Arab states, ITEC, sign MoU on trade

The Economic Affairs Sector of League of
Arab States and the International Islamic Trade Finance Corporation
(ITFC) have signed a Memorandum of Understanding (MoU) to accelerate
cooperation in the development of intra-Arab trade.

 

ITFC is a member of the Islamic Development Bank Group.

 

Signed during the Ministerial 
meeting of the Economic and Social Council of the League of Arab
States (LAS) and ITFC in Cairo, Egypt, the MoU outlines clear objectives
aimed at enhancing trade capacities and improving structures and
mechanisms of trade cooperation among Arab countries.

 

As part of the agreement, LAS and ITFC
have solidified their commitment to jointly coordinate the design,
financing and implementation of technical assistance and capacity
building programs as well as tackling issues related to
the development of intra-Arab trade.

 

The MoU will also enable both parties to
achieve their objectives of enhancing trade capacities among Arab
countries as outlined in the ten-year work program adopted by the
Islamic Summit Held in Makkah, as well as the Arab summit
(the Jerusalem summit – Dhahran).

 

“The signing of this MoU is an important step towards enabling cooperation between the League of Arab States and ITFC.

 

With our shared goals of achieving Arab
economic integration and enhancing trade and capacity building
activities within the region, we are very optimistic about the
opportunities that will arise from this collaboration.

 

This is an important step towards
accelerating the process of trade development of Arab nations and their
participation in the regional and global market,” said Eng. Hani Salem
Sonbol, ITFC Chief Executive Officer.

 

Ambassador Kamal Hassan Ali, Assistant
Secretary-General for Economic Affairs at the League of Arab States
said: “The signing of this MoU will establish a legal basis for the
cooperation between the League of Arab States and the
International Islamic Trade Finance Corporation.’’

 

“ It will open up new prospects of
collaboration which will certainly be reflected on the completion of the
requirements of the Greater Arab Free Trade Area and therefore the Arab
Customs Union. 

 

“Particularly, a decision has been
communicated to the Economic and Social Council, at its current session,
to further develop the Greater Arab Free Trade Area and conform with
the World Trade Organization, as well as to similar
regional agreements, which will positively affect the positioning of
the intra-Arab trade.’’

 

Initial programmes agreed under the
memorandum of understanding, such as the Arab Africa Trade Bridges
Program and the second phase of the Aid for Trade Initiative for Arab
States (AfTIAS) Program have been earmarked for rollout
in a bid to meet set objectives towards strengthening cooperation
between the two parties.

 

The MoU will support the Greater Arab
Free Trade Area through hosting regional training courses, conferences
and workshops covering trade development area.   

 

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group.

 

It was established with the purpose 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.

 

Commenced operations in January 2008 ,
ITFC has since consolidated all trade finance businesses that used to be
handled by various windows within the IsDB Group.