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Private sector’s support is key for Islamic cooperation

Sharjah Economic Declaration outlines critical benefits of trade

Delegates at the 16th Private Sector Forum for the OIC Member Countries held in Sharjah last week. — Supplied photo

The Sharjah Economic Declaration suggests the increased role of the private sector of the Islamic world to further enhance their economic and commercial cooperation with the objective of boosting intra-Islamic trade to 20 per cent by 2015.

The declaration was issued on Saturday as a result of several working sessions highlighting the benefits of a Trade Preferential System for the promotion of intra-Islamic trade at the 16th OIC Private Sector Forum, organised by the Islamic Chamber of Commerce, Industry and Agriculture in collaboration with the Sharjah Chamber of Commerce and Industry.

The forum was led by prominent representatives from chambers of commerce, trade organisations and financial institutions from across the Organisation of Islamic Cooperation, or OIC.

It recommended the member chambers to encourage the private sector to give due consideration to the utilisation of the various OIC Multilateral Trade Agreements, especially the general agreement for economic and technical cooperation.

Sharjah Economic Declaration

The declaration called upon OIC member states who have not yet signed and ratified tje OIC-TPS to do so, and those who have, to fulfill the requirements and thereafter create awareness of and encourage their private sectors to benefit from them and entrust ICCIA to formulate a specific training programs that are directed to identified sectors.

It underlined the importance of Islamic banking as a mode for trade financing and reiterated the need to introduce the system in countries which currently do not have this mode, and call upon the IDB Group and other relevant banks and financial institutions to give their necessary support.

It says given the geographical diversity of the OIC member states, emphasis be given on coordination and linkages at intra-regional level and call upon multilateral agencies such as the International Finance Corporation, to assist in developing the linkages between country and regional based banks.

It welcomes the creation of Al Masfaq in Saudi Arabia as an effective initiative to facilitate procedures and develop various fields of economic activities, through the private sector and calls for the replication of the said mechanism in other Islamic countries.

It also welcomes the Open Data Portal to be set-up by ICCIA and the Jeddah Chamber for all OIC countries including all indicators and statistical information related to products of foreign trade.

It appreciates the kind gesture of the Sharjah Chamber in hosting a permanent Islamic exhibition and calls upon all the relevant stake holders to come forward and collectively contribute to this initiative, and to implement the existing strategy on SMEs, which could develop the sector through nurturing entrepreneurship spirit and provide networking opportunities among SMEs and entrepreneurs in the Islamic World.

It will help organise annual forum for SMEs in the Islamic world to discuss various related issues, such as B2B networking and possibility of specialized banks to provide financial support schemes to SMEs.

It also called upon the ICCIA and other relevant stake holders to conduct regular training programmes focusing on knowledge sharing, adopting of best practices and exchange of technology; and to call upon the private sector to emphasize the need of diversified products and find new markets in the member states.

It would also grant the private sector its natural and pioneering role in development plans and programmes and to provide necessary legislative and institutional support to exploit the potential of this sector as fundamental basis for liberating economic activity in Islamic countries and to develop the performance of the various economic and services sectors.