The International Islamic Trade Finance Corporation (ITFC) has carried out 36 trade finance operations with a total value of $1.253 billion in favour of 16 countries in the first half of the year.

“These results reflect our continued efforts to advance trade by contributing to the development of markets and trading capacities to help member countries do business more effectively, in addition to being catalysts for economic solidarity, to facilitate and develop trade through the establishment of new trade links among the Organization of Islamic Conference (OIC) member countries,” said Dr Waleed Bin Abdul Mohsen Al-Wohaib, CEO of ITFC.

The report showed that public sector trade finance operations amounted to $816 million, which accounts for 65 per cent of the total finance operations in the first half, while the private sector operations amounted $437.1 million over the same period.

Given the ITFC's overall objective of being a catalyst for increased intra-trade, the lion’s share of trade financing went to OIC member countries, which received more than 80 per cent or $1.014 billion of the total value of the trade finance operations, while non OIC member countries received $239 million for the same period.

Al-Wohaib added: "One of the ITFC's primary objectives is to enhance the economic welfare of least developed member countries and our mid-year financial results reflects this orientation as the volume of trade finance for the least developed member countries (LDMCs) reached $501 million or 40 per cent of the total finance operations.”

"By providing LDMCs with funds for trade helps to bring prosperity by supporting the growth and development of economic sectors that expand and diversify business opportunities, in addition to helping to alleviate poverty through trade financing that contributes to the preservation of jobs and creation of new employment opportunities,” he added.

Geographically, Asia and CIS member countries accounted for the largest portion of the trade finance volume, representing 51 per cent of the total trade finance operations in the period covered.

This is in line with the general orientation of Islamic Development Bank Group, of which ITFC is a member, to expand its trade finance operations in Asia while establishing and providing greater trade finance support to countries of the CIS, a statement said.

Additionally, ITFC increased the amount of resources mobilized significantly during this period. The amount mobilized from external resources reached $476.6 million, representing more than 38 per cent of the total value of trade finance operations, it added. – TradeArabia News Service