Developing 8 Countries Organization

D-8 Looks Forward to Stronger Ties

D-8 Secretariat — Tue, 10 Nov 2009 07:03:09 +0000

The overlap of global economic recovery and new trends in “sub-globalization” has found its latest confirmation in this month’s summit of the Group of Eight Islamic Developing Countries, or D-8, writes Kaveh L Afrasiabi, PhD.

D-8 calls for boosting the contribution of D8 members through Roadmap, which was endorsed by 2008 D-8 summit of head of states

The group was established to address the “insufficient” position of the member states in the world economy as well as their exclusion from key global economic decision-making, according to the group’s first communique in July 1997.

The D-8 comprises Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. Its “D-8 road map” aims to encourage greater economic cooperation between member states and to assist in mobilizing resources from governmental and private sectors in implementing D-8 projects, such as an initiative to address food security in member countries.

The road map, which was endorsed at last year’s D-8 summit of leaders, calls for boosting the contribution of D8 members from 5% of total global trade (that is, US$1.2 trillion) to 15-20% by 2018. This is a rather ambitious goal, given that it hinges on the group’s ability to reach an agreement on a preferential trade agreement (PTA).

“When the PTA comes in force, we should see greater intra-trade among D-8 members,” Malaysia’s D-8 commissioner, Zailol Abedin Omar, told an expert meeting of the D-8 in Kuala Lampur in late October. But, given the myriad problems facing a PTA among the D-8, such as conflict with other bilateral and multilateral commitments, disparate economies, this may prove a long and frustrating wait, as it has been for another regional group, the Economic Cooperation Organization (ECO).

The ECO, which includes three D-8 members - Iran, Pakistan and Turkey - has been trying in vain to formulate a similar PTA among its 10 member states since the early 1990s.

But, after focusing “on organizational work” during the first decade of its existence, to paraphrase D-8 secretary general, Dip Alam, the stage is set for greater and more meaningful cooperation among the D-8 nations, comprising some 950 million people, or 15% of the world’s population, with a growing 400 million labor force. The group is organically connected to two larger groupings, the Organization of Islamic Conference (OIC) and the Non-Aligned Movement (NAM), currently chaired by Egypt, a country recently hailed by the World Bank for its economic reforms.

In addition to promoting multilateral trade and economic cooperation, the importance of the D-8 lies in its ability to foster bilateral and trilateral cooperation, which is why countries such as Turkey and Pakistan, the two nations with most trade with other D-8 economies, are enhancing their ties, reflected in a recent speech of Turkish Prime Minister Recep Tayyip Erdogan, in Pakistan’s parliament, outlining the various areas, in trade, energy and others, where Turkish-Pakistani relations are on the upswing.

Considered as a “gateway to Europe”, to quote an Iranian official, Mohsen Rezaee, visiting Ankara recently, Turkey is playing a prominent role in fostering “intra-Islamic” cooperation by, among other measures, increasing investment in such Arab countries as Egypt, aiming to increase the current figure of about $500 million to $2 billion Turkish investment in Egypt within two years.

Clearly, with the impasse for Turkey’s inclusion into the European Union continuing, Ankara is determined to maximize the economic and strategic benefit of playing the “Islamic cooperation” card, even if it means de-emphasizing ties to Israel, in light of Ankara’s recent last-minute decision to replace Israel with Syria in a joint military exercise.

With respect to Iran, Erdogan’s high-profile recent visit to that country, followed immediately by a trip to Washington, has enhanced the impression of his interlocutor role between the United States and Iran. Turkey and Iran have ushered in a new era of economic cooperation, with the two hoping to increase the volume of their trade substantially within the next few years, in light of Iran’s status as Turkey’s second supplier of gas after Russia.

Also, priding itself in its successful private-sector development, Turkey, along with Malaysia, is poised to play a leading role in promoting D-8 private-sector cooperation, through joint ventures and the like.

