Global Economy Faces Tougher Year in 2023, IMF’s Georgieva Warns

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By Dan Burns

For much of the global economy, 2023 is going to be a tough year as the main engines of global growth – the United States, Europe and China – all experience weakening activity, the head of the International Monetary Fund said on Sunday. The new year is going to be “tougher than the year we leave behind,” IMF Managing Director Kristalina Georgieva said on the CBS Sunday morning news program “Face the Nation.” “Why? Because the three big economies – the U.S., EU and China – are all slowing down simultaneously,” she said.

In October, the IMF cut its outlook for global economic growth in 2023, reflecting the continuing drag from the war in Ukraine as well as inflation pressures and the high interest rates engineered by central banks like the U.S. Federal Reserve aimed at bringing those price pressures to heel.

Since then, China has scrapped its zero-COVID policy and embarked on a chaotic reopening of its economy, though consumers there remain wary as coronavirus cases surge. In his first public comments since the change in policy, President Xi Jinping on Saturday called in a New Year’s address for more effort and unity as China enters a “new phase.” “For the first time in 40 years, China’s growth in 2022 is likely to be at or below global growth,” Georgieva said.

Moreover, a “bushfire” of expected COVID infections there in the months ahead are likely to further hit its economy this year and drag on both regional and global growth, said Georgieva, who traveled to China on IMF business late last month. “I was in China last week, in a bubble in a city where there is zero COVID,” she said. “But that is not going to last once people start traveling.”

“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative,” she said. In October’s forecast, the IMF pegged Chinese gross domestic product growth last year at 3.2% – on par with the fund’s global outlook for 2022. At that time, it also saw annual growth in China accelerating in 2023 to 4.4% while global activity slowed further.

Her comments, however, suggest another cut to both the China and global growth outlooks may be in the offing later this month when the IMF typically unveils updated forecasts during the World Economic Forum in Davos, Switzerland. READ MORE.

“Manafee” Partnership Launched in Saudi Arabia

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“Manafee” Partnership Launched in Saudi Arabia

In the midst of the strenuous efforts to promote the economic and social development of OIC member countries, and under the patronage of the Minister of Commerce and Acting Minister of Media of the Kingdom of Saudi Arabia, H.E. Dr. Majid bin Abdullah Al-Qasabi, a ceremony has been held to launch “Manafee” Partnership between the Islamic Chamber of Commerce, Industry and Agriculture, Makkah and Madina chambers, on Wednesday, the 28th of December 2022, at Makkah Chamber for Exhibitions and Events Center, Kingdom of Saudi Arabia, in the presence of the Presidents and high-level representatives from the member chambers and relevant international institutions and organizations.

As part of ICCIA’s steadfast drive to advance its member states, the tripartite partnership is based on 9 innovative tracks that are intended to accomplish a cultural heritage, and urban leap for Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah. It also strives to focus on strengthening joint cooperation between the Islamic Chamber, Makkah Chamber and Madinah Chamber, through organizing a series of joint events in the areas of investment, industry, halal, Islamic arts and culture, and other topics that contribute to the advancement of the Islamic economy globally. Moreover, one of the main pillars of the partnership is investing in the holy status of Makkah and Madinah to transform them into hubs for business events and effective platforms for Islamic knowledge and creativity.

In this regard, H.E. Mr. Abdullah Saleh Kamel, President of the Islamic Chamber of Commerce, Industry and Agriculture, and Chairman of the Board of Directors of Makkah Chamber, emphasized, during his opening speech at the ceremony, the role of the tripartite partnership “Manafee” in achieving the Saudi Vision 2030, indicating: “The title of the Saudi Vision 2030 is: “Saudi Arabia: The Heart the Arab and Islamic Worlds, the Investment Powerhouse, and the Hub Connecting Three Continents”, and we were inspired by this vision in Manafee Partnership”. Underlining the significance of this role, H.E. Mr. Abdullah Saleh Kamel also pointed out the “Made in Makkah” initiative and “The Permanent Exhibition of the Islamic Countries’ Products and Services”, as part of the initiatives the partnership intends to launch, praising the strenuous efforts of the three partners, supported by H.E. the Minister of Commerce and Acting Minister of Media of the Kingdom of Saudi Arabia, Dr. Majid Abdullah Al-Qasabi, to launch this partnership which contributes significantly to transforming Makkah and Madina into attraction hubs for business events and a platform for Islamic knowledge and creativity. READ MORE.

