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RIYADH: Turkiye’s private sector is poised to benefit from Murabaha financing, with two of the country’s banks signing a total funding deal of $40 million with the International Islamic Trade Finance Corp.
ITFC, a member of the Islamic Development Bank Group, has announced the completion of two Murabaha financing deals valued at $20 million each with Vakif Katilim Bank and Ziraat Katilim Bank, the Saudi Press Agency reported.
Signed during the 39th session of the Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation, the agreement specifies that the funds will be directed toward supporting private sector clients and small and medium enterprises served by the two banks to meet their trade financing requirements.
Murabaha, an Islamic financing structure, operates as a sales contract wherein the price of goods or items is determined based on customer requirements, including a pre-agreed profit margin.
This initiative aligns with ITFC’s mission to promote sustainable economic development in member countries, and the corporation’s CEO Hani Salem Sonbol explained that these new deals represent a crucial step in enhancing commercial and economic activities, fostering further growth in the country’s private sector.
Additionally, they will play a pivotal role in promoting sustainable development and prosperity for the private sector and SMEs in the country, Sonbol stressed.
Solar project in Senegal
In another development, Senegal is set to install up to 50,000 solar streetlights in rural areas, thanks to a new agreement signed by the Islamic Corp. for the Insurance of Investment and Export Credit.
The IsDB member announced a project financing worth €103 million ($111 million) in cooperation with Standard Chartered Bank for Senegal’s Ministry of Finance to purchase and install solar streetlights.
This initiative aligns with the country’s pursuit of green renewable energy goals, coinciding with the climate conference held in Dubai.
“Our cooperation for a solar street lighting project in Senegal is a testament to our commitment to sustainable development in our member states and stimulating economic growth in rural areas in line with the sustainable development goals,” said Oussama Kaissi, CEO of the ICIEC.
The project aims to utilize solar energy for street lighting in rural areas of Senegal, enhancing the quality of life dependent on continuous access to energy and promoting economic growth.
“This loan is the first green loan to adopt environmentally friendly energy practices provided by the bank to Senegal, which in turn will improve the lives of local communities while supporting the climate goals of the Senegalese government,” said Sunil Kaushal, CEO of Standard Chartered Bank in Africa and the Middle East.
From an environmental standpoint, the project relies on adopting environmentally friendly energy practices to reduce carbon emissions.