Latest news with #Kingdom of Saudi Arabia
Zawya
23-07-2025
- Business
- Zawya
ITFC reports strong results and sustainability progress in 2024 Annual Development Effectiveness Report
JEDDAH, Kingdom of Saudi Arabia -- The International Islamic Trade Finance Corporation (ITFC) ( a member of the Islamic Development Bank (IsDB) Group, announced the release of its 2024 Annual Development Effectiveness Report (ADER). The ADER serves as an essential reporting and transparency tool, enabling ITFC to measure, communicate, and continually refine its strategies and interventions for achieving sustainable development outcomes. The 2024 report highlights ITFC's expanding role as a driver of sustainable trade, economic resilience, and inclusive growth across its member countries. 'The ADER showcases ITFC's ability to provide innovative, impactful solutions that address the complex needs of our member countries,' said Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC. 'While we celebrate key milestones, we are also assessing our interventions to ensure we continue advancing toward a more inclusive, resilient, and sustainable future.' Key Highlights of 2024 ADER In 2024, ITFC delivered tangible results, demonstrating its focus on resilience and economic inclusion. The key highlights include: Filling Trade Finance Gaps. ITFC allocated US$2.66 billion, 38% of its total portfolio, to LDMCs, supporting inclusive growth. Additionally, US$268 million directly benefited over 380,000 smallholder farmers, enabling the procurement of 840,000 metric tons of local agricultural products. Securing Critical Supply Chains. Disbursements to the energy sector amounted to US$4 billion, bringing reliable electricity to approximately 13.8 million households. Food security interventions provided over 5.6 million metric tons of essential commodities worth US$1.45 billion, benefiting more than 30 million households. Strengthening Private Sector Participation. ITFC financed 312 small and medium enterprises (SMEs) and corporates through partnerships with 23 financial institutions, promoting financial inclusion and economic diversification. Fostering Regional Integration. Intra-OIC trade financing reached US$4.8 billion. Through strategic programs such as the Arab Africa Trade Bridges (AATB) and the Aid for Trade Initiative for Arab States (AfTIAS), ITFC strengthened regional value chains and institutional capacities. Investing in Capacity Development. Technical assistance and training initiatives reached over 3,100 individuals, a 32% increase from the previous year, with nearly 40% women participants. Embedding Sustainability into Core Operations The Corporation adopted its first Environmental and Social (E&S) Policy and launched a Ten-Year E&S Action Plan. A new governance structure was also introduced to guide implementation, laying the foundation for more responsible trade finance operations. Empowering Growth through the SDGs ITFC made significant strides in advancing multiple Sustainable Development Goals through its trade finance and development initiatives. Its efforts have helped reduce poverty (SDG 1), strengthen food security (SDG 2), and expand access to clean and affordable energy (SDG 7). By supporting smallholder farmers, empowering local economies, and promoting intra-OIC trade, ITFC has also played a key role in fostering strong global partnerships to accelerate sustainable development across member countries (SDG 17). The 2024 ADER affirms ITFC's deepening commitment to transparency, sustainability, and measurable impact. As the Corporation looks ahead, it remains focused on bold innovation, collaborative partnerships, and leveraging Islamic finance to build a more inclusive and sustainable global trade ecosystem. Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC). Contact us: E-mail: ITFC@ Social media: Twitter: Facebook: LinkedIn: International Islamic Trade Finance Corporation (ITFC) ( About the International Trade Finance Corporation (ITFC): The International Islamic Trade Finance Corporation (ITFC) is the trade finance arm of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socio-economic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries' needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market. SOURCE: International Islamic Trade Finance Corporation (ITFC)
Arab News
20-07-2025
- Business
- Arab News
New credit card rules redefine consumer protection in Saudi Arabia
To strengthen consumer protection and enhance market transparency, the Saudi Central Bank, known as SAMA, last month announced updated regulations on the issuance, operation, and fees of credit cards. SAMA's updated credit card regulations will replace the previous rules established in 2015 governing the issuance, operation, and charges of credit cards. The new regulations will take effect within 30 to 90 days. For example, updates to fees and charges will be implemented within 30 days, while standardized disclosure sections — detailing all applicable fees, costs, and benefits — will be incorporated into credit card agreements within 90 days. The updated rules establish guidelines for credit card issuers to enhance disclosure, improve transparency, and reduce the cost of credit cards for consumers. The rules also include detailed provisions governing the operational aspects of credit cards to increase consumers' financial awareness and foster a regulatory environment that promotes innovation in the financial sector. In addition, SAMA has collaborated with international card schemes to review and revise the fees and charges for credit card transactions, as part of its broader strategy to enhance digital payments for consumers and visitors to the Kingdom, in line with the objectives of Vision 2030. As part of the key updates to fees and charges, cash withdrawals below SR2,500 will incur a fee capped at 3 percent of the transaction amount, while withdrawals of SR2,500 or more will be subject to a maximum fee of SR75. Additionally, international purchases will now incur a fee of 2 percent of the transaction value. Customers are also allowed to deposit funds exceeding their credit limit and may withdraw these excess amounts at any time without incurring additional charges. With respect to repayments, customers may pay off their full outstanding balance without being subject to late payment fees, provided payment is made within a mandatory grace period of at least 25 days. In addition to enhancing transparency and disclosure, the new regulatory provisions are expected to encourage consumers to hold more credit cards, driven by improved fee structures and reduced charges. SAMA's efforts, in collaboration with international card schemes, to revise transaction fees are expected to encourage broader credit card acceptance among merchants in Saudi Arabia. This will offer consumers greater payment flexibility alongside MADA cards, particularly as credit card usage at POS terminals and for local online purchases remains free of charge. This will not only provide credit card holders with additional payment options but also help merchants boost their sales and revenues. Importantly, the updated credit card regulations are expected to bolster the tourism sector in the Kingdom by facilitating credit card payments for foreign tourists, thereby enhancing overall tourism-generated income. It will also support SAMA's strategy to enhance digital payments for consumers and visitors to the Kingdom. Finally, the regulatory updates will contribute to the Kingdom's transition toward a cashless society and digital economy, in line with the strategic goals of Vision 2030. They also guide credit card issuers and banks, and reflect how this reform aligns with Saudi Arabia's broader strategy to create a more robust, cashless, and consumer-centric financial environment. • Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