 

Why Are Non-Muslims Converting To Islamic Finance?

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Islamic finance, also known as sharia-compliant finance, is a financial system that is based on principles of fairness, transparency, and ethical investment. It is an increasingly popular option for people of all faiths who are looking for a financial system that aligns with their values and beliefs. In this blog post, we will explore some of the reasons why non-Muslims are converting to Islamic finance and how it can benefit them.

Why Are Non-Muslims Converting To Islamic Finance?

Fairness and transparency

One of the main principles of Islamic finance is fairness, which means that all parties involved in a financial transaction should be treated equally and fairly. This is achieved through the use of contracts and agreements that are clearly defined and adhere to sharia principles. This transparency can be especially appealing to non-Muslims who may be concerned about the lack of transparency and fairness in traditional financial systems.

Ethical investment

Another key principle of Islamic finance is an ethical investment. This means that investment is not only about maximizing profits, but also about contributing to the greater good and avoiding harm. Islamic finance prohibits investment in industries and activities that are considered harmful or unethical, such as gambling, tobacco, alcohol, and weapons. This can be a major factor for non-Muslims who are looking for a financial system that aligns with their personal values and beliefs.

Sustainable development

Islamic finance also promotes sustainable development and environmental stewardship. This is achieved through the use of sharia-compliant investment instruments that encourage long-term planning and the use of natural resources in a responsible and sustainable manner. This can be particularly appealing to non-Muslims who are concerned about the impact of traditional financial systems on the environment and want to make a positive contribution to the world.

Diversification

For many non-Muslims, converting to Islamic finance can also be a way to diversify their investment portfolio and reduce risk. As Islamic finance is still a relatively new and growing industry, it offers a range of investment opportunities that may not be available in traditional financial systems. This can be an attractive option for those who are looking to diversify their investment portfolio and potentially achieve higher returns.

Community involvement

For some non-Muslims, converting to Islamic finance can also be a way to become more involved in the local or global Muslim community. Many Islamic finance institutions are owned and operated by Muslims, and they often prioritize supporting and investing in the local community. This can be a rewarding aspect of converting to Islamic finance for non-Muslims who are looking for a financial system that is grounded in community values.

In conclusion, there are many reasons why non-Muslims are converting to Islamic finance, including fairness and transparency, ethical investment, sustainable development, diversification, and community involvement. If you are a non-Muslim considering converting to Islamic finance, it is important to do your research and understand the principles and practices of this financial system to ensure that it aligns with your values and goals. READ MORE

Free Trade Zones Attract $46b Investment in Nigeria

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By Jeph Ajobaju
Export processing zones have attracted $46.6 billion investment, Nigeria Export Processing Zones Authority (NEPZA) Managing Director Adesoji Adesugba disclosed at the 30th anniversary of free trade zones scheme. He said Free Trade Zones (FTZs) are meeting their objective of fast-tracking economic growth and industrialisation.  FTZs regulated by NEPZA have attracted over $30 billion investments since the inception in 1992 and Oil and Gas Free Zones have attracted $16.6 billion since 1996, according to Adesugba. He added the zones house 600 enterprises providing 150,000 direct employment and an estimated 400,000 indirect employment.

“To date,” he said, “the zones have attracted over $30 billion investments, which is expected to exponentially increase in the next few years with our sustained incentives and aggressive investment drive across the world. The future is bright for the Free Trade Zone scheme in Nigeria. “And again, we express our profound appreciation to the President Muhammadu Buhari-led administration for the approval given for the establishment of six Special Economic Zones and the earmarking of four international airports as Free Trade Zones in 2021.”

