Launch of the Second Phase of the Aid for Trade Initiative for Arab States (AfTIAS 2.0) Program

 Jeddah, Kingdom of Saudi Arabia: The International Islamic Trade Finance Corporation (ITFC) announced the launch of the second phase of the Aid for Trade Initiative for Arab States (AfTIAS 2.0) Program at the Headquarters of the Islamic Development Bank (IsDB) in Jeddah, Kingdom of Saudi Arabia.

The main objective of AfTIAS 2.0, which will be implemented over five years, is to improve the environment for international trade in the Arab region, create job opportunities, and contribute to sustainable development in the region. The program also aims to remove certain restrictions on access to foreign markets for the supply of goods and services and to enhance the inclusiveness of trade for all population groups, the youth, and women in particular, who have suffered the economic consequences of the COVID pandemic.

The launch ceremony saw the signing of grant agreements to support the program within the Islamic Republic of Mauritania and the Arab Organization for Agricultural Development. Financial support was provided of one million dollars for each.

His Excellency Professor Ibrahim Al-Dukhairi, Director of the Arab Organization for Agricultural Development, signed on behalf of the organization. His Excellency Mr. Mohamed El Amine Ould Dahabi signed on behalf of the Islamic Republic of Mauritania. At the same time, AfTIAS 2.0 was represented by His Excellency Engineer Hani Salem Sonbol, the CEO and the Chairman of the Board of the program.

His Excellency Sonbol expressed the Islamic Development Bank Group's pride in the support the program has received from the leadership of various Arab countries. This support endorsed the decision made during the fourth session of the Arab Economic Summit held in Beirut in January 2019, where the International Islamic Trade Finance Corporation called for the preparation and launch of the AfTIAS program, in cooperation with the Leagues of the Arab States and its members.

His Excellency Sonbol also expressed his sincere thanks and appreciation to His Excellency the Secretary-General of the League of Arab States, Mr. Ahmed Aboul Gheit, for the personal support he provided to the Islamic Development Bank Group to activate this program and the contribution to its successful launch. He also expressed his gratitude to the donors that have responded to the call of the Arabic summit and provided the financial support for the AfTIAS 2.0 program. Those donors are the Islamic Republic of Mauritania, the Arab Organization for Agricultural Development, the Kingdom of Saudi Arabia, the Arab Republic of Egypt, the People's Democratic Republic of Algeria, the Trade Development Fund, the Islamic Development Bank and the International Foundation Islamic Trade Finance.

Through the Aid for Trade Initiative for Arab States (AfTIAS 2.0) program, Arab countries aim to adopt projects to help achieve goals around those pillars:

• Trade development and competitiveness: Address issues related to eliminating nontariff barriers, promoting regional trade, encouraging institutional innovation, and increasing technical business readiness in the region, as well as supporting trade finance
• Supporting Inclusiveness: Focus on the lowest income groups of societies, empowering women and increasing youth participation in trade
• Regional Investment: Preparing documents related to bankable trade infrastructure
• SouthSouth Cooperation (Experience Exchange): To support and strengthen the capacities of government agencies, non-governmental organizations, chambers of commerce, among others
• Research and Inquiry: Support NGOs and provide the necessary information required to inform decisions supporting the program

AfTIAS 2.0 will also provide a platform that contributes to economic recovery plans to address the effects of the COVID-19 pandemic on trade in the Arab region, with a focus on unemployment issues, new trade barriers, difficulties in engaging in global value chains, scarcity of investment financing and digitization of trade.

For his part, His Excellency Dr. Muhammad Suleiman Al-Jasser, President of the Islamic Development Bank Group, said during a speech: "The Islamic Development Bank Group views the AfTIAS 2.0 program with great optimism and hope, especially after amending the program to take into account the needs of Arab countries in the face of the Corona pandemic and recovery from its effects. "

Eng. Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation and Chairman of the Board of Directors of the AfTIAS 2.0 program, pointed out the importance of the initiative, saying: "Our meeting today is the culmination of more than two years of preparation, starting with the design of the AfTIAS 2.0 program and its unanimous approval by all parties. He added, "As you know, foreign trade represents the main engine for economic growth, promoting development and attracting investment, and is a great vehicle for supporting and developing relations between countries. Therefore, we must embrace the second phase of the Fatwa Program to promote joint Arab action and unify Arab economic visions and interests so that we are better prepared potential shocks from global changes. I renew my invitation to our donor partners from inside and outside the Arab region to join this important program to ensure a better life for the peoples of our Arab region."

For his part, His Excellency Dr. Kamal Hassan Ali, Assistant Secretary-General for Economic Affairs of the League of Arab States, on behalf of His Excellency the Secretary-General of the League of Arab States, said: “The AfTIAS 2.0 comes in line with the main objective of the League of Arab States, which is to raise economic integration among Arab countries and improve income levels. Reducing poverty and unemployment, and making Arab economies more resilient to economic turmoil.”

His Excellency added, "The second edition of this program provides a new platform and a practical strategy to unlock the potential and prepare the enormous potential and resources that the region possesses and works to address the challenges imposed on us by the pandemic."

It is noteworthy that the International Islamic Trade Finance Corporation (ITFC) supervised the execution of the first phase of the AfTIAS program between 2013 and 2018, with the aim of supporting trade in the Arab region, which suffers from a significant weakness compared to other regional groupings in the world. During the first phase of this program, 28 projects were approved for the benefit of 19 Arab countries, in various fields in the foreign trade sector.

In early 2019, the Islamic Development Bank Group responded to the request of His Excellency the Secretary-General of the League of Arab States to activate the decision of the Arab Economic Summit held in Beirut in 2019, which called on the institution to prepare and launch the second phase of the AfTIAS Program, in cooperation with the League of Arab States and its member states. Based on this mandate, between 2019 and 2020, the Foundation prepared and approved the AfTIAS 2.0, with the aim of creating an environment conducive to international trade in the Arab region to make it more inclusive and effective to contribute to creating job opportunities and achieving sustainable development.

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