Mumbai: For the first time, the Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank Group (IsDB Group) have signed a Memorandum of Understanding (MOU) to establish a framework for strategic cooperation, including actively seeking to co- finance projects in common areas of operations. The overarching theme of the MOU will be “Mobilizing Financing for Infrastructure: Innovation & Collaboration”.
Signed during AIIB’s Third Annual Meeting in Mumbai, the MOU deepens the relationship between the two banks, allowing them to foster collaboration, share information and facilitate knowledge exchanges on development finance, Islamic finance and integrity mechanisms. The MOU will have a strong focus on sustainable infrastructure including development of energy and power, transportation and telecommunications, rural infrastructure water supply and sanitation, environmental protection, urban development and logistics.
“An agreement between our banks is a natural fit because we are both dedicated to development and helping our members promote growth and economic opportunity,” said AIIB President Jin Liqun. “We have complementary skill sets and expertise. We believe working together on joint investments and initiatives will strengthen our capacity to deliver on our respective missions and benefit our members.”
“We are delighted to strengthen our partnership with AIIB,” said IsDB Group President Dr. Bandar M.H. Hajjar. “We have a number of common member countries in Asia and also in Africa and a significant overlap in sectors and financing activities. IsDB Group looks forward to jointly strengthening the effectiveness and sustainability of our banks’ operations and to looking for new ways to stimulate the region’s economic growth together. We strongly believe in the power of innovation, science and technology to stimulate growth and will ensure this is a key area of collaboration for the banks going forward.”
This partnership between the two banks is an example of the importance they both place on partnerships and how they are key to their growth in the future.
The MOU creates opportunities for better communication and working relationship between AIIB and IsDB Group. Among other activities, the banks intend to share knowledge and exchange experiences among employees through joint temporary assignments, secondments and training.