JEDDAH: The Islamic Corporation for Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank, pledged $50 million funds for the development of small and medium-sized enterprises (SMEs) during a dialogue session with Indonesian private sector in Indonesia recently. Khaled Al-Aboodi, CEO and general manager of ICD, attended the dialogue and shared ICD’s commitment to further develop partnership with the SMEs sector in the country.
“Islamic economic principles have been receiving a positive response from private sectors under current financial circumstances, especially those from non-Islamic countries such as Russia, France and the US. As for Indonesia, the percentage of Islamic banking assets is still small as compared to other markets such as Malaysia and the Middle East,” Al-Aboodi said.
“Our aim is to develop the Islamic finance industry in our member countries, and we are delighted that the Indonesian government has made attempts in creating the necessary infrastructure in this regard. Indonesia is one of the essential markets for ICD and we will continue to expand our presence as opportunities present themselves, owing to the strong local demand and market,” Al-Aboodi added.
Al-Aboodi further said that ICD is conducting studies on financing selected companies in Indonesia, in addition to recent funds allocated to SMEs in Indonesia at $50 million. As part of the dialogue, ICD signed an agreement with Mandala Finance. It offers SME financing in the form of funds and capital asset. “ICD is a key international financial institution and we welcome their role in providing support to the private sector in Indonesia and our partners, Mandala Finance.