Robust Fiscal Incentives

NEPZA has also established Special Economic Zones Security outfit to secure lives and investments in the zones and Special Economic Zones Training Institute in Kano is expected to bridge knowledge gap in the free zones scheme.

“The authority also established an automated platform to digitise the operations of the scheme for enhanced efficiency and accountability,” Adesugba added, per reporting by Nairametrics.

He said the scheme operates under robust fiscal incentives enunciated in the enabling Act, which enabled NEPZA to checkmate attempts by revenue generating agencies to overreach themselves in the collection of taxes and levies,

Tijjani Kaura, the Managing Director/CEO of Oil and Gas Free Zones Authority, disclosed oil and gas free trade zones have attracted over 200 companies with over $16.6 billion and created more than 200,000 direct and indirect jobs.

“This is with immediate emphasis on the Medium-Term National Development Plan 2021-2025 while providing model development centres for achieving the agenda 2063 of the African Union, in collaboration with other international development partners,’’ Kaura said.

NEPZA disclosed in 2021 there are over 500 licensed FTZs enterprises across the country. Enterprises in the FTZs include oil and gas, manufacturing, steel rolling mills, pharmaceuticals, food processing, car assembling, and industrial parks.

Green Finance for the SDGs: The Potential of Islamic Finance

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By Dr Dalal Aassouli

The financial industry can play a critical role in building a stable and prosperous economy when it is managed with accountability. This requires redirecting investments into economic activities that deliver a good balance between economic, environmental and social objectives in order to promote human well-being and mitigate global challenges such as climate change, biodiversity loss, or inequalities. Many analysts are now taking a closer look at a ‘green economy’, which promotes economic growth while also achieving sustainability objectives.

The 2030 Sustainable Development Goals (SDG) agenda and the Paris Agreement on Climate Change were two major turning points in advancing global action to promote the transition to a green economy and tackle climate change. Their implementation has contributed to the growth of environmental awareness and embedding sustainability in the financial industry, suggesting a paradigm shift in the way financial intermediation is conducted and monetary transactions are structured. In turn, new investment products and financial instruments labelled as green, climate-related or sustainable and responsible were developed. Among them are green bonds and green and Sustainable and Responsible Investment (SRI) sukuk.

Challenges and Opportunities in Implementing the SDGs

The United Nations Development Programme (UNDP) estimates a $2.5 trillion annual gap for achieving the SDGs while the implementation of renewable energy solutions requires an additional net investment of $1.4 trillion, or about $100 billion per year on average between 2016 (when the SDGs were adopted) and 2030 according to the International Renewable Energy Agency (IRENA).

On the other hand, a recent report by the Global Commission on the Economy and Climate highlights that the transition to a low-carbon, sustainable approach to growth could lead to an economic boost of $26 trillion up to 2030 and help create more than 65 million new jobs.

This rising awareness has promoted the development of new asset classes that could be classified under the umbrella of sustainable finance. Activities labelled under this category take into account environmental and social considerations. Other related or sub-categories include climate finance, ethical finance, responsible finance and green finance.

What is Green Finance?

The Organization for Economic Co-operation and Development (OECD) defines green finance as being finance for ‘achieving economic growth while reducing pollution and greenhouse gas emissions, minimizing waste and improving efficiency in the use of natural resources’.

For the past decade, the global green finance market has witnessed a rapid growth, with the development of financial instruments such as green labeled and unlabeled bonds; green loans; green investment funds; green insurance; and recently green sukuk. Although the first green bonds were issued in 2008, the market has significantly developed to mobilize financing for the 17 SDGs with more innovative structures, taxonomies and governing frameworks.

The Infrastructure Development Finance Company (IDFC) estimates green finance at $134 billion. According to Thomson Reuters, in 2019, a total of $185.4 billion in green bonds were issued, which are debt market instruments where the proceeds are allocated to green eligible projects that target climate mitigation and adaptation activities as well as other environmental issues involving energy, water, transport, water, waste, or construction.

