22 August 2010
JEDDAH: The Islamic Corporation for the Development of the private Sector (ICD) has signed a Memorandum of Understanding (MoU) with
Bahrain-based Al-Baraka Banking Group to jointly provide Islamic financing services.
The two parties also agreed to cooperate and work with each other on a non-exclusive basis to develop and enhance their relationship to their mutual benefit in areas of their business. ICD is the private sector arm of the Islamic Development Bank Group.
The MoU was signed on Thursday by Khaled Al-Aboodi, CEO and general manager of ICD, and Adnan Ahmad Yousef, chief executive officer of Al-Baraka Banking Group.
Al-Aboodi said, "The MoU is to set out BRoad guidelines whereby the parties can develop their relationship and work toward the development of the Islamic financial services sector and to enable both parties, either individually or through their subsidiaries or affiliates, to extend Islamic retail and corporate finance facilities to clients in Islamic countries."
As part of the MoU, the two parties will organize the invest surplus liquidity and provide and exchange information relating to increasing awareness of the Islamic products as well as the establishment of joint ventures by way of investment companies and funds to further advance the cause of Shariah-compliant finance and investment.
The specific agreement deals with Lines of Credits and banking facilities. Both agreed to cooperate in opening various types of accounts, undertake all kinds of investment activities and accept deposits in various currencies.
The cooperation would also extend to offering banking and financing services including long and short term co-financing and the co-management of assets and funds, and carrying out foreign transactions.
Both the parties are looking at investments as the key area of cooperation. The MoU specifically calls for investing funds in instruments developed by each other through structured financial services including, without limitation, Mudaraba, Murabaha, Musharaka, Istisna'a, Salam transactions, Ijara and other investment instruments.
© Arab News 2010