For Iran, on the other hand, soliciting the D-8’s political and diplomatic support at this critical hour in the Iran nuclear standoff is highly important, all the more reason why Foreign Minister Manouchehr Mottaki, attending the D-8 summit of foreign ministers this week, framed the nuclear dispute in terms of Iran versus “the West”.

Already, Erdogan’s solid support for “Iran’s completely peaceful nuclear program” has set the stage for a more forceful position on this matter on the part of the D-8, thus thrusting the D-8 more into the international limelight.

Having set up a permanent secretariat last year, the D-8 is no longer a transient group seeking to justify the rationale for its existence, particularly since the current global economic crisis has convinced many in the developing nations that new and more creative efforts at global “sub-groupism” are called for.

Initially envisioned as a Third World counterweight to the Group of Eight leading industrialized countries (now expanded to the Group of 20), the more the D-8 establishes itself, the more developing nations will be inclined to apply for membership.

Yet, some member states are weary of any premature expansion that could turn it “into another ECO”, in light of the ECO’s rapid expansion in the early 1990s from three to 10 member states, a prime reason for its present sub-optimal performance, according to many experts. It would be better to stay as a compact trans-regional group providing a forum for strategic dialogue among some key developing nations.

It’s a long road, but one that dovetails nicely with the NAM’s strategic “South-to-South” trade, which has gained new attractiveness as a result of the current global recession.

If successful, the D-8 may set an example for similar sub-groups traversing the continents.

SOURCE: Asia Times Online

*) Kaveh L Afrasiabi, PhD, is the author of After Khomeini: New Directions in Iran’s Foreign Policy (Westview Press) . For his Wikipedia entry, click here. His latest book, Reading In Iran Foreign Policy After September 11 (BookSurge Publishing , October 23, 2008) is now available.

D-8 To Focus On Various Areas To Progress Further

D-8 Secretariat — Mon, 02 Nov 2009 11:42:15 +0000

The D8 Council of Ministers who began their one-day meeting this morning will, among others, consider the reports of the D8

The 12th Session of The Group of Eight Developing Islamic Countries (D-8) ended here today, with member countries agreeing to work on launching feasible projects, enhance trade and create a charter for the grouping and embark on a young diplomat exchange programme, as reported by Malaysian News Agency, BERNAMA.

In a joint press conference, Foreign Minister Datuk Seri Anifah Aman, who chaired the one-day meeting, said the ministers had a fruitful meeting and they were very serious in achieving D-8’s objectives.

“We are pleased with the progress achieved by the group, especially since revitalisation efforts undertaken have shown very positive results…we had indepth discussions…the sole purpose of giving benefits to the people of the D-8 countries,” he said.

Anifah said they agreed to focus on efforts to launch feasible projects to be undertaken, not only by the respective governments but also the private sectors.

He said they also agreed to focus on prioritised areas of collaboration such as trade, agriculture and Islamic finance.

“And, among other things that we discussed, are the implementation of the Action Plan, and the form of annual programme of work to ensure that the D-8 is kept on the right track,” he said.

Anifah said, there was also a suggestion to create a D-8 Charter and new visions for the grouping, and this would be discussed at a meeting in Istanbul in January, next year.

“We feel that what we have done so far, is not sufficient and we have to put in more effort and therefore, we need to firstly, have a Charter,” he said.

The D-8 foreign ministers meeting discussed various issues including food security and a roadmap for economic and social cooperation

Anifah said, they agreed that the early ratification of the three D-8 agreements — Preferential Trade Agreement (PTA), Agreement on Customs Cooperation and Agreement on Simplification of Visa for D8 Businessmen — were necessary instrument for successful and beneficial economic cooperation among member countries.

Anifah said, member countries also agreed on the exchange of young diplomats, where each country would be sending two diplomats, and where Egypt would be the first country to host the programme.

