IslamicFinance.de

ICBC Financial Leasing signed a landmark collaboration agreement with the Islamic Corporation for the Development of the Private Sector (ICD). 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.

The Islamic Corporation for the Development of the Private Sector (ICD), the IDB's private sector arm, will cooperate with ICBC Financial Leasing, a wholly owned subsidiary of ICBC, China's biggest lender by assets. China's population of Muslims is estimated at over 20 million but there is very little if any Islamic finance activity inside the country, and it is not clear whether the industry will develop the legal and regulatory backing to develop there. However, some Chinese companies see Islamic finance as a way to expand their trade and investment in fast-growing Muslim majority markets such as the Gulf and southeast Asia, and to access pools of capital there.