Islamic Finance

Considered as an ethical, inclusive and socially responsible finance because it connects the financial sector with the real economy and promotes risk sharing, partnership-style financing and social responsibility, Islamic finance has emerged as an effective tool for financing development worldwide. This explains its increasing significance as an alternative mechanism in infrastructure financing. In an Islamic financial system, transactions must be asset-linked, which increases the financial sector’s stability, and be based on a set of Islamic legal contracts that promote profit and loss sharing. In addition, the principles of social justice, solidarity and mutuality are promoted and investments in sectors that are considered unethical are prohibited.

Islamic finance has the potential to bridge the finance gap required to achieve the SDG agenda and the transition to a green economy. This justifies its identification by participants of the third International Conference on Financing for Development in Addis Ababa in July 2015 as a promising alternative to traditional sources of funding and the recommendation for its utilization to realize the SDGs.

The Islamic financial industry comprises four key segments: Islamic banking, Islamic funds, takaful(Islamic insurance) and the sukuk market. While the four segments can contribute to financing the SDGs, the sukuk segment attracted greater attention recently with the development of green and SRI sukuk. Sukukalso enable the targeting of a wider, global investor base comprising both conventional and Islamic investors.

Sukuk

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) defines sukuk as certificates of equal value representing undivided shares in ownership of tangible assets, usufructs and services or (in the ownership of) the assets of particular projects or special investment activity.

The sukuk market is one of the fastest growing segments in the Islamic financial industry with about 24.2% of the total global Islamic financial assets and new issuances amounting to $93 billionin 2018 according to the Islamic Financial Services Board (IFSB).

Often qualified as Islamic bonds, sukuk represents an innovative instrument for financing green projects. Their asset-backing requirement facilitates their link to the real economy and therefore widens the scope of environmental sectors that can be financed. In addition, sukuk can be structured in various ways using single or hybrid Islamic contracts such as agency, partnership and leasing contracts. This flexibility facilitates financial innovation in addressing specific financing needs.

Green sukuk can contribute to achieving nine of the SDGs. These are Good Health and Wellbeing (SDG3), Quality Education (SDG4), Clean Water and Infrastructure (SDG6), Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Sustainable Cities and Communities (SDG11), Responsible Consumption and Production (SDG12) and Climate Action (SDG13).

We first saw the impact of sukuk in 2017 when the world’s first green sukukwas issued by Malaysian-based Tadau Energy to finance a solar power project in Malaysia. Since then, the market has developed significantly with the amount of green sukuk issuance reaching$5.38 billion at the end of 2019, representing 58 issues by nine issuers, mainly led by corporates in Malaysia and the GCC.

The green sukuk market development was also supported by the implementation of enabling frameworks such as the Malaysian Securities Commission’s SRI Sukuk Framework and the recent Indonesia green bond and green sukuk framework.

Towards Green and Blended Finance

The OECD defines blended finance as the strategic use of development finance for the mobilization of additional finance towards sustainable development in developing countries. This requires reconsidering other sources of financing while leveraging the limited public and development finance funds.

A good example to consider is Islamic social finance. The Islamic social finance sector broadly comprises traditional Islamic institutions such as zakat (almsgiving) and waqf (endowments), as well as Islamic microfinance. These segments usually target the bottom of the pyramid populations, who lack access to basic safety nets such as education, appropriate health systems, food and other basic needs.

Zakat and waqf are at the heart of the Islamic economic system as they promote the principles of social justice, solidarity, brotherhood and mutuality whereas microfinance enables small businesses that usually cannot access traditional financing modes, to access financing for small projects that generate income and therefore reduces their reliance on charity.

Zakat and awqaf institutions have played a significant role in the cultural, socio-economic and religious life of Muslims for centuries. Today, many scholars are calling for the revival of these institutions to address contemporary development challenges including environmental issues. Zakat and waqf could be used in green blended finance transactions to address several SDGs and develop inclusive green solutions for smallholder farmers, rural access to clean energy and cooking solutions, water treatment and sanitation solutions, etc.

In conclusion, the widespread transition to a green economy will ultimately require a sustained focus on continuing the growth of the global green finance market and further development of these key financial instruments as promising alternatives to traditional sources of funding.

Top 5 Challenges for the Global Halal Industry

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The global halal industry, which refers to the production, distribution, and consumption of goods and services that are compliant with Islamic law, is a rapidly growing sector. According to the Global Islamic Economy Report, the halal industry is valued at over $2.3 trillion and is expected to continue expanding in the coming years.

However, despite its growth, the halal industry faces several challenges that must be addressed in order to continue its development. Here are some of the key challenges currently facing the global halal industry:

  1. Lack of standardization and certification: One of the major challenges facing the halal industry is the lack of standardization and certification. Different countries and organizations have different definitions of what constitutes halal, and there is no single internationally recognized certification body for halal products. This can lead to confusion and mistrust among consumers, as well as difficulties for producers trying to access new markets.
  2. Insufficient infrastructure: Another challenge facing the halal industry is the lack of infrastructure to support its growth. Many countries do not have the necessary infrastructure, such as slaughterhouses, processing plants, and distribution networks, to meet the demand for halal products. This can lead to shortages and higher prices for halal products, which can be a barrier to their adoption.
  3. Marketing and branding challenges: The halal industry also faces challenges related to marketing and branding. Many consumers are not familiar with halal products, and there is a lack of awareness and understanding of what constitutes halal. Additionally, the lack of a consistent, cohesive branding strategy makes it difficult for halal products to stand out in the marketplace.
  4. Limited access to financing: Another challenge facing the halal industry is limited access to financing. Many halal businesses, especially small and medium-sized enterprises, struggle to secure financing from traditional sources, such as banks and venture capital firms. This can make it difficult for them to scale up and expand their operations.
  5. Political and regulatory challenges: Finally, the halal industry can be subject to political and regulatory challenges, such as changes in government policies and trade regulations that can affect the availability and affordability of halal products.

In order to address these challenges and continue the growth of the global halal industry, it is important for industry stakeholders to work together to establish clear standards and certification processes, invest in infrastructure, develop effective marketing and branding strategies, provide access to financing, and advocate for supportive policies and regulations.

Islamic Coin wins ESG Crypto at The Middle East Blockchain Awards

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Islamic Coin plans to offer several services, including a wallet and a super app, and will soon be available on exchanges.  Islamic Coin, the native currency of the Haqq ecosystem, plans to offer the larger Muslim community as well as others a Shariah-compliant financial instrument for the digital age.

The Middle East Blockchain Awards, which honored Web 3.0 and Blockchain accomplishments alongside some of the major players in the region, were hosted on November 18 in Abu Dhabi. Because it promotes ethical and sustainable conduct and meets ESG requirements, digital currency won the reward category. Mohammed AlKaff AlHashmi, a co-founder and executive board member, accepted the honor.

Targeting 1.1 billion Muslim web users

The one-of-a-kind configuration of Islamic Coin ensures that 10 percent of each issuance is deposited into the Evergreen Decentralized Autonomous Organization (DAO) for further investment into religious businesses or charity, thereby delivering direct monetary benefit to the global Muslim community and beyond. The team has already engaged in sustainability initiatives and recently presented at the WGGO Youth International Conference in New York, supported by the United Nations.

Islamic Coin fully complies with Shariah laws and capitalizes on a vast international market. By 2024, the value of Islamic finance is expected to reach $3.69 trillion; by 2025, the value of ESG assets is expected to reach $53 trillion.

“We have a digital currency that not only makes social contributions through charity but is also good to society because it uses a proof-of-stake system that requires the purchase of tokens to be part of the network, a process that saves significant amounts of energy,” explained Andrey Kuznetsov, Islamic Coin’s co-founder and chief technology officer.

Islamic Coin aims to reach 1.1 billion Muslim internet users worldwide and supporters of fair and transparent finance. Already, the cryptocurrency has garnered attention from prominent figures in both traditional and Islamic finance and has secured support from royal families in the UAE.

Royals and leading experts lend support

Leading Islamic Coin’s Shariah Board is Sheikh Dr. Nizam Mohammed Saleh Yaquby, who is referred to as “The Gatekeeper” of a $2 trillion market for Islamic financial products. Sheikh Yaquby is a member of the Shariah boards of several major global financial organizations, including HSBC, Lloyds TSB, and Barclays, as well as Citigroup, BNP Paribas, and French bank Credit Agricole.

The Executive Board is composed of influential individuals from both conventional and Islamic finance. One of the important figures in the establishment of Dubai Islamic Bank, the first fully-fledged Islamic Bank in the world, is Hussein Al Meeza, an award-winning banker with over 45 years of experience in the Islamic banking, finance, and insurance sectors.

Khamis Buharoon AI Shamsi, who previously worked for the Central Bank of the UAE as an assistant director in the finance division and an assistant director in the internal audit division, is now a member of the board.

Additionally, Greg Gigliotti, the company’s CEO, chief investment officer, and founding partner, has joined. Gigliotti is a reputable fund manager who has experience working for Goldman Sachs and other multinational companies. Throughout his tenure, he oversaw a portfolio worth more than $16 billion.

Islamic Coin plans to offer several services, including a wallet and a super app. Its product offerings will soon be available on exchanges.

Delegation briefed about immense opportunities in Salalah Free Zone

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Muscat: The existing and potential investment opportunities and the world-class infrastructure that meet the requirements of investors, were conveyed to a delegation on their visit to the Salalah Free Zone and Port.

The media delegation comprising reporters of Arab and foreign news agencies were also acquainted with the transport system, the logistics sector and the available business opportunities in Dhofar Governorate.

The visit comes within the delegation’s visit to the Governorate to promote economic, investment and tourism projects.

During the visit to Salalah Free Zone, the delegation was briefed by Ahmed bin Said Tabook, Director General of Commercial Affairs at Salalah Free Zone.

The location of Salalah Free Zone is close to the ports which help in motivating multi-media communication and ensures smooth movement of goods and creation of opportunities for integration of the value added chains, he said, adding that the location also provides access to the international markets.

He said that the Salalah Free Zone provides several incentives and facilities to investors, including   tax exemption and  freehold projects. The port enjoys sixth place out of 351 ports at the world level in the operations capacity.

The free zone is close to Salalah Airport and international shipping lines qualified as free zone to play a vital role in the supply chain and logistics services sector, he said.

The Salalah Free Zone is spread over an area of approximately 2.6 million sq. metres for the chemicals sector companies, he said, adding that the said area hosts a number of companies in the petrochemicals sector such as OQ Methanol, OQ Liquified Petroleum Gas, Octal and other companies.

The media delegation toured a number of projects at Salalah Free Zone, including Al Jood Food factory, one of the largest factories at Salalah Free Zone,  established in May 2019.

The delegation also visited USG Company’s factory which produces gypsum sheets meant for export to other countries.

On the visit to Salalah Port,  the delegation was briefed by Mohammed bin Aufait Al Masha’ani, CEO for Corporate Affairs at Salalah Port on the logistics services , facilities, projects and investment opportunities the port offers.

Al Masha’ani pointed out the role the Salalah Port plays in international shipping by receiving an increasing number of container vessels.

He also pointed out that the port possesses a general goods/cargo terminal established in 1976.

He said that Salalah Ports Services Company operates in the field of management and its operation is in accordance with a concession agreements signed with the Government of Oman.

The company also manages the Salalah Port in coordination with the management of Salalah Free Zone and other companies operating in the zone.

He said that Salalah Port secured the second place in the container ports performance index (CPPI) in 2021, issued by the World bank and Standard & Poor’s Global Market Intelligence and sixth place in the CPPI for 2020.

