The Islamic Corporation for Development of the Private Sector (ICD) intends to establish the investment fund in Tajikistan to support small and medium-sized enterprise (SME) business there, according to the National Bank of Tajikistan (NBT).
This issue was reportedly discussed on February 17, at the meeting of the NBT head Jamshed Nourmahmadzoda with the ICD Chief Executive Officer (CEO) Khaled Mohammed Al-Boodi.
The two sides also discussed issues related to prospects of expansion of cooperation between Tajikistan and ICD in the fields of hydropower and banking, particularly development of Islamic banking in Tajikistan.
ICD and Open Joint-Stock Company (OJSC) Agroinvestbonk of Tajikistan on January 4, 2016 signed a memorandum of understanding (MoU) for cooperation to consider extension of a Line of Financing facility to OJSC Agroinvestbonk as part of the country program allocation of $25 million for Tajikistan.
The Line of Financing facility was extended by OJSC Agroinvestbonk to the SMEs sector to project’s in industrial, communication, technology, health, construction and agricultural sectors.
Previously ICD extended a total of $11.5 million Line of Financing facility for the development of Small and Medium Enterprises in Tajikistan.
ICD is a multilateral organization and a member of the Islamic Development Bank (IsDB) Group. Its shareholders include the Islamic Development Bank (IsDB), 54 member countries, including Tajikistan, and five public financial institutions. Established by IsDB Board of Governors in November 1999, ICD is headquartered in Jeddah.
The mandate of ICD is to support the economic development of its member countries through provision of finance and equity investments to private sector projects in accordance with the principles of Islamic finance. ICD finances and invests in projects that are specifically geared to creating employment opportunities and boosting exports. Furthermore, ICD mobilizes additional resources for projects and encourages the development of Islamic financing and capital markets. It also attracts co-financiers for its projects and provides advice to governments and private sector groups on policies aimed at encouraging the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhancing the role of market economy. (News.tj/Business World Magazine)