OIC Economies

July OIC news wrap: Turkey, GCC countries ink deals; Saudi intensifies net-zero quest; and more

Here's a roundup of key developments across OIC countries in the month of July.

Editor's note: The Turkish President's recent trip to the GCC to shore up investment was a fruitful one. His visit marked the signing of 16 cooperation agreements between his country and Saudi Arabia, and another $50 billion in deals with the UAE. This also builds on the comprehensive economic partnership agreement ratified by the UAE and Turkey earlier this year, to push bilateral non-oil trade to beyond $40bn in the next five years. 

Meanwhile, Saudi Arabia is accelerating in its quest for net-zero emissions, exploring clean energy alternatives, partnering with cross-border entities on green projects, as well as shoring up financial support for the world's largest solar project. 

ESG Developments – Saudi Arabia / Japan
Saudi Arabia, Japan launches initiative for clean energy cooperation
Saudi Arabia's King Abdullah Petroleum Studies and Research Center (KAPSARC) and the Institute of Energy Economics, Japan (IEEJ) have entered into an agreement to collaborate on strategies for achieving their respective net-zero emission targets.

The agreement is part of the Saudi-Japan Lighthouse Initiative for Clean Energy Cooperation, which aims to provide a blueprint for other countries seeking to reduce their carbon emissions(Arab News)

ESG Developments – Saudi Arabia 
Saudi's ACWA Power consortium commits $2.2bn for Al-Shuaibah solar projects
Saudi Arabia is accelerating its efforts towards creating the world's largest solar project.

Saudi's ACWA Power, along with its consortium, has finalised the $2.2 billion financing for the Al-Shuaibah 1 and Al-Shuaibah 2 solar projects.

The funding mix includes senior debt and equity, with contributions from the National Development Fund and various local and international banks. (Arab News)

ESG Developments – Saudi Arabia 
Engie, PIF to develop hydrogen projects in Saudi Arabia
Engie, a global leader in low-carbon energy and services, has signed a memorandum of understanding (MoU) with Saudi Arabia's Public Investment Fund (PIF) for the joint development of green hydrogen projects.

The partnership, in line with Saudi Vision 2030, will focus on creating green hydrogen production projects for export. (Hydrogen Central)

ESG Developments – UAE / Pakistan 
UAE, Pakistan business relations strengthen, new deal to explore renewable energy projects
The UAE and Pakistan have signed a memorandum of understanding (MoU) to develop renewable energy projects in the subcontinental country.

The agreement was signed during the visit of Dr Sultan Ahmed Al Jaber, the UAE's Special Envoy for Climate Change, to Pakistan.

Sharif al Olama, the UAE's Undersecretary of the Ministry of Energy & Infrastructure, and Rashid Mahmood Langrial, Secretary Power Division of Pakistan, formalised the agreement. (Zawya)

ESG Developments – Saudi Arabia 
Saudi's PIF inks agreement with Japanese power generator JERA to develop green hydrogen
Saudi Arabia's Public Investment Fund has signed a memorandum of understanding (MoU) with JERA Co., Inc., Japan's largest power generator, to explore the potential for developing green hydrogen projects.

The agreement will initiate feasibility studies for creating green hydrogen and derivative projects aimed at both domestic and international markets. (Zawya)

Trade Developments – UAE / Mozambique 
UAE, Mozambique sign deal in workforce field
The UAE and Mozambique have inked a Memorandum of Understanding (MoU) aimed at enhancing management of the contractual work cycle for Mozambican workers in the UAE.

Signed by Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation (MoHRE) in the UAE, and Margarida Adamugy Talapa, Mozambique's Minister of Labour, Employer and Social Security, the deal seeks to create increased job opportunities for Mozambican workers in the UAE while ensuring their rights in the working environment. (Zawya)

Trade Developments – Saudi Arabia / Turkey 
Saudi Arabia and Turkey sign 16 cooperation agreements
Saudi Arabia and Turkey have signed 16 cooperation agreements across various fields and investment sectors, valued at over SR2.3bn.

The agreements, signed at the Saudi-Turkish Business Forum in Istanbul, cover areas such as real estate development, construction, and engineering consultancy. The forum aimed to enhance partnerships and explore investment opportunities in urban development, building, contracting, and smart cities(Saudi Gazette)

Trade Developments – Oman / Morocco
Oman, Morocco sign agreements to enhance cooperation in rail transport
Oman and Morocco have inked four new bilateral agreements spanning maritime transport, diplomatic training, consumer protection, and rail cooperation.

The agreements, signed at the Omani-Moroccan Joint Committee's sixth session, signal greater cooperation in economics, culture, science, and technology fields, offering ample opportunities for the private sectors of both nations. (The Arabian Stories)

Trade Developments – UAE / Turkey
Turkiye, UAE sign $50bn in deals to boost strategic ties
Turkiye and the UAE have signed agreements amounting to $50 billion to strengthen investments across strategic sectors.

The deals, part of Turkish President Recep Tayyip Erdogan's UAE visit, include the establishment of a high-level strategic council to bolster ties. These accords are intended to diversify the UAE-Turkiye Comprehensive Economic Partnership Agreement framework, aiming to maximize bilateral trade and investment, and potentially create numerous jobs. (Arab News)

Trade Developments – Saudi Arabia / Oman
Saudi Arabia enhances cooperation with Oman as PIF signs MoU with OIA 
Saudi Arabia's Public Investment Fund (PIF) has entered a memorandum of understanding with the Oman Investment Authority to strengthen economic ties.

This partnership will facilitate PIF and its associated entities in capitalizing on investment prospects in Oman. In 2022, trade between the two nations rose by 123% year-over-year, totaling $7.01 billion. (Arab News)

Investment – Bangladesh
ITFC signs $1.4bln energy security financing plan with Bangladesh
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group, has pledged $1.4 billion to assist Bangladesh with oil imports for a year, starting July 2023.

The agreement underscores ITFC's commitment to aiding its member states' economic development and ensuring energy security for fast-growing economies like Bangladesh. (Zawya)

Investment – Bangladesh
Bangladesh Seeks $900M in Loans from ITFC for Energy Imports
Bangladesh Petroleum Corp. (BPC) is set to secure an added $400 million in loans from the International Islamic Trade Finance Corp (ITFC) for petroleum imports, as revealed by a government document.

This is atop a $1.4 billion loan BPC agreed with ITFC in May for the same purpose, extending until June 2024. Concurrently, Petrobangla is aiming to borrow $500 million from ITFC for liquefied natural gas imports. (BNN Bloomberg)


Saudi Arabia
Intra-OIC trade
Trade agreements
OIC trade