JEDDAH — The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IsDBG), signed with Asia Alliance Bank (AAB) a $10 million Line of Financing Agreement to support small and medium enterprises (SMEs) in Uzbekistan and an Advisory Agreement on launching an Islamic Window on behalf of the Bank.

Umidjon Khakimov, First Deputy Chairman of the Board of AAB and Ayman A. Sejiny, CEO of ICD, signed the Line of Financing Agreement for a $10 million facility and the Advisory Agreement on launching an Islamic Window for the Bank on Wednesday at ICD’s Headquarters in Jeddah.

The $10 million Shariah-compliant Line of Financing facility based on Wakala structure will be utilized by AAB to provide financial support to the private sector in Uzbekistan, including SMEs through Islamic modes of financing.

This financing is the third Shari’ah - compliant facility for AAB, which will enable the institution to expand Shari’ah -compliant product offerings along with other banking services.

The intended Islamic Window will create an opportunity for AAB to be one of the foremost wholly profit-sharing vehicles, offering Islamic products & services in Uzbekistan. As a result, the AAB will diversify its products and sources of funding and increase its profits.

Sejiny said: “For the past years cooperation between ICD and Uzbekistan has been developing at a dynamic pace, especially in the financial sector. We entrusted our partners including AAB the task of attracting foreign direct investment for further financing of potential projects and help develop the private sector. Asia Alliance Bank is cooperating with ICD to raise funds based on the Wakala structure and set up an Islamic Window in order to carry out the tasks as set.”

Khakimov added: “Our collaboration with ICD will be considered as another key milestone toward customers satisfaction. Through the Line of Financing and the Islamic Window, we will be able to expand outreach to more clients using Shariah-compliant financing.” — SG