FCI and the ITFC sign agreement to create the Islamic Factoring Chapter

Monday 17 June 2019 10:21 CET | News

International Islamic Trade Finance Corporation and FCI signed a MoU to create an Islamic Factoring Chapter within the FCI network.

Chaired by a representative from ITFC, the chapter will include thought leaders from the region, to increase financing opportunities for Small and Medium Enterprises (SMEs) via Islamic Factoring. The chapter will support the growth of SMEs in their domestic and international trade under Islamic factoring rules promulgated by FCI.

ITFC joined FCI recently as an associate member with the aim to promote Islamic Factoring within the Chain. The Chapter is a result of ITFC’s contribution to the development of the Supplementary Agreement on Islamic Factoring along with Noor Bank and Tawreeq Holding, which was approved in June 2018.

The Chapter will promote Factoring as a parallel trade finance instrument, to enable businesses in the Organization of Islamic Cooperation (OIC) Member Countries to trade competitively and support the participation of SMEs as exporters in supply chains. It will introduce Factoring to Islamic banks and non-bank financial institutions (NBFIs) and develop their understanding of pursuing Factoring as a line of business to actively promote trade between OIC member countries and beyond.

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Keywords: International Islamic Trade Finance Corporation, FCI, trade finance, United Arab Emirates, Islamic Factoring Chaper, factoring, FCI Network, MENA
Countries: World

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