A delegation of the International Islamic Trade Finance Corporation (ITFC) led by CEO Hani Salem Sonbol visits Uzbekistan.

During the visit, the delegation attended the meeting of the Arab Coordination Group in Tashkent. Several meetings were held with representatives of ministries and agencies, international organizations, and banks of Uzbekistan.

ITFC and the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan, signed a framework agreement on cooperation for 2024-2026 for $600 million. According to the document, several events are planned to focus on the development of trade and business, the import of necessary goods and products, the expansion of financing for state-owned enterprises with or without a state guarantee, and the provision of credit lines to local banks and other financial institutions to support the needs of private sector clients.

The delegation also visited the Ministry of Economy and Finance, where prospects for cooperation were discussed.

The Ministry of Economy and Finance of the Republic of Uzbekistan and ITFC signed an agreement on Islamic trade finance Murabaha for $100 within the framework of the project “Supporting Food Security and Agriculture”. 

These funds will be used to optimize food products through the purchase of locally produced agricultural products during the harvest season, their storage in warehouses, and periodic release/sale as necessary to ensure an uninterrupted supply of wheat, essential food products for a population of Uzbekistan during the year. Using reserves acquired through this mechanism, the government stabilized rising wheat prices by supplying goods to the local market, thereby ensuring price stability and affordability for the population.

Regarding the signings, ITFC CEO Hani Salem Sonbol said: “The agreements signed today strengthen our collaboration with Uzbekistan and testify to our commitment to socio-economic development in Uzbekistan and the Central Asia region at large. We believe the projects and programs that benefit from the approved financing will positively contribute to national economic growth. We are pleased to be covering key sectors such as food security and the private sector which align with our focus on contributing to achieving the Sustainable Development Goals especially SDG 2 (Zero Hunger) and SDG 8 (Decent Work & Economic Growth).

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to improving people's socioeconomic conditions worldwide.

Commencing operations in January 2008, ITFC has provided $75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to compete in the global market successfully.

ITFC began its activities in Uzbekistan in 2018 with a pilot financing line for one bank. In 2019, ITFC signed a Framework Agreement worth $500 million for four years.

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Nasiba Ziyodullayeva, UzA