Here's a roundup of key developments across the OIC ecosystem during the month of March

Editor's Note: The OIC bloc has been dominating headlines this month, from welcoming Syria's reinstatement to the border demarcation agreement between Kyrgyzstan and Tajikistan. 

Meanwhile, Saudi-headquartered IsDB commits north of a $1 billion to advance development goals across select member countries. 

Trade Developments

Oman / Pakistan

Oman and Pakistan keen to attract more investments, simplify trade procedures

The Minister of Commerce, Industry and Investment Promotion of Oman met with the Federal Minister of Commerce of Pakistan to discuss ways to strengthen economic relations between the two countries.

The meeting focused on promoting promising sectors, improving the business environment, attracting investments, simplifying trade procedures, and boosting trade exchange. (Zawya)

UAE / Bangladesh

Sharjah Chamber, Dhaka Chamber of Commerce and Industry sign MoU
The Sharjah Chamber of Commerce and Industry and the Dhaka Chamber of Commerce and Industry (DCCI) have signed a memorandum of understanding (MoU) to strengthen trade relations and develop economic partnerships between the business communities of the two countries.

The MoU aims to enhance cooperation between private sector enterprises, highlight investment opportunities, encourage growth in target markets, and promote products and services through collaboration in specialized trade exhibitions. (Zawya)

Investment

Uzbekistan

ICD, Turonbank to support private sector growth in Uzbekistan

The Islamic Corporation for the Development of the Private Sector (ICD) and Private Joint-Stock Bank "Turonbank" have signed a $30 million Islamic line of financing facility to support small and medium-sized enterprises (SMEs) and the private sector in Uzbekistan.

The new financing facility, channeled through Turonbank, aims to provide entrepreneurs with financial resources to launch and expand their businesses, driving sustainable economic growth.  (Zawya)

Saudi Arabia

IsDB commits over $1.4 billion to advance development goals across eight member countries

The Islamic Development Bank (IsDB) has approved over $1.4 billion in funding to support Sustainable Development Goals (SDGs) in eight member countries.

The approved projects cover sectors such as food security, health, education, transportation, sanitation, and urban development. (Middle East Economy)

Regulatory

Kyrgyzstan / Tajikistan

OIC welcomes border demarcation agreement between Kyrgyzstan, Tajikistan

The OIC General Secretariat welcomed the signing of the border demarcation agreement between Kyrgyzstan and Tajikistan.

The OIC Secretary-General congratulated the two countries on the achievement, which resolves decades-long disputes, restores understanding and harmony, strengthens mutual trust, and boosts cooperation and good neighborly relations between the two countries and their peoples. (The Nation)

Syria

OIC announces reinstatement of Syria's membership

The Council of Foreign Ministers of the Organisation of Islamic Cooperation (OIC) has decided to reinstate the membership of the Syrian Arab Republic in the OIC.

The council has assigned the OIC Secretary-General to take the necessary steps to implement this decision and to submit a report at the next session of the Council of Foreign Ministers. (Emirates News Agency)

Here's a roundup of key developments across the Islamic finance ecosystem during the month of March.

Editor's note: There is an undisputable rise in demand for Shariah-compliant services, which is prompting banks across the world to take notice.

Pakistan's Samba Bank Limited recently announced its intent to convert to an Islamic banking institution, falling in lockstep with the country's overall ambition to usher in an interest-free banking system.

Meanwhile, an IsDB entity is looking to boost SME financing in Bangladesh.   

Company News

UAE

AlHuda CIBE launches internship program for Islamic finance

The AlHuda Centre of Islamic Banking and Economics (CIBE) has launched its 8th Global Virtual Internship Program, aimed at enhancing global expertise in Islamic banking and finance.

The program, which commenced during the Covid-19 pandemic, has drawn 250 participants from 40 countries, providing a two-month educational experience for professionals and students in various financial sectors such as banking, insurance, and capital markets. (Zawya)

Pakistan

Samba Bank announces plans to transition to Islamic banking

Pakistan-based Samba Bank Limited, a subsidiary of the kingdom's Saudi National Bank, has announced its plans to transition from a conventional bank to an Islamic one.

The decision was disclosed in a notice to the Pakistan Stock Exchange and involves submitting a tentative conversion plan to the State Bank of Pakistan.

The move is part of a broader trend in Pakistan, where Islamic banking has experienced substantial growth due to increased demand, regulatory backing, and the availability of Shariah-compliant financial products. (Business Recorder)

Saudi Arabia

Universal Postal Union explores collaboration with IsDBI 
The Islamic Development Bank Institute (IsDBI) met with a delegation from the Universal Postal Union (UPU) to explore collaboration on enhancing postal financial services using Islamic finance principles.

The meeting, attended by representatives from both organizations, focused on creating innovative financial solutions appropriate for IsDB's member countries and addressing the needs of customers in diverse geographic areas. (Zawya)

Global

Xlence launches Shariah-compliant trading product 
Xlence, an international CFD broker, has launched Islamic/Swap-Free accounts tailored for traders adhering to Islamic finance principles. These accounts comply with Sharia law by eliminating interest-based transactions. (Mondovisione)

Investment

Bangladesh

ITFC signs Murabaha agreement to boost SMEs financing in Bangladesh

The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank Group, signed a Master Murabaha Agreement with Mutual Trust Bank in Dhaka to boost trade finance support for SMEs and the private sector in Bangladesh.

