Saudi-based Islamic Development Bank plans to set up a $3 billion trade finance corporation to boost trade among Muslim countries, the bank's president said on May 29.
Ahmad Mohamed Ali told a news conference that the bank, whose 56 members include some of the world's poorest countries, would also set up a fund to fight poverty, but did not say how big it would be.
In 2002 the bank launched a $2 billion fund for development projects in Africa over five years, which Ali said was separate from the new fund.
The bank aims to boost intra-Islamic trade to 20 percent of the member states' total trade within 10 years, up from 13.5 percent currently, Ali said.
Ali said the subscribed capital of the corporation was $500 million of which $450 million is already subscribed.
The bank plan to increase its capital by $2 billion over the next five years.
The proposal to set up the trade finance corporation and raise the bank's capital must be approved at the bank's annual meeting this week.
Ali said the corporation, to be based in Jeddah in Saudi Arabia, would be launched in September.
IDB operates according to Islamic law, generating profits through trade and investment.
The bank, the financial arm of the Organisation of the Islamic Conference, was set up in 1975 to help boost trade between Islamic states.
It also extends financial and technical assistance to Islamic groups in non-Muslim states.
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