- JEDDAH: The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), and Kolon Corporation, a diversified company in South Korea, signed a memorandum of understanding (MoU) for jointly establishing Islamic leasing (ijara) companies to support small and medium enterprises (SMEs) in 57-member countries of the Organization of Islamic Cooperation (OIC).
ICD's CEO and General Manager Khaled Al-Aboodi and Kolon's CEO and President Kim Nam-soo signed the MoU recently.
Al-Aboodi said the MoU would enable both ICD and Kolon to operate and offer ijara products and services to SMEs and other eligible customers.
The MoU sets out the establishment of a platform for mutual collaboration on market studies related to the leasing industry in countries where the project is to be initiated.
ICD is a multilateral financial institution that supports economic development in its member countries by providing finance to private sector, units and initiatives, in accordance with the principles of Shariah.
Kolon, meanwhile, focuses on the environment (natural gas, water, and incineration), petroleum chemicals and construction industry and has played a key role in the environmental and energy projects in countries of the Commonwealth of Independent States.
