Line Of Finance
One of the main focus areas for ICD is establishing and developing Shariah Compliant Financial Channels in member countries to promote Islamic finance, support the private sector, and eradicate poverty. Through our Lines of Financing, we provide medium-long term financing facilities to financial institutions (FIs) with the goal of supporting private sector enterprises in our member countries. These Lines of Finance may be extended directly to eligible FIs or channeled through selected intermediary FIs to private sector enterprises. ICD is open to partnering with both Islamic and conventional institutions that meet our criteria.
Our Lines of Financing aim to improve access to medium-long term funding for private sector enterprises and strengthen the balance sheets of beneficiary FIs. However, we do not finance enterprises related to the defense sector, recreation, or non-Shariah compliant activities. We offer a range of products for both Islamic and conventional FIs, and are constantly developing new ones to meet the needs and expectations of our partners and clients. In many cases, we are able to tailor Shariah-compliant facilities (such as Wakala, Murabaha, Commodity Murabaha, or other Shariah-compliant instruments) to meet local regulatory requirements and specific client needs.
By partnering with financial institutions in our member countries and leveraging their local knowledge and networks, we aim to expand our outreach and increase our developmental impact. The projects financed through our Lines of Finance are based on Shariah principles and align with at least the United Nations Sustainable Development Goals (SDGs) 8 & 9.
In summary, the main objectives of our Lines of Financing include:
- Promoting Islamic finance and financial inclusion
- Expanding our outreach and increasing our developmental impact
- Developing partnerships with FIs and benefiting from their networks and market knowledge