International Islamic Trade Finance Corporation Recognized for Innovative Financing Facility for Tèrkiye's Post-Earthquake Recovery

Strategic Insights -

The International Islamic Trade Finance Corporation (ITFC) has been awarded the GTR Best Deals of 2024 for its innovative US$150 million Murabaha financing facility supporting Tèrkiye's post-earthquake economic recovery. This landmark Shariah-compliant financing facility was the first Islamic trade finance facility designed for post-disaster recovery, responding to the devastating earthquakes in February 2023 that resulted in an estimated US$100 billion in damages and disrupted over 220,000 businesses. The facility delivered working capital support and laid the foundation for sustainable economic revival in key sectors including food security, agriculture, and trade.

Key Takeaways:

  • The ITFC's US$150 million Murabaha financing facility was the first Islamic trade finance facility designed for post-disaster recovery in response to the February 2023 earthquakes in Tèrkiye, which resulted in an estimated US$100 billion in damages and disrupted over 220,000 businesses.
  • The facility delivered working capital support and laid the foundation for sustainable economic revival in key sectors including food security, agriculture, and trade.
  • The project has accelerated the adoption of Islamic trade finance solutions in Tèrkiye's public sector, with TSKB and TKYB utilizing the opportunity to develop new Shariah-compliant frameworks with strategic impact across other sectors like renewable energy, climate resilience, employment, and inclusive development.
  • The US$150 million Murabaha-based agreement between ITFC and TSKB marks the first cooperation between the two institutions, supporting trade-driven recovery and resilience in the earthquake-impacted areas.
  • The award reinforces ITFC's leadership in Islamic trade finance solutions and its contribution to achieving SDG 8 (Decent Work & Economic Growth) and SDG 9 (Industry, Innovation & Infrastructure).

Statistics:

  • Date of the earthquakes: February 2023
  • Estimated damages: US$100 billion
  • Number of businesses disrupted: over 220,000
  • Amount of financing facility: US$150 million
  • Type of financing facility: Murabaha (Shariah-compliant)

Sources:

  • International Islamic Trade Finance Corporation (ITFC) - www.ITFC-idb.org
  • Global Trade Review (GTR) - Best Deals 2024
  • APO Group - Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC)