International Islamic Trade Finance launches trade development fund to support intra-OIC trade initiatives

Jeddah – 27 July 2020: The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has launched a new Trade Development Fund (TDFD) with an initial target capital of US$50 million to support trade development projects in member countries of the Organisation of Islamic Cooperation (OIC) and Muslim communities in non-member countries.

The Fund is a Waqf, which from a Shariah perspective means endowed assets and restricting disposing of them, whilst the benefits are for charitable causes.

The Fund will utilize investment returns for grants or concessional financing linked to the design and delivery of trade activities, raising awareness or knowledge sharing of trade-related issues and  trade related technical assistance. The Fund endowed resources will be invested in Shariah-compliant investments, with 50% of returns allocated for operational purposes and the other 50% going towards the principal to increase the fund. This operating model will enable the fund to grow over time as a sustainable funding platform.