IsDB Group announces a USD 10.54-billion package for Food Security Response Program (FSRP) to respond to the global food security crisis in its member countries

IsDB Group announces a USD 10.54-billion package for Food Security Response Program (FSRP) to respond to the global food security crisis in its member countries

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Jeddah, Kingdom of Saudi Arabia, 28 July 2022 – The Islamic Development Bank (IsDB) Group held today an extraordinary joint meeting of the IsDB Board of Executive Directors, the Board of Directors of the Islamic Solidarity Fund for Development (ISFD), and the Board of Directors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), chaired by IsDB President and Group Chairman, H.E. Dr. Muhammad Al Jasser. The joint meeting endorsed a USD 10.54 billion comprehensive Food Security Response Program (FSRP) package that will support member countries in addressing the ongoing food crisis and, most importantly, scale up the Group’s continued efforts to contribute to strengthening its members’ resilience to food security shocks in the future.

As part of the IsDB Group comprehensive package, the IsDB will contribute up to USD 5.7 billion in total financing to member countries, comprising new approvals worth USD 4.0 billion and fast-tracking of disbursements for existing projects worth USD 1.7 billion. In addition, as part of its “One Group-One Goal” approach, the program involves significant and direct contributions by IsDB Group entities as follows: (i) ITFC: USD 4.5 billion in trade financing; (ii) ICD: USD 269 million in private sector development operations; (iii) ISFD: USD 75 million in loans, grants, and capital resources; and (iv) ICIEC: USD 500 million in political and credit insurance coverage. To complement the financial package of the IsDB Group, the Islamic Development Bank Institute (IsDBi) will provide critical data, analytics, and evidence-based support for effective and impactful decision-making.

To jump-start the program, the financing package is expected to provide immediate financing of up to USD 3.2 billion (over the coming 18-month period) for short-term interventions by providing (i) emergency food and agricultural supply and (ii) social protection and livelihood support to the most vulnerable populations.

The primary focus of the program and the bulk of the financing envelope of the remaining USD 7.3 billion, which will span over the next three years, will be on developing innovative medium- and long-term interventions to address structural weaknesses and root causes of food insecurity in the member states. These include low productivity, rural poverty, climate change, and weak resilience of regional and national agricultural and food systems through six (6) key initiatives: (i)  building agricultural resilience to climate change; (ii) food and input value-chains; (iii) smallholders’ productivity and market access; (iv) rural livelihood support; (v) livestock and fisheries development; and (vi) building resilient food supply systems.

The total IsDB Group’s financing support for agriculture and food security currently stands at USD 20.6 billion, comprising 1,538 operations.

Indonesia’s special economic zones attract over 4 billion USD

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Jakarta (VNA) – Special economic zones (SEZs) in Indonesia have attracted a combined investment of 60 trillion rupiah (4 billion USD) following the approval of the Omnibus Act on job creation, an official from the Coordinating Ministry for Economic Affairs has said.

Elen Setiadi, an expert on regulation, law enforcement and economic resilience at the ministry said the act has partially changed the SEZ Law.

According to Setiadi, after the approval of the Omnibus Act on job creation, four new SEZs were established, including Gresik SEZ in East Java province, Lido SEZ in West Java province, Nongsa SEZ and Batam Aero Technic SEZ in Batam city in Riau province.

Currently PT Freeport Indonesia company is developing a metallurgical plant in Gresik SEZ, while MNC Land is looking to develop a tourist attraction in Lido SEZ. A project at SEZ Lido is expected to be completed in September or October.

Setiadi also said that a Hong Kong-based company has set up a data centre worth 7 trillion rupiah at Nongsa SEZ, while Lion Air Group is looking to expand its business at Batam Aero Technic SEZ.

Earlier, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia owns a total of 19 SEZs, of which 15 are active.

In order to promote the development of the SEZs, Indonesia has recently issued a decree which sets a target of attracting over 50 billion USD of investment in the zones in the next decade./.