“I think this is a very good suggestion…to develop understanding and further cooperation among the D-8 countries. Our young diplomats also should get to know each other better, in furtherance to our efforts in all cooperation,” he said, adding that they agreed the programme should start early next year.

Anifah said focus would also be on enhancing intra-trade among D-8 members, from five per cent of the total global trade to 15-20 per cent by 2018. Total global trade among D-8 nations stood at US$1.2 trillion last year.

He said it was important to ensure the success of the D-8 Roadmap for economic cooperation (2008-2018).

The Roadmap which was endorsed during the Sixth D-8 Summit here last year, is aimed at encouraging greater economic cooperation among member states and to assist in mobilising resources from governmental and private sectors in implementing D-8 projects.

“Among D-8 countries, we have about 900 million population combined…you can imagine the potential markets, the demands that we have…so, we have to make it possible to smoothen the process so that we can achieve the objectives together,” he said.

Meanwhile, D-8 Secretary-General Dipo Alam said that Iran had pledged Euro 15 million for a joint-investment of projects.

He said that the priority list of areas of cooperation for D-8 member countries covered trade, agriculture and food security, industrial cooperation and Small and Medium Enterprises (SMEs), transportation, and energy and minerals.

D-8 Set Off the 27th Session of the Commission Meeting in Kuala Lumpur, Malaysia

D-8 Secretariat — Sat, 31 Oct 2009 08:16:42 +0000

The 27th Session of the Group of Eight Developing Countries (D-8) Commission deliberated on various issues and matters concerning the grouping, among them private sector participation and economic cooperation in Kuala Lumpur, Malaysia in 30-31 October 2009

Speaking to Bernama at the end of the two-day closed session, the D-8 Commissioner of Malaysia Zainol Abidin Omar said that other matters discussed were the presentation of the Report of the D-8 Secretariat by the grouping’s Secretary General Dipo Alam and consideration and adoption of the calender of events for 2009/2010 and adoption of reports.

Zainol Abidin said the organisation could be considered as quite new, about 12-years only and as such the first few years were devoted to areas such as organisational matters.

He said under Malaysia’s chairmanship since last year, efforts had been put to find ways to promote economic cooperation and enhance the participation of the private sector in D-8.

“At the moment we do not have any mechanism where the private sector will be involved,” he said.

In this context Zainol Abidin said that the D-8 was trying to identify suitable and implementable projects that would attract private sector participation.

Zainol Abidin who chaired the meeting said that also discussed were the activities for member countries, consideration of the offer lists under the D-8 Preferential Trade Agreement (PTA) and the ratification status of the PTA as well as Visa Agreement and Customs Cooperation Agreement.

The PTA was signed in Bali in 2005 and when it comes into force, the D-8 would see greater intra-trade among the members.

Tomorrow, discussion would focus on several other matters, such as on the draft D-8 charter and consideration of the priority list of areas of cooperation.

The Commission is the executive organ of the D-8.

D8 was established on June 15, 1997, in Istanbul and members comprise Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

Malaysia took over the chairmanship of D-8 last year. Its member countries have a combined population of about 900 million and are rich in economic resources.

The grouping aims to be the mechanism for cooperation in the economic sector through sharing of expertise in order to improve the position of member countries in the global economy.

Indonesia OKs PetroAlgae protein co-product as animal feed and for importation

D-8 Secretariat — Tue, 27 Oct 2009 18:46:18 +0000

Indonesia has approved PetroAlgae protein for importation, and used as a raw material in animal feed

In Indonesia, the national government has approved PetroAlgae protein for importation, and use as a raw material in animal feed in Indonesia, after the Ministry of Agriculture completed testing. According to a statement by PetroAlgae, “Licensees of the PetroAlgae production system will be expected to follow the Guidance and Procedures for the Registration of Animal Feed in Indonesia.”

The protein is a co-product of PetroAlgae’s core bio-crude (renewable fuel feedstock) production system, using a variety of microcrops but currently commercializing a production system based on lemna. The announcement clears the way not only for PetroAlgae operations in Indonesia, but in neighboring countries which would utilize Indonesia as a secondary market for the protein co-product.

