Riyadh, Kingdom of Saudi Arabia, 29 April 2024 – In a major step forward to consolidate their development cooperation, the Republic of Türkiye and the Islamic Development Bank (IsDB) Group have launched a new Country Engagement Framework (CEF) under the theme of: “Supporting Resilient, Inclusive and Sustainable Development in Türkiye”
The launching took place on 29 April 2024 in Riyadh, Kingdom of Saudi Arabia, between, IsDB President and Group Chairman, H.E. Dr. Muhammad Al Jasser, and H.E. Dr. Mehmet Şimşek, Minister of Treasury and Finance and IsDB Governor for Türkiye, on the sidelines of the ongoing 2024 IsDB Group Annual Meetings and Golden Jubilee celebrating the 50th establishment anniversary of the Bank.
At the ceremony, H.E. Minister Mehmet Şimşek, stated: “Today, as a significant milestone in our historic relations with our strategic partner IsDB, we are pleased with the launch of the new Country Engagement Framework for 2024-2026.
The main objective of CEF is to support Türkiye in attaining resilient, inclusive and sustainable development.
CEF is a clear display of IsDB’s belief as a Group in Türkiye’s economy.
I would like to thank the Management and the Regional Hub Türkiye staff for their cooperation in preparing CEF.”
IsDB Group Chairman, H.E. Dr. Al Jasser, meanwhile, reiterated: “This cooperation agreement follows our Realigned Strategy (2023–2025) that aims to boost recovery, tackle poverty and build resilience and drive green economic growth. IsDB Group is pleased to state that this CEF is designed to support Türkiye in its efforts towards sustainable, inclusive, and private-sector-led growth.”
The CEF is a three-year plan (2024-2026) that fully aligns with IsDB Group’s mission and realigned strategy that enables impactful solutions in line with Türkiye’s 12th Development Plan (2024-2028) and Medium-Term Program (MTP, 2024–2026) corresponding with the UN sustainable development goals (SDGs).
The CEF aims to support the Government in achieving its development targets by addressing some of the critical bottlenecks under current and emerging economic and financial challenges. The financing envelope for the IsDB Group's CEF (2024-2026) is tentatively set at US$6.3 billion. It comprises IsDB's public-sector and public-private partnership (PPP) funding of US$2 billion, ITFC (the International Islamic Trade Finance Corporation) financing of US$900 million, ICD (the Islamic Corporation for the Development of the Private Sector) financing of US$300 million, and ICIEC (the Islamic Corporation for the Insurance of Investment and Export Credit), IsDB Group’s investment insurance arm, coverage of US$3.1 billion.
The IsDB Group-Türkiye CEF is based on two strategic pillars: (i) Resilient and Sustainable Transition (ii) Productivity Enhancement, Competitiveness, and Inclusive Growth, and has cross-cutting pillars of Digital Transformation; Islamic finance; Regional Economic Cooperation and Integration; Capacity Development; and South–South cooperation.
The CEF will be reviewed periodically and adjusted with mutual agreement between IsDB Group and Türkiye based on the selection of proposed projects, financing instruments, and co-financing opportunities with development partners.
Türkiye is a founding member of the IsDB which hosts a Regional Hub with two offices in Ankara and Istanbul. In the past 5 decades, the Bank has provided nearly US$13 billion in financing to the country in more than 545 development projects in various sectors including education; health; clean and high-speed transport; infrastructure and industries; Islamic banking and finance; international trade; green energy production; energy efficiency; as well as investment and export insurance.