, facilitate and promote India’s international trade and to coordinate the working of institutions engaged in export and import-related services aimed at the globalization of Indian companies. — SG
