Organisation of Islamic Cooperation
The Collective Voice of The Muslim World
Date: 23/08/2010
Jeddah, Saudi Arabia, 20 August 2010 Bismillahi Arrahmani Arrahim Honorable Sheikh Saleh Kamel, President of Islamic Chamber of Commerce and Industry, Distinguished Delegates, Ladies and Gentlemen, Assalamu Aleikum Wa Rahamatullahi Wa Barakatuh It is for me a matter of distinct pleasure to be afforded the opportunity to deliver the keynote address at this First Annual Conference of the Business Owners Union being held under the aegis of the Islamic Chamber of Commerce and Industry. It is equally gratifying that this maiden Conference of business-owners is convening in the city of Jeddah, a foremost business hub of the Islamic world during the blessed month of Ramadan. Allow me on this blessed occasion to extend to you and to all your peers across the Muslim world my heartfelt congratulations and best wishes along with my prayers to Allah Almighty that this month may be a month of bliss, serenity and mercy, particularly under the current trying circumstances endured by our brothers in Pakistan. I wish to launch a fresh appeal from this platform to the Islamic Ummah at large and to its business people in particular, to reach out generously to their brethren in Pakistan. Let me start my intervention by congratulating the Islamic Chamber of Commerce on its increasing activities and varied initiatives, a particular mention being due here for my brother Sheikh Salah Kamel. It is also fortunate that your Conference is being held at a time when the OIC is engaging in a mid-term review of its Ten-year Programme of Action adopted by the Third Extraordinary Islamic Summit at Makkah Al-Mukarramah in December 2005. This re-appraisal of the extent of the implementation of the OIC’s blueprint is aimed at ensuring that the far-reaching programmes, projects and priorities enunciated five years ago is in accord with changing international phenomena and recent challenges, particularly the global financial, food and energy crises. The rationale behind this is to ensure that we attain the main objective of a rapid socio-economic and political transformation in the 57 member-countries of the OIC. To facilitate a comprehensive partnership for the implementation of the Ten Year Programme of Action, the role of the Private Sector was adequately underscored. In this regard, the existing working collaboration and partnership between the OIC and the Islamic business community has ever since assumed greater significance. This keynote address will, therefore, dwell on the various activities on the current economic agenda of the OIC, with particular focus on its evolving partnership with the Private Sector and the comprehensive implementation of the OIC economic agenda. Mr. Chairman Distinguished Delegates The major clusters of activities on the OIC economic agenda are the promotion of intra-OIC trade and wealth creation; poverty alleviation and capacity- building; as well as investment promotion and infrastructure development. In addressing the need for enhanced south-south cooperation, emphasis has been duly placed on increasing the performance of the national economies of the respective member-states of the OIC. Hence, we are pleased to note the positive outcome of these undertakings that have led to an increase in intra-Islamic trade from 271.45 to 551 billion dollars between the years 2005 and 2008, (from 14.5% in 2004 to 16.60% in 2009, our target being set at 20% for the year 2015). The series of activities under the Executive Programme for Enhancement of intra-OIC Trade have, no doubt, received active participation of the Islamic Chambers of Commerce and Industry. The Workshop on Export Processing of Coffee held in Kampala, Uganda, in October 2009 takes front position among the series of programmes on capacity building for the Private sector in OIC Member States. The key components of this programme are trade promotion and financing, and the development of strategic commodities. All these activities have largely benefitted from high-level funding and strategic policy coordination by the various OIC institutions, such as the Islamic Development Bank (IDB), the Islamic Centre for the Development of Trade (ICDT), International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Development of the Private Sector (ICD), and the Islamic Corporation for Insurance of Investments and Export Credits (ICIEC). The quantum of these interventions in the trade sector amounts to US$ 4.7 billion in 2009 and includes a host of support for the capacity-building activities involving the Small and Medium Scale Enterprises (SMEs) in OIC member-states. Mr. Chairman Distinguished Delegates The OIC philosophy on the development of strategic commodities stems from the belief that sustainable ways must be created to foster economic growth and development within OIC countries, while at the same time addressing the spate of unemployment and poverty among the poor and vulnerable segments of the OIC populations. In this regard, the Cotton Action Programme spanning from 2007-2011; and the series of actions on the development of a programme on food security and agricultural development represent decisive actions to improve productivity in OIC member-states. In the same vein, the promotion of trade, through encouraging the convening of business forums, trade fairs and specialized trade exhibitions, and buyers-sellers meetings, is aimed at promoting the role of the Private Sector as the major stimulant for economic growth and development in OIC countries. ICCI’s