D-8 has successfully held the First Meeting of D-8 Working Group on Animal Feed (WGAF) in Surabaya, Indonesia, on 7-8 October 2009. The Meeting was aimed to follow up animal feed initiative as agreed at the D-8 Ministerial Meeting on Food Security held in February 2009 in Kuala Lumpur. The Ministerial Meeting appointed Indonesia and Malaysia as prime movers of the D-8 initiatives on Animal Feed.

D-8 experts in animal feed sectors exerted utmost effort in resolving issues of common interest in technology sharing and trade facilitation in response to the increasing world demand on Animal Feed and to support local agriculture activities in D-8 countries.

The Working Group also emphasized the main objective of enhancing the cooperation between the public and private sectors of the D-8 member countries in animal feed, including R & D, exchange of information and boosting animal feed production.

Bangladesh’s July Balance of Payments Surplus Reaches $694 mln

D-8 Secretariat — Mon, 26 Oct 2009 08:30:51 +0000

D-8 Organization has developed various plan to further improve remittance sector of the D-8 Countries.

Boosted by a surge in remittances, Bangladesh’s overall balance of payments surplus reached 694 million U.S. dollars in July, the first month of the current 2009-10 fiscal year, the central bank data showed Monday last week.

The overall balance of payments (BoP) surplus of the South Asian country was 217 million U.S. dollars during the same period of the previous fiscal year 2008-09 (July 2007 - June 2008), according to the statistics of the Bangladesh Bank (BB). For robust growth in remittances, the BB data showed, the current account surplus surged to 609 million U.S. dollars in July compared to 264 million U.S. dollars of the same period a year ago.

It showed flow of net foreign direct investment, which stood at71 million U.S. dollars in July against 100 million U.S. dollars of the corresponding period of previous fiscal, also contributed to keep current account balance remain healthy. But the central bank data showed the financial account balance stood at a deficit of 32 million U.S. dollars in July against the deficit of 221 million U.S. dollars in the same period in last fiscal year.

The BB data showed the country’s remittance inflow grew 8 percent to 886.39 million U.S. dollars in July, which also helped offset the impact of the trade shortfall. According to the central bank data, the country’s overall trade deficit stood at 113 million U.S. dollars in July period from 320 million U.S. dollars of the corresponding period of the previous fiscal.

The country’s import payment was 1,555 million U.S. dollars in July this fiscal year 2009-10 (July 2009-June 2010) while earnings from exports stood at 1,442 million U.S. dollars during the same period. Following the larger surplus in overall balance of payments, however, the central bank’s foreign exchange reserves for the first time increased to around 8 billion U.S. dollars at the end of July this year.

D-8 Organization has developed various plan to further improve remittance sector of the D-8 Countries. The organization plans to set up a D-8 Working Group of Migrant Workers, Remittances, and Microfinance to help coordinate policies among the countries. Meanwhile, during the working visit to several international organisation in Geneva and Rome in 2008, D-8 Secretary General has formally invited a number of potential participants from IFAD, and OFID to share ideas on how to optimize this growing sector for the benefit of the D-8 countries.

Turkish Prime Minister to address Pakistani Parliament: Intensifying Cooperation between D-8 Member States

D-8 Secretariat — Fri, 23 Oct 2009 09:46:50 +0000

Turkish Prime Minister Tayyip Erdogan, right, and his Pakistani counterpart Yousuf Reza Gilani, left, are seen during a press conference, following their meeting in Ankara, Turkey, Tuesday, Oct. 28, 2008. (AP Photo)

Turkish Prime Minister Recep Tayyip Erdoğan will address members of Pakistan’s Parliament during an official visit to the country, scheduled to take place on Sunday and Monday, Pakistani media have reported.

