The International Islamic Trade Finance Corporation (IFTC), a unit of the Saudi Arabia-based Islamic Development Bank (IDB) has signed a $75 million financing agreement with Djibouti.

According to the Energy Minister, Yacin Houssein Bouh, this deal will enable the nation buy refined petroleum products. It will also help to reduce fuel prices and ensure regular supply of petroleum products in the country.

Over the years, IDB has signed agreements with several of its member countries in Africa to help improve their economic conditions. Djibouti is a member country of the IDB as 94 percent of its population are Muslims. In order to increase banking penetration and improve infrastructure in recent years, the nation has promoted Islamic finance.

How Djibouti will benefit from this deal

“The adoption of this project will enable the International Society of Hydrocarbons of Djibouti to accomplish its import mission of oil and oil products at the best prices,” Yacin told Reuters. “This project funding is to stabilize and steady prices of refined petroleum products in the event of sharp fluctuations in oil prices on international markets.”

What you didn’t know about the IDB Group

The Islamic Development Bank (IDB) Group has an autonomous entity within the group known as the IFTC.

The IFTC aims to advance trade and improve the economic condition of people across the Islamic world.

In January, Togo signed three funding agreements worth $194 million with the IDB.

In February, the president of the Bank, Ahmad Ali, stated that IDB would work with Nigerian officials to develop a comprehensive plan for the reconstruction of Northern Nigeria.

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