The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), member of the Islamic Development Bank (IsDB) Group, has launched a new Trade Development Fund (TDFD) with an initial target capital of US$50 million to support trade development projects in member countries of the Organisation of Islamic Cooperation (OIC) and Muslim communities in non-member countries.
The Fund is a Waqf, which from a Shariah perspective means endowed assets and restricting disposing of them, whilst the benefits are for charitable causes.
The Fund will utilize investment returns for grants or concessional financing linked to the design and delivery of trade activities, raising awareness or knowledge sharing of trade-related issues and trade related technical assistance. The Fund endowed resources will be invested in Shariah-compliant investments, with 50% of returns allocated for operational purposes and the other 50% going towards the principal to increase the fund. This operating model will enable the fund to grow over time as a sustainable funding platform.
The fund has so far extended support to address needs of member countries to fight the socio-economic effects of COVID-19, particularly with regards to the provision of food and essential medical supplies amongst others.
Commenting on the new ITFC Trade Development Fund, Eng. Hani Salem Sonbol, ITFC CEO, said: “The ITFC Trade Development Fund will enable us to go even further in providing charitable resources for the onward funding of trade related initiatives and interventions to promote and develop trade within and between OIC member countries and also reach out to Muslim communities in non-OIC member countries, enhancing import-export trade activity across the Muslim world.”
In addition to the reinvestment of returns into the fund, future capital will also come from contributions by ITFC and member countries, institutions, and contributions from individuals in member and non-member countries.Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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The ITFC Trade Development Fund (TDFD) is a Shariah compliant fund with an initial target capital of US$50 million that is managed by the International Islamic Trade Finance Corporation. The TDFD commenced operation on 6/5/1441H (1/1/2020) to support and enhance trade activity between member countries of the Organisation of Islamic Cooperation. It is also mandated to provide assistance in emergencies such as the COVID-19 pandemic.
The Fund invests its endowed resources in a variety of assets, 50% of all returns are provided for operational purposes whilst the other 50% is put towards increasing the fund, which will serve to enhance the resilience of communities, SMEs and trade between OIC member countries and across the Muslim world.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$51 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.