JEDDAH: The Indian government has signed a memorandum of understanding with the 56-member Islamic Development Bank (IDB) for a possible $100 million line of credit to facilitate exports to IDB’s member countries.

The pact was inked between the IDB’s private sector arm, the Islamic Corporation for the Development of the Private Sector (ICD) and the Export-Import Bank of India (EXIM Bank), a specialized financial institution, wholly owned by the government of India to finance and facilitate foreign trade.

Typically, the recipients of EXIM Bank’s commercial lines of credit act as intermediaries and lend to overseas buyers for the import of Indian goods and services.

Under the agreement, cooperation will also be achieved through the exchange of information on trade-related matters and the identification of business opportunities for Indian companies to pursue in ICD’s member countries.

The agreement was signed by Khaled Al-Aboodi, CEO of the ICD, and Tarun Sharma, regional head of EXIM Bank.

Prominent among those who were present at the signing ceremony at IDB’s headquarters in Jeddah on Monday were IDB Vice President Sayed Aqa, Indian Ambassador Ahmad Javed, Consul General B.S. Mubarak and Maulana Azad National Urdu University (MANUU) Chancellor Zafar Sareshwala.

During the signing ceremony, Al-Aboodi said: “Moving forward, we are very excited to find common ground and work with EXIM Bank. We acknowledge that India, being the seventh largest economy in the world, has a lot to offer and its high-quality exports of goods and services can drive the next wave of growth. I believe ICD’s member countries can offer vibrant business prospects for India’s exporters.”

India is not a member country of the IDB but it has a lot to offer to member countries, Al-Aboodi said.

“We have had extensive discussions in India with the president of EXIM Bank about our intention to sign such an agreement,” he said.

“I have been to India about three or four times, and I met with Indian companies that have good technology that can sell very well in our member countries. I would like to praise the role that EXIM Bank has played in the expansion of Indian businesses beyond the country’s borders,” he added.

“We were very impressed by India’s remarkable progress in telemedicine and teleeducation,” said Al-Aboodi.

“There are many things that can be beneficial to our member countries. They too need these technological solutions that India has used so effectively. Our member countries would like to benefit from them. We are excited it will open good collaboration with India and Indian businesses.”

Sharma said that EXIM Bank since its inception “has been both a catalyst and a key player in the promotion of cross-border trade and investment.”

He added: “We remain committed to support Indian exporters to enter new markets in their bid to expand and are convinced that our cooperation with the ICD will serve that very purpose and will be mutually beneficial for both parties.”