G20 Foundation Publications China 2016 | Page 41

the business environment of member countries, plus project finance advisory, raising funds though the issue of Sukuk, development of Islamic capital markets and encouraging the development of the business environment for SMEs. 4. Asset Management Services ICD supplements its own balance sheet by sponsoring / creating private equity funds as well as other special purpose vehicles in order to provide the IDB Group and other investors with access to projects that provide commercial returns as well as meet the developmental needs of member countries. ICD acts as a fund manager and/or general partner with other fund managers to sponsor and create special purpose vehicles along with third party investors including but not limited to IDB and ICD; other Multilateral Agencies; Sovereign Wealth Funds; Government Funding Vehicles and High Net Worth Individuals. CHINA & ICD With a more inclusive foreign policy, including a renewed stance on the Middle East and Africa, Chinese president Xi Jinping has set the motion for greater China-OIC relations – with the ‘One Belt, One Road’ initiative a central pillar to China’s grand strategy. In light of this development, in March 2016, ICD hosted its inaugural ground breaking event “China-OIC Forum 2016” in Beijing to connect investors and regulators from Asia, Africa and the Gulf with senior decision-makers of the world’s second-largest economy. At the side-lines of the landmark China-OIC Forum 2016 in Beijing, a memorandum of understanding (MoU) was signed between ICD and China-Africa Development Fund (CADFund), a Beijing-based private equity firm focusing on Africa. The MoU envisages enhancing trade and investment opportunities in 19 African countries through co-financing and co- investments, with the aim of promoting inclusive growth and financial inclusion. Research collaboration and capacity- building programs that are tailored and demand-driven will also be conducted to better serve target markets. In addition, efforts will be focused on boosting support for African small-and-medium enterprises (SMEs), widely recognized as an important economic driver and key contributor to sustainable GDP growth. Furthermore, ICD and CNBM International Engineering Co. (CNBM-IE) have signed a MoU to conceptualize, develop and structure a global scheme for the development of social infrastructure projects in ICD’s 53 member countries. Under the scheme, a Public-Private-Partnership (PPP) mode of development called “Design-Finance- Build-Lease-Transfer” (DFBLT) will be utilised in order to meet the funding gap. Under the early stages of the proposed DFBLT scheme, ICD will lead the global marketing and financing-arrangement activities, while CNBM-IE will conduct all Engineering, Procurement and Construction Management (EPCM) activities. It is envisaged that development financial institutions and donor countries including the industry players in the member countries will play a major role in the success of this scheme. Since the 1970s, China has taken pivotal steps to integrate into the world market and its rapid rise from a high-growth emerging economy to a powerful global player has indeed been one of the most extraordinary feats of recent history. Over that period, the country has undergone a shift from a largely agrarian society to an industrial powerhouse, underpinned by economic reforms and the introduction of open- door policies. This process resulted in a rapid advance in output per capita, lifting millions of people out of poverty and establishing a thriving middle class. Currently the world’s second largest economy, China offers a multitude of opportunities in which Islamic finance has a profound role to play.  In light of this context, ICD released its latest report entitled “China: The Time is Now” at the landmark China-OIC Forum 2016. The report entails three sections:  • Section 1: The History of China’s Economic Development: “A Rocky Road from Socialism to Consumerism”  • Section 2: China’s Economic Landscape: “Calibrating China’s Economy”  • Section 3: Islamic Finance in China: “An Impetus to Growth” ■ 41