© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Private Sector Investment in Islamic Countries
Posted 7th June 2017

Private Sector Investment in Islamic Countries

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a subsidiary of the Islamic Development Bank (IDB) Group. Established in 1999, ICD currently has an authorised capital of $4 billion and a membership of 53 countries. We in

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Private Sector Investment in Islamic Countries

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a subsidiary of the Islamic Development Bank (IDB) Group. Established in 1999, ICD currently has an authorised capital of $4 billion and a membership of 53 countries. We invited them to write about the firm’s mandate as well as their hopes and plans for the future.

ICD supports the economic development of its member countries through the provision of finance for private sector projects as well as advisory services to governments and businesses. Currently, the shareholders of ICD are the IDB, 53 Islamic countries and 5 public financial institutions. ICD is rated ‘AA/ FQ ’ by Fitch, ‘Aa3/P-1’ by Moody’s, and ‘A+ by Standard & Poor’s. Our clients can be any entity working in the private sector, but we can also provide advisory services to governments and public entities.
ICD’s mandate, to serve the private sector of member countries, is carried out through the provision of a variety of products offered to our clients:

• ICD finances private sector entities and greenfield or expansion projects directly through equity participation, the purchase of assignable bonds and term financing. ICD also extends short-term finance to cover working capital and/or raw materials requirements of private sector entities through Murabaha or Purchase and Lease-Back. • ICD can also play a role in mobilising resources for financing a project through co-financing or syndication. • ICD strives to nurture and empower identified channel partners, by setting up or aiding existing development banks in driving development and growth in the Islamic world. This vertically leverages two key instruments in order to extend financial aid: institutional equities and lines of finance.

ICD provide also advisory services to governments, public entities and private entities of member countries with an aim to create the ideal environment to facilitate private sector investment and to assist companies in unlocking their potential.

Advisory services include project finance advisory, raising funds through the issuance of sukuk, and encouraging the development of the business environment for SMEs. • In the last couple of years, ICD has comforted its presence in the member countries with its advisory services, which complements its products through advising clients in issuing Sukuk and establishing Islamic financial windows and Institutions.

The role of the ICD team ICD’s business focus is the development of innovative, high-quality products and services; employee performance plays an integral role in achieving our business goals, and we realise that all steps of ICD’s products from conception to marketing are essential components. Employee performance in these areas is critical to our business success.
Due to that, ICD invests in each and every employee, who, in turn, contribute to its success. We work in an inclusive environment that embraces change, new ideas, respect for the individual and equal opportunity to succeed.

Plans for 2017 and beyond ICD will focus more on the development of what we call ‘Islamic Finance Channels’, designed to reach out and spread Islamic financial products far more widely, with the objective of having a greater developmental impact in its member countries. This will be achieved substantially through setting up Islamic Banks, Investment and Ijarah Companies, Takaful and Re Takaful companies in our member countries. ICD is pioneering many aspects of Islamic finance and sees its role as being a powerful driver for economic change. • Capture the growing demand for Islamic products;

• Create opportunity for growth and diversification; • Create opportunity to attract incremental capital to support future expected growth; • Create opportunity to attract strategic expertise from established Islamic financial institutions; • Create opportunity to attract Islamic investors looking to diversify geographically their portfolios; • Provide opportunity to generate capital gains/ value enhancements for the parent financial institution shareholders and; • Plan to extend finance to Infrastructure and PPP projects.

Industry based challenges on the horizon Industry challenges vary by country and by intensity, but in general, most jurisdictions are facing problems due to a number of fairly similar factors. For example, just to name a few, the lack of skilled human capital and well-developed capital markets, the absence of financial integration both regionally and internationally, the poor capitalisation of Islamic financial institutions, the shortage of liquidity and cash management tools and the poor public awareness of Islamic finance products are all factors impeding Islamic finance growth. Seeing that ICD is a multilateral developmental financial institution, some of these challenges are inadvertently ours as well.

