https://arab.news/cjrrq
RIYADH: Saudi-based International Islamic Trade Finance Corp. has signed a $10 million agreement with the Asia Alliance Bank to bolster trade funds for Uzbekistan’s private sector.
As part of the deal, the corporation will provide a $10 million financing arrangement to address trade budget needs, prioritizing small and medium-sized enterprises.
According to a statement by ITFC, this line of funding will specifically address import and pre-export requirements for private sector clients, including SMEs, in Uzbekistan, following the Murabaha structure in line with Shariah principles.
This collaboration with Asia Alliance Bank is ITFC’s first banking partner in Uzbekistan.
“Since 2018, ITFC has allocated US$19 million in financing to Asia Alliance Bank, reflecting our longstanding commitment to fostering economic growth and development in the country,” Nazeem Noordali, chief operating officer at ITFC said.
He added: “This latest agreement further solidifies ITFC’s dedication to supporting the private sector and SMEs in Uzbekistan.”
In support of 12 banks in Uzbekistan, the ITFC has issued line of trade finance facilities worth $423 million since 2018, highlighting the corporation’s significant contributions to the country’s trade funding landscape.
“The conclusion of this agreement is aimed at maintaining and promoting the sustainable development and prosperity of small and medium-sized businesses in Uzbekistan, through the provision of financing that complies with Shariah principles,” Obidjon Norkulov, first deputy chairman of the bank’s management board commented.
He added: “The allocated $10 million will be used to support Asia Alliance Bank’s SME clients in meeting their trade finance needs.”
On Feb. 14, ITFC signed a $90 million Murabah agreement with Djibouti to secure energy supply through the import of petroleum products.
The International Hydrocarbons Co. of Djibouti, also known as SIHD, will serve as the executing agency.
ITFC, a member of the Islamic Development Bank, and the Republic of Djibouti have enjoyed a longstanding relationship, with a total of $1.6 billion approved by the corporation in favor of the country with 33 operations targeting the energy and health sectors.
This initiative fosters intra-OIC trade, as the petroleum products will be sourced mainly from other member countries of the Organization of Islamic Cooperation.