ITFC sponsors 6th Middle East Trade and Export Finance Conference 2009

Participating in the section devoted to Islamic Finance in Trade & Export Finance, Mr. Hani Salem Sonbol, ITFC Deputy CEO, addressed the conference with a keynote speech titled 'Islamic Trade Finance - Opportunities and Challenges, a New Perspective.'

In his speech, Mr. Sonbol, said:

"Now celebrating its 6th year, the Middle East Trade & Export Finance Conference is an important annual event that has become established as the region's premier trade finance gathering."

"High on this year's agenda is the effect of the global credit crunch on the Middle East, with a focus on the challenges of enhancing OIC intra-trade and finding alternative avenues that offer a new approach to trade financing. ITFC participation in this year's conference emphasizes the growing importance of Islamic trade finance and highlights the pioneering role that the Islamic Development Bank Group has played in promoting Shariah compliant trade financing as a way to economic development," he added.

Mr. Sonbol went on to say, "Given the potential and resource endowments of member countries, OIC intra-trade is far below the desired level. Individual states and regional groupings need to play a more active role in economic integration schemes, identify and remove tariff and non-tariff barriers to trade and remove them, and ratify pacts that have already been approved by the OIC countries."

Going further, Mr. Sonbol called for better structuring of laws and regulations that govern the investment climate in member countries, pointing out that deregulation does not work, while over regulation stifles economic activity, and stating the opinion that there should be less economic ideology and more economic pragmatism.

He also stressed the need for OIC member countries to improve infrastructure facilities, especially transportation, and to cooperate and coordinate more closely to achieve diversification and avoid producing the same basic products and commodities, and also to avoid situations where exports to a specific country go through a third party.

Expressing the need for a new approach and innovative solutions, Mr. Sonbol stated that the ITFC plans to align its trade financing with intra-OIC trade patterns and increase its Trade Promotion enhancement programs to target the less dynamic intra-OIC trading partners.

Mr. Sonbol concluded his speech by saying, "During this critical time, with our 30 year heritage of success and integrity as a champion of Shariah-compliant trade financing, ITFC is uniquely positioned to take the lead in offering solutions that respond to the challenges of the global financial crisis."

Since 1977, the IDB Group has provided in excess of $32bn in trade finance funding and the ITFC in 2008, its first year of operations as an independent member of the IDB Group, financed trade operations amounting to $2505.35m, with $1280.75m allocated to Asia and the CIS, $989.5m to MENA, and $235.11m to Sub Saharan Africa.

With the overarching objective of improving lives by advancing trade, the ITFC acts as a catalyst to bring together international, regional and local organizations to promote intra-trade among OIC member countries. Backed by the unparalleled economic strength of the IDB, ITFC reassures markets, secures trade financing and helps to ensure successful trade in less developed member countries by being directly involved in the entire transaction cycle.