The lack of financial intermediation facilities is what distinguishes poor countries from its richer counterparts in our opinion. To this end, ICD is enhancing economic development by providing a variety of Islamic financial services and products throughout its member countries. We have several academies in the pipeline designed to enhance knowledge of this fast-growing industry.
The complex regional and international regulatory, economic and political context, and the growing need for scalable interventions to achieve meaningful developmental impact, requires broadbased co-operative efforts to ensure success and sustainability. ICD has been active in reaching out to governments and institutions, and devising new ways for cooperation and collaboration.
Concluding thoughts ICD is working intensively to increase the availability and affordability of Islamic finance products for a wide range of financial institutions in its member countries. Extending Line of Finance (LOF) to financial institutions, providing advisory services and investing in various types of financial institutional equity for the ultimate benefit of local real sector businesses, have proven to be critical tools for ICD in boosting the private sector and combating poverty in its member countries.

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
Ownership Mindset: Cultivating Engagement Through Employee Shareholding
News
01/07/2024Ownership Mindset: Cultivating Engagement Through Employee Shareholding

In today’s competitive landscape, fostering a culture of engagement among employees is paramount for the success and sustainability of any business. Employee engagement goes beyond mere satisfaction; it’s about creating a sense of belonging, purpos

Read Full PostRead - Eye Icon
How to Decide Whether an MSP is Right for Your Business
Innovation
11/01/2023How to Decide Whether an MSP is Right for Your Business

You might have heard the term "MSP" used in conversation, or seen it in the news and wondered what it's all about. In the below article, we'll discuss what a managed service provider (MSP) is, how they can help your business and the steps you should consider t

Read Full PostRead - Eye Icon
Navigating Neobanks: What Every College Student Should Know
News
19/02/2024Navigating Neobanks: What Every College Student Should Know

Discover how neobanks offer college students a convenient, secure way to manage finances. Learn to choose the right neobank for your needs and integrate it into student life with acquisition-international.com.

Read Full PostRead - Eye Icon
How Much Are the UK’s Natural Resources Worth?
Finance
23/03/2015How Much Are the UK’s Natural Resources Worth?

The value of the UK's lakes, reservoirs, marshes, bogs, canals and rivers has risen by more than a quarter in five years according to the first ever analysis of freshwater ecosystems from the Office for National Statistics (ONS).

Read Full PostRead - Eye Icon
How the Not-For-Profit Sector Can Embrace a Digital-First Mindset
Corporate Social Responsibility
27/06/2024How the Not-For-Profit Sector Can Embrace a Digital-First Mindset

As the not-for-profit sector stands at a pivotal juncture, the necessity of adopting a digital-first mindset cannot be overstated.

Read Full PostRead - Eye Icon
Extracting Value from Sustainability Requirements
Corporate Social Responsibility
01/04/2016Extracting Value from Sustainability Requirements

Don’t gamble on waiting for regulation to require you to run a sustainable business. Start differentiating your business now.

Read Full PostRead - Eye Icon
Committed to Care
Legal
23/07/2019Committed to Care

Templars Law is a full service law firm with extensive knowledge regarding how to handle the legal needs of clients in Nigeria’s peculiar business environment.

Read Full PostRead - Eye Icon
React Best Practices 2023: What Every Developer Must Do
News
23/06/2023React Best Practices 2023: What Every Developer Must Do

A well-liked JS library for creating user interfaces is React. Developers must keep current on the most recent best practices to build effective and maintainable code as technology continues to advance.

Read Full PostRead - Eye Icon
Navigating the Future of Domains: Key Trends and Innovations Expected in 2024
News
12/07/2024Navigating the Future of Domains: Key Trends and Innovations Expected in 2024

Now that we’re deep into 2024, the situation with web addresses is changing quickly. The future of domains will be influenced by different technological progressions and shifts in digital trends. Keeping up with these changes is very important for busine



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow