Islamic bank signs MoU with Asian Infrastructure Bank

By Jeyhun Aliyev

ANKARA (AA) - The Islamic Development Bank (IsDB) Group and the Asian Infrastructure Investment Bank (AIIB) on Monday signed a memorandum of understanding (MoU) for strategic cooperation during AIIB’s third annual meeting in Mumbai.

The signing of the "Mobilizing Financing for Infrastructure: Innovation and Collaboration" was announced in a Tuesday statement.

Jin Liqun, president of the AIIB, said: “An agreement between our banks is a natural fit because we are both dedicated to development and helping our members promote growth and economic opportunity.”

"We believe working together on joint investments and initiatives will strengthen our capacity to deliver on our respective missions and benefit our members,” he added.

The MoU aimed to deepen relationship between the two banks, as well as encourage collaboration, information sharing and facilitate knowledge exchanges on development finance, Islamic finance and integrity mechanisms.

It is also focuses on sustainable infrastructure including transportation, telecommunications, rural infrastructure water supply, sanitation and environmental protection areas.

Bandar Hajjar, president of the IsDB Group, said: "The IsDB Group looks forward to jointly strengthening the effectiveness and sustainability of our banks’ operations and to looking for new ways to stimulate the region’s economic growth together."

"We strongly believe in the power of innovation, science and technology to stimulate growth and will ensure this is a key area of collaboration for the banks going forward,” Hajjar added.

The banks also intend to share knowledge and exchange experiences among employees through joint temporary assignments and training.

The IsDB, the development arm of the Organization for Islamic Cooperation, was established in 1975 to foster economic development and social progress in member countries. The bank currently has 57 members with its head office in Jeddah, Saudi Arabia.

The AIIB is a multilateral development bank, headquartered in Beijing, with a mission to improve social and economic outcomes in Asia and beyond through sustainable infrastructure investments.