ICD signs major deal in China

The leasing arm of largest bank in the world signed a landmark collaboration agreement with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB).
The agreement marks the first time that the ICBC Financial Leasing, a wholly owned subsidiary of the Industrial and Commercial Bank of China (ICBC) has worked with an Islamic institution, and represents one of the first strategic collaborations to unite the vast commercial strength of China with the significant liquidity and strong trade potential of the Islamic world.
Combining the reputation, experience and expertise of the ICD with the strength and sophistication of the ICBC Group global banking network, the new collaborative agreement has the potential to channel the power and potential of the Chinese economy to enhance and encourage private sector progress across the Islamic world.
The two entities will work together across multiple lines to develop Islamic capabilities and opportunities and assist economic evolution across ICD member countries: including the provision of financing and banking services such as Ijarah, placement of funds, lines of finance and liquidity management; as well as technical assistance, training and expertise.
The parties also plan to encourage and implement co-financing, club deal and syndication projects for eligible private sector projects.
Khaled Al-Aboodi, CEO of the ICD, said: “China has hitherto been a relatively untapped market for Islamic finance, and offers exceptional potential in terms of its global strength and economic influence.”