The activities of the ITFC include
financing of intra-regional trade,
in accordance with the Islamic
principles, and development of
the export capacity of the member
countries through its Trade Promotion
and Cooperation Program. Since
its inception, the ITFC has extended
nearly US$ 30.5 billion in trade financing,
of which it allocated nearly 47% to the
least developed member countries. It
has also organized and supported more
than 200 operations in the areas of
development and trade facilitation. The
ITFC also contributed to the aid-for-trade
initiative--one of the global initiatives
aimed at strengthening the capacity of
developing countries to participate in
and benefit from international trade.
Conclusion
International trade has a key role to play
in promoting economic growth and,
ultimately, helping to alleviate poverty
in developing countries.
In this respect, additional efforts
are needed to develop and improve
the export capacity of developing
countries by fostering investment in their
infrastructure, transport networks and
education, and by facilitating productive
foreign direct investment into the export-
oriented sectors of the economy.
To the extent that many developing
countries continue to face challenges
that prevent them from accessing
conventional trade finance, there is also
a need to explore all new, alternative
trade finance options.
The ITFC also contributed to the aid-for-
trade initiative - one of the global initiatives
aimed at strengthening the capacity of
developing countries to participate in
and benefit from international trade.
The contribution of Islamic finance will
be critical in this context. With its growing
role at the global level, it provides new
and innovative ways for the financial
institutions to diversify their sources of
funding. Furthermore, given the wide
range of Islamic financial products that
the banks can now offer to importers
and exporters, Islamic finance can help
ensure that global trade continues to
expand and fosters economic growth,
especially among small and medium
sized enterprises.
The IsDB Group will continue its
efforts to provide innovative Shariah-
compliant financial solutions to ensure
that millions of people across the
world are able to benefit from growth
opportunities offered by international
trade. The Group will also continue to
make sure that international trade brings
about growth that is inclusive and does
not leave any section of the society
behind by facilitating targeted, solidarity
based interventions aimed at the most
vulnerable segments of the society. ■
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