This agreement will enhance Mutual Trust Bank's capacity to support cross-border trade and SME growth, reflecting a shared commitment to economic development in the country. (Zawya)

Saudi Arabia / Uzbekistan

ICD, Turonbank strengthen partnership to support private sector growth

The Islamic Corporation for the Development of the Private Sector (ICD) and Turonbank have partnered to boost Uzbekistan's private sector by signing a $30 million Islamic financing facility.

The initiative is focused on supporting small-and-medium-sized enterprises (SMEs) through financial resources aimed at fostering project launches and expansions, ultimately enhancing sustainable economic growth and resilience in Uzbekistan. (Zawya)

Saudi Arabia’s modest fashion platform, Aya has secured $1.6 million (6 million Saudi riyals) in seed funding to revolutionize the modest fashion industry.

The latest funding round, led by Khwarizmi Ventures and investor Turki Alrajhi, included contributions from Saudi venture capital firm Raed Ventures, investment firm Joa Capital, and FENA Holdings.

Aya seeks to unify the modest fashion market - particularly the multi-billion dollar Abaya segment - through a single, trend-focused discovery platform. The company plans to empower local manufacturers to create on-demand fashion in response to shifting consumer interests. 

Munira Al Kadi, co-founder and CEO of Aya, said that investment is more than capital.

"We’re entirely changing the game, and we’re looking for fearless, entrepreneurial talents to join our mission."

Aya aims to deploy the funds to bolster its product development efforts, broaden its market reach, and enhance the overall customer experience. The global modest fashion industry was valued at $295 billion in 2024 and is projected to reach $375 billion in 2025, according to DHL.

By expanding its offerings and tapping into the growing demand for modest fashion, Aya aims to solidify its position as a leading platform catering to consumers seeking both style and cultural relevance.

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the Central African Republic is expected to boost bilateral trade beyond $1 billion (3.67 billion dirhams) over the next five to seven years. 

The CEPA, signed last week, will create further growth and prosperity opportunities for business communities in both countries, Dr. Thani bin Ahmed Al Zeyoudi, UAE’s minister of state for foreign trade told the state-run news agency WAM. 

The agreement will offer a high level of trade liberalisation, with the UAE granting a 98% tariff removal for goods from the Central African Republic, with the latter extending a 99.5% tariff removal for UAE exports, he added. 

The CEPA offers investment opportunities across service sectors, including telecommunications, hospitality, logistics, and financial technology. 

It will also enhance trade and investment cooperation in strategic sectors such as aluminium, ceramics, petrochemicals, iron, silver, gold, food products, and textiles. 

Al Zeyoudi added that the partnership focuses on advancing collaboration in future economic sectors, particularly digital economy and advanced technology. It also paved the way for new opportunities for small and medium enterprises in both countries.

Non-oil bilateral trade reached $252 million (925 million dirhams) in 2024, rising 75% on the previous year.  The UAE’s non-oil exports to the Central African Republic include consumer goods such as food products, textiles, and electronics, as well as machinery and pharmaceuticals. The Central African Republic exports agricultural products, including coffee, cotton, and cassava to the UAE, in addition to gold and diamonds.

The UAE’s CEPA programme, launched in September 2021, aims to increase the country’s non-oil trade to $1.1 trillion by 2031. It helped gain access to high-growth markets, bumping the UAE’s trade volume by 14.6% annually to reach $816 billion in 2024. 
 

Saudi Arabia-based food production company Al Watania Poultry has entered into a strategic partnership with Halal Products Development Company (HPDC), a subsidiary owned by the kingdom's Public Investment Fund (PIF). 

The agreement aims to capitalize on the rising demand for halal products and expand Saudi Arabia's poultry exports to diverse global markets.

The collaboration also focuses on accelerating sustainable and innovative practices within the halal food sector. 

"Our partnership with HPDC represents a strategic milestone to strengthen our leading position in the poultry sector and unlock new growth opportunities," said Mohammed bin Hamad Al Shaya, acting CEO of Al Watania Poultry.

Turkiye has increased its egg exports to the United States in response to an avian flu outbreak that has severely affected the America poultry sector.

With nearly 150 million birds culled in the US to contain the H5N1 virus and egg prices rising by as much as 95% year-on-year, the demand for eggs has surged, creating an opportunity for the transcontinental country to step in and fill the supply gap.

According to İbrahim Afyon, president of the Egg Producers' Central Association (YUM-BİR), Turkish authorities have approved several companies to export packaged eggs to the US.

"Currently, 15,000 tonnes of eggs requested by the US will be split among four companies, although more firms may join the export program," Afyon told local media.

The 15,000 tonnes of eggs destined for the US will be shipped in phases until July this year. Officials are confident that the increase in production capacity will allow Turkiye to maintain the 200,000-tonne export volume reached in 2024 across its 55 existing markets.

Turkiye's capacity to meet US demand stem from its strong position in the global egg industry. The country, which ranks amongst the top 10 egg producers globally, netted less than $400 million in foreign exchange in 2018 via exports of one-third of its output to select countries. By 2024, its exports have reached 55 countries and generated $463 million, with the sector targeting $500 million in 2025.

Unlike many countries that have suffered heavy production losses due to widespread avian flu and other poultry diseases, Turkiye has largely contained outbreaks despite being located on a major migratory bird route.