Friday, July 10, 2020 / 1:00 PM / Bukola Akinyele for WebTV / Header Image Credit: ISDB-Engage
The Joint Gross Domestic Product (GDP) of the Organization of Islamic Countries (OIC) is currently estimated at $7trn, with an annual growth rate standing at 8%.
President of the Islamic Development Bank (ISDB) Dr. Bandar Hajjar disclosed this recently at a coordinated webinar in partnership with the United Arab Emirates Ministry of Economic Development and the Private Sector Group, which explored the "Action Response to COVID-19".
Dr. Hajjar acknowledged the fact that the world is facing serious