On Monday, two houses of the Pakistani Parliament, the National Assembly and the Senate, will hold a joint session for the address by Erdoğan. Following the visiting prime minister’s address, Pakistani Prime Minister Yousuf Raza Gilani will also deliver a speech at parliament in which he is expected to underline the importance attached by his government to bilateral relations with Turkey. State governors, members of the constitutional court, top commanders and representatives from diplomatic missions in Pakistan are expected to listen to Erdoğan’s speech at parliament, the Anatolia news agency reported.

During the visit, Erdoğan and Gilani are expected to sign a series of bilateral agreements in the fields of defense, commerce, mining, agriculture, education and energy, Anatolia also said. Earlier this week, the office of Pakistani President Asif Ali Zardari had already announced that the president will decorate Erdoğan with the presidential medal of merit “for being a supporter and defender of Pakistan in the international arena in addition to making contributions to improving political and economic relations between Pakistan and Turkey.”

Turkey is among the biggest exporter country among the D-8 Member states. With high export growth and wider job opportunities each year, this country serve best model for investment, and splendid export performance. Pakistan herself is a very good market for the Turkish industry, such as construction and allied sectors. However, there is a need to properly explore and tap it.

D-8 Secretary General, Dipo Alam, commenting on the scheduled visit said that he deeply wish that this event can be a cementing bridge to intensify the good relations between the two countries, which are also member of D-8, especially in trade and economic fields, as lined out in D-8 summits and other related programs of the D-8 Organization. “We hope to see more concrete results can be worked on for a more intense cooperation among our member states,” he said in his office on Tuesday, citing the example of the Joint Venture signing between Iran and Indonesia in petro-chemical sector last month.

Alam expresses his ope that Turkey can continously play its major role in speeding up the Preferential Trade Agreement so that they can be implemented as soon as possible without delay.

Turkish Treasury Injects TL 1 billion (approx. 680m USD) to Boost Small Companies

D-8 Secretariat — Mon, 19 Oct 2009 11:57:34 +0000

Turkish Small and medium-sized enterprises (SMEs) suffering from financing difficulties due to the global financial crisis will be able to ameliorate their situation with a new TL 1 billion contribution from the Treasury.

A protocol between the Turkish Treasury and the Loan Insurance Fund (KGF) governing the transfer of TL 1 billion was signed last week at the TOBB University of Economics and Technology with the attendance of Economy Minister Ali Babacan, Industry and Trade Minister Nihat Ergün, Turkish Union of Chambers and Commodity Exchanges Chairman Rifat Hisarcıklıoğlu and Treasury Undersecretary İbrahim Halil Çanakçı.

KGF executive board president Faik Yavuz, explaining that they had found the opportunity to extend over TL 11 billion in loans to SMEs, said the fund had achieved capital equivalent to that of a medium-sized bank. Drawing attention to the importance of a TL 1 billion fund transfer from the Treasury, Yavuz said in an exclusive interview with Turkish leading newspaper, Today’s Zaman: “The Treasury’s TL 1 billion fund transfer has been the greatest support lent to SMEs with a single stroke of a pen. This measure of support for SMEs, the first of such magnitude, is very important to us.”

The global financial crisis has had a negative albeit indirect effect on SMEs’ access to loans, Yavuz said, noting that the KGF had increased their capital from TL 60 million to TL 240 million by boosting the number of partners in the fund to be able to create TL 1.5 billion in loans. “A year ago, before the crisis, we offered our SMEs loans with limited options, and only TL 500,000 security. … With the protocol that we are going to sign today [Monday] and the Treasury’s TL 1 billion in resources, our total loan creation ability exceeds TL 11 billion. This will create great opportunities for our SMEs, for the employment problem and for our farmers,” Yavuz said.

A protocol between the Treasury and the KGF governing the transfer of TL 1 billion was signed yesterday at the Turkish Union of Chambers and Commodity Exchanges (TOBB) University of Economics and Technology with the attendance of Economy Minister Ali Babacan. It gives the opportunity for SMEs to more easily emerge from the financial crisis following a period of narrowed bank loan capacities and resultant difficulties obtaining financing for SMEs.

