The world bank will open its first center on Islamic Finance
ISTANBUL — World Bank Group President Jim Yong Kim
today opened the Global Center for Islamic Finance, together with Turkish
Deputy Prime Minister Ali Babacan, as part of a two-day visit to Turkey that
focused on enhancing the partnership between the Bank Group and Turkey – the
second largest World Bank Group client and a growing key regional player.
The Global Center is envisaged as a knowledge hub for developing Islamic
finance globally, conducting research and training, and providing technical
assistance and advisory services to World Bank Group client countries
interested in developing Islamic financial institutions and markets.
On the occasion of the opening, Kim stated that the Center is a
symbol of the Bank Group’s shared objectives of developing Islamic finance and
maximizing its contribution to poverty alleviation and shared prosperity in
client countries.
“It is my hope that this Center will become the cornerstone for
these efforts, serving as a knowledge hub,” emphasized World Bank Group
President Jim Yong Kim, “with Turkey taking a leading role in designing and
delivering cutting-edge technical assistance, advisory services, as well as
generating and disseminating practical knowledge on how to make Islamic finance
more relevant for growth and development.”
Earlier in his trip, Kim attended the 5th Izmir Economic Congress,
a national economic forum that helps shape the economic policy agenda of the
country for the coming years. In his opening remarks, Kim underlined the twin
goals of the World Bank Group to end extreme poverty by 2030 and boost shared
prosperity for the bottom 40 percent in developing countries.
“Turkey’s economic achievements are an inspiration for many other
developing countries,”said Kim. He added
“We look forward to continuing our productive partnership with Turkey to help
sustain your impressive achievements, to overcome your remaining challenges,
and to share your remarkable experience with countries around the globe.”
Subsequently, Kim took part in a moderated panel discussion on
current global economic developments with Deputy Prime Minister Ali Babacan.
In earlier meetings with Turkish President Abdullah Gül, Kim
informed the Turkish leader of the new World Bank Group Strategy, how the Bank
can share its global experience and knowledge, and the scope for increasing the
Bank Group’s financial capacity and, hence, its relevance in middle-income
countries. The two leaders also exchanged views on Turkey’s growing regional
and global role.
Kim met with Turkish Prime Minister Recep Tayyip Erdoğan. Their
discussion covered a range of issues, including Turkey’s broader development
agenda, developments in the neighboring region, and how to evolve the Bank’s
longstanding partnership with Turkey to cover cooperation and knowledge sharing
in other countries. “Turkey has the history, capacity, and accumulated
knowledge from experience to play a large and responsible role as a development
partner and emerging donor,” stressed Kim.
Prior to concluding his visit to Turkey, President Kim will attend
the 8th Investment Advisory Council (IAC) of Turkey at the invitation of Prime
Minister Erdoğan. The IAC is an annual
gathering of top national and international private sector representatives to
share their views on Turkey's competitive position in the world economy and
advise on how to improve the flow of foreign investment. The IAC gathering came
two days after the release of the 2014 Doing Business rankings, which saw
Turkey marginally improve its position to 69th place among 189 countries.
Turkey joined the World Bank in 1947. Today, the Bank’s portfolio
is concentrated and strategically focused, with 11 investment projects and
US$4.6 billion net commitments. Over the last decade, the Bank has worked with
Turkey on maintaining prudent macroeconomic policies, restructuring the
country’s banking system, making public administration more efficient,
restructuring the health sector, reforming the energy sector, and supporting
disaster risk management. The
International Finance Corporation’s (IFC) strategy in Turkey is to support
private sector development. Currently, the outstanding portfolio for IFC’s own
account is US$2.4 billion. Fiscal year 2013 was a record year for the IFC in
Turkey with US$985 million of investments in 20 projects. Turkey is MIGA’s 8th
largest country by gross exposure, representing about 4.2 percent of MIGA’s
gross portfolio. MIGA’s portfolio consists of 6 projects with a gross exposure
of US$454 million.
About the World Bank Group
The World Bank Group is comprised of five institutions: the World
Bank, which is made up of the International Bank for Reconstruction and
Development (IBRD), which provides financing, risk management products, and
other financial services to middle-income countries; the International
Development Association (IDA), which provides interest-free loans and grants to
the poorest countries; the International Finance Corporation (IFC), which makes
equity investments, and provides loans, guarantees, and advisory services to
private-sector business in developing countries; the Bank Group’s political
risk insurance agency, the Multilateral Investment Guarantee Agency (MIGA); and
the International Centre for Settlement of Investment Disputes (ICSID), which
provides international facilities for conciliation and arbitration of
investment disputes.
Source: World Bank
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