collaboration had a great beneficial impact on these activities. Furthermore, the interventions of the OIC and its various organs have been very noticeable in the domain of providing financial resources in support of industrial capacity building, value addition and human development. The total value of IDB’s approvals and releases under the two major poverty alleviation funds since their inception has been US$ 2.438 billion. These funds, namely: Islamic Solidarity Fund for Development (ISFD) and the Special Fund for the Development of Africa (SPDA), have been specially established under the Ten Year Programme of Action for the purpose of improving the welfare and livelihood of the vulnerable groups and rural communities in OIC countries. They are also meant for the promotion of pro-poor activities in such areas as health, education, housing and sanitation; food security and agricultural development; and Owing to the traditional funding constraints in implementing the various cooperation projects, efforts have been expanded to reach out to the various national and international stakeholders. Accordingly, the role of the Private Sector in this regard would be mutually rewarding. On-going strategies are aimed at encouraging national institutions as well as the Private Sector establishments in the Islamic world to partner with the OIC in these funds mobilisation efforts. It is in this regard that I wish to salute the on-going partnership and counterpart funding arrangements between the Islamic Development Bank and each of the Food and Agricultural Organisation (FAO) and International Fund for Agricultural Development (IFAD) respectively. A similar approach is developing between the OIC and the national development funding institutions. I am, therefore, positive that the Business Owners Union would consider adopting such an approach for its investment decisions in OIC countries. Mr. Chairman Distinguished Delegates The proposal for expanded business relations among OIC countries proceeds from the widely acknowledged fact that returns on investment in the emerging economies of OIC countries are relatively high. This is evident in the recorded spectacular growth in the developing countries, most of which are OIC countries, in the aftermath of the last global crisis. Although, OIC countries do have a combined GDP of US$6.4 trillion in 2007, which represents 7.5% of world output, the availability of huge natural and human resources of the Islamic world can be harnessed to increase both its aggregate contribution to the world economy as well as intra-OIC trade. This positive profile is buoyed by the fact that OIC countries account for 40% of world’s export of raw materials and two thirds of the world’s proven oil reserves. Equally impressive is the fact that 100 multinational companies operate in OIC countries, with a total asset value of US$200 billion. The inherent strategy in developing local capacities is to stimulate economic growth and provide the appropriate environment for exchange of goods of services and enhanced welfare for the majority of the local populations. To this end, the role of small and large business enterprises remains very crucial. The new Business Owners Union of the ICCI is, therefore, well placed to mobilize the required Mr. Chairman Distinguished Delegates As you embark on the formation of this Union of Businessmen, permit me to once again urge this audience to give due consideration to the need to develop a wider membership that will truly represent the entire business community of the Muslim world. This can be achieved if the Union and ICCI identify and participate in the various activities of the Organisation of the Islamic Conference. In addition to the profitability of joint venture activities in OIC countries, closer public-private partnership would create the required synergies for rewarding economic activities. The General Secretariat will continue to give its utmost support to both the ICCI and its affiliated institutions in order to achieve this end. Closely related to this issue of private-public partnership is the issue of good corporate governance, which is complementary to our various actions to foster sustainable economic development. Considering the fact that apparent lack of transparency in public and private sectors in developing countries has increased the cost of doing business in our countries, the need for the Private Sector to support on-going national measures at harmonizing standards for our goods and services cannot be over-emphasized. Statistics have shown that about 10% of the GDP is lost to over-invoicing of contracts, exchange of sub-standard goods and other sharp practices. It is in this regard that I salute the inauguration, a few days ago, of the Standards and Metrology Institute for Islamic Countries (SMIIC) in Ankara, Turkey. The harmonization of standards would, in addition to fostering exchange of goods and services among our countries, contribute to transfer of technology, quality products and competitiveness in our member countries. In conclusion I wish to renew my heartfelt congratulations to you on the convening of this First Annual Conference of the Business Owners Union, and to also appeal to you once again to ensure that our business people do not forget in this present conference that is being held in this auspicious month of Ramadan, the hardships faced by our brothers in Pakistan. May Allah guide your steps for the benefit of the Ummah’s prosperity. With my best wishes to you all. Wasalam alaekun, warahmatullahi wabarakatuhu.