The protocol signing ceremony was hosted by TOBB President Rıfat Hisarcıkoğlu and was also attended by Minister of Industry and Commerce Nihat Ergün and a number of Treasury officials.

Meetings lasted six months

The project to ensure easy loan access to SMEs as part of the government’s package to minimize crisis damage emerged at the end of a six-month string of meetings. Recalling that the ruling Justice and Development Party (AK Party) had committed to an expansion of the loan insurance program in its election platform, Yavuz told Today’s Zaman: “When the global crisis came about, it became even more difficult for SMEs to obtain already-not-easy-to-achieve financing, and they began to have troubles with securities. We met with the administration and reminded them of their election promises. We said we could solve the guarantee issues through the KGF. But we said that in order for this to happen, we needed funding.”

Meetings over the issue continued for six or seven months, Yavuz said. “When Prime Minister [Recep Tayyip] Erdoğan gave his approval to the maturity plan, a law was prepared for the appropriation of TL 1 billion in funds, which passed in Parliament in June. Since the passing of the bill, studies had been ongoing to find sources for the fund. During these meetings the government also requested that we strengthen our capital. At the time the KGF had capital of TL 60 million. … We increased our number of partners and upped our capital by four times to TL 240 million,” he explained.

Turkey to regain rapid growth rate

In the year ahead Turkey will start growing again thanks to its dynamic economy, International Monetary Fund (IMF) First Deputy Managing Director John Lipsky said to Turkish media.

Speaking to the Anatolia news agency, Lipsky noted that like other developing countries, Turkey was also negatively affected by the global financial crisis. The Turkish economy shrank due to the adverse impact of the crisis, and the country’s exports have contracted due to a decline in external demand, he stated, asserting that the negative effects of the crisis would continue to influence the Turkish economy for the rest of this year.

In line with the recovery from the global financial crisis that is being seen throughout the world, Lipsky said Turkey will also enter a phase of recovery from the crisis and will subsequently start to rapidly grow again in the year ahead thanks to its dynamic economy. Lipsky noted that like all other developing countries, Turkey will also have to deal with the unemployment issue. He emphasized the importance of short and long-term economic measures in overcoming this problem. Turkey should first assure its economic growth in order to reduce its high levels of unemployment, Lipsky underlined.

Lipsky noted that economic growth in Turkey could be achieved in the short run with the help of an effective financial sector, sound economic policies, low levels of inflation and sustainable public finance. In the long run, he added, an educated workforce which will ensure competitiveness in the international arena is a must for economic growth.

According to the IMF’s latest “World Economic Outlook,” released in early October, Turkey’s economy is expected to grow by 3.7 percent in 2010 after the global recession caused the country’s economy to contract by an estimated 6.5 percent this year. The inflation rate in the country is expected to stand at 6.2 percent this year before increasing to 6.8 percent in 2010. The report estimated that Turkey’s current account deficit to gross domestic product (GDP) ratio would increase from 1.9 percent this year to 3.7 percent in 2010. The reason behind this increase is reported to be due to an anticipated increase in average crude oil prices in line with the recovery from the global financial crisis. Furthermore, Turkey’s quota in the IMF is expected to increase to more than 1 percent. Analysts also note that the Turkish economy will be the fastest growing in Europe in 2010 in the event that the country manages to raise its foreign trade volume and reach its goal to grow by about 5 percent in the year 2010.

D-8 to Hold the 27th Session of the D-8 Commission and the 12th Session of the D-8 Council of Ministers Meetings in Kuala Lumpur, Malaysia, 30 October - 2 November 2009

D-8 Secretariat — Fri, 16 Oct 2009 13:18:47 +0000

Online Registration for the 27th Session of the D-8 Commission Meeting and the 12th Session of the D-8 Council of Ministers Meeting

In order to support the upcoming 27th Session of the D-8 Commission Meeting and the 12th Session of the D-8 Council of Ministers Meeting, the Ministry of Foreign Affairs, Malaysia has already launched the 27th Session of the D-8 Commission Meeting and the 12th Session of the D-8 Council of Ministers Meeting Portal in the Official Website of the Ministry of Foreign Affairs.

In this regard, the portal enables delegates and related party to register via online. The Portal is of importance in order for the main secretariat to retrieve all relevant information required. The dateline for the online registration is on the 18th. October 2009. Further details can be found at: http://www.kln.gov.my/

Please click here to register yourself online!

D-8 Gears Up to Welcome the Revival of Micro-insurance and Islamic-Bond Market

D-8 Secretariat — Sat, 10 Oct 2009 15:19:41 +0000

2nd D-8 Meeting on Financial Infrastructure Development was held in Cairo, Egypt on 4-5 October 2009

According to the Wall Street Journal media, Indonesia, Pakistan and South Korea Could Net $2 Billion With Shariah-Compliant Offers Planned for Next Year. Along the same line, in the recent meeting in Cairo, D-8 set to provide platform of cooperation for D-8 countries to increase cooperation in financial infrastructure development related fields, particularly insurance, micro-insurance, Takaful, and micro-Takaful in the area of Islamic finance.

Indonesia, Pakistan and South Korea are lining up to sell Islamic bonds offshore in separate offerings that will add diversity to a niche area of finance and spur the revival of a market that had a severe setback during the global credit crisis.

The deals, likely to be initiated next year, could net the three governments a total of $2 billion and would reflect a growing recognition of sukuk as an alternative source of funds for governments in Asia. Investors appear hungry for investments that comply with Shariah, or Islamic law.

“There is a shortage of Shariah-compliant instruments for a number of funds,” said Lum Chung Kuan, head of fixed income research at CIMB Group in Kuala Lumpur. “Definitely this will be good news for them.”

The planned return of these Asian governments to the sukuk market comes amid signs that the global credit crisis has dissipated and that the global economy is on its way to recovery.

Instead of interest, sukuk make payouts derived from underlying assets typically sold to a separate vehicle that is the issuer of the paper.

Global issuance of sukuk gained much ground in the third quarter, with the value of offerings rising 82% from a year earlier to $6.2 billion, data from Zawya.com’s Sukuk Monitor show. The Sukuk Monitor is a comprehensive database tracking major sukuk issued globally that is run by Zawya, a Dubai-based business-information company.

The outlook appears robust as demand for capital rises in step with the rebound in the global economy. Increased stability in prices of physical assets, such as land and buildings, should also make it less difficult to value underlying sukuk assets, paving the way for more deals.

Indonesia’s planned Islamic bond would follow its first global sukuk sale in April, which raised $650 million and reopened the international sukuk market after it was shut by last year’s crisis.

Jakarta plans to sell up to $1 billion of global sukuk by the second quarter of 2010, according to people familiar with the situation.

Dahlan Siamat, head of Islamic finance at Indonesia’s Finance Ministry, said last week that the Parliament has approved a plan to expand to 25 trillion rupiah ($2.6 billion) a pool of assets that may be used to back global and domestic sales of the Islamic bonds this year and next. This is about double the previous size of the asset pool.

Pakistan, the only other Asian nation to have issued offshore Islamic bonds, has just $600 million outstanding from its 2005 sale. It is looking to raise $500 million in Islamic bonds next year.

The Karachi government aims to begin the process of hiring the arrangers for the bond sale by the first week of November and offer the issue by February, a finance ministry official said late last month.

D-8 Secretary General, Dipo Alam, gave a speech during the 2nd D-8 Meeting on Financial Infrastructure Development in Cairo, Egypt, on 4-5 October 2009.

South Korea is looking to sell what would be its first ever sukuk as it continues to refine its tax laws to facilitate issuance. It wants to attract capital from Islamic markets to diversify its funding sources and reduce its refinancing risks.

The Korean government plans a road show in Malaysia and the United Arab Emirates in November.

Since the start of this year, $8.1 billion of Islamic bonds out of the Asian-Pacific region have priced, exceeding the $6.4 billion volume in the same period last year, according to data provider Dealogic.

Last week, D-8 held the 2nd Meeting on Financial Infrastructure Development in Cairo, Egypt. The two-days event was focused on the theme of “Strategic Prospective View of Micro-Insurance in D-8 Countries.” Among the outcomes of the meeting was to establish the D-8 Working Group on Insurance and Takaful (D-8 WGIT), led by Egypt as the prime mover; to enhance cooperation between D-8 WGIT and other financial insurance institutions in order to improve D-8 Insurance Core Principles (ICPs) with short and long term aim to facilitate cooperation in developing insurance and Takaful in D-8 countries; and to propose project proposal in insurance and Takaful related fields i.e. remittance (migrant workers), agriculture, health, life, property and SME’s to international financial organization.

Malaysia is considering hosting the next meeting on Insurance and Takaful in 2010.

UNCTAD, Japanese Bank Develop Plan for Nigeria’s Economic Vision

D-8 Secretariat — Mon, 05 Oct 2009 15:32:54 +0000

UNCTAD and Japan developed plan to assist Nigeria to attract more Foreign Direct Investments (FDI) and achieve its 2020 vision

The United Nations Conference on Trade and Development (UNCTAD) and the Japan Bank for International Cooperation (JBIC) have developed a 15-point action plan to assist Nigeria attract more Foreign Direct Investments (FDI) and thereby achieve its 20:2020 vision.

The initiative, called as the “blue book action plan”, recommends steps for developing the effectiveness of the Nigerian Investment Promotion Council (NIPC) and for setting up a programme to encourage foreign investors to make greater use of Nigerian suppliers.

The Nigerian Blue-Book action plan will, among other things, establish NIPC within the Presidency; establish Nigeria’s One-Stop Investment Centre to negotiate protocols of cooperation with participating agencies; establish a pilot multi-facility economic zone; install a computerized investor tracking system for the One-Stop Investment centre; streamline the tax system; and establish a Presidential Initiative to spread best practice in the transfer of land rights.

The action plan will also target investors in the agro-allied sector; create a scarce skills list; create a client’s charter for NIPC and other institutions dealing with investors; establish the Federal Competition Commission; adopt the proposed new Labour bills; sensitise parliamentarians on investment issues; sign double taxation treaties within the ECOWAS area; create a pilot business linkages programme; and formalise Federal-State roles in investment promotion and facilitation.

The blue book was produced at the request of the Federal Government to support its plan of becoming one of the largest 20 economies in the world by the year 2020, through the National Economic Empowerment and Development Strategy (NEEDS) and the seven-point agenda.

Senior Adviser at UNCTAD, Ambassador Kwabena Baah-Duodu, said at the presentation of the book to the media in Abuja yesterday that the promotion of investment at the domestic and foreign levels of the Nigerian economic strata is important to Nigeria’s objective of creating a vibrant and diversified private sector.

According to him, the plan complements and supports existing government programmes, as relevant stakeholders were consulted during the research and drafting stages, with the recommendations already endorsed by the government.

He said FDI can bring the much needed capital, technology, management techniques, knowledge of foreign markets and new organisational systems.

“In whichever size or form, from small and innovative software development firms to world-class manufacturing, it can add extra vigour to Nigeria’s private sector, stimulate local suppliers and help nurture a future generation of Nigerian entrepreneurs”, he said.

Ian Richards of UNCTAD said the new blue book is the sixth produced by the two organisations for the African region.

He said previous books were developed for Tanzania, Kenya, Uganda, Ghana and Zambia.