The Islamic Corporation for the Development of the Private Sector (ICD) Signs Memorandum of Understanding with JANA to Test New Banking Model
JEDDAH, Kingdom of Saudi Arabia, January 23, 2018/ — The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group, signs today a Memorandum of Understanding (MoU) with JANA Bena’a Productive Families of Saudi Arabia in order to test a new banking model named “Biniog Sathi”.
With the signing of the MOU, both parties agreed that JANA will be incorporating the new model as a test case in its Qarde Hasanah Programme, which is now being operated in different parts of Saudi Arabia.
Mr. Khaled Al-Aboodi, the CEO & General Manager of ICD and Mr. Mohammed Al Khamis, the Chairman of JANA Bena’a Productive Families signed the MOU on behalf of their respective institutions.
“Biniog Sathi”, meaning “Friend in Investment” in Bangla, is a new generation banking model developed by ICD that will resolve the problem of credit default in the banking industry with the help of Zakat and Sadaqa. The model is based on Islamic Finance principles and it will make Islamic Banking more competitive.
During the signing event, Mr. Khaled Al Aboodi, the CEO of ICD said, “This is the first pilot test to be conducted under the model in Saudi Arabia and we believe the test will be successful in order to run a full-fledged operation in the future in sha Allah.”
Mr. Mohammed Al Khamis, the CEO of JANA Bena’a Productive Families said, “This signing of the MOU will strengthen our ongoing Qarde Hasanah Programme, and I believe this new model will be highly beneficial for those who are in need.”
The signing ceremony was also attended by Mr. Mabroor Mahmood, Principal-Term Finance of ICD, Mr. Bassem Khanfar, Microfinance Advisor of ICD, and Mr. Mahmood Al Shami, the Executive Director of JANA Bena’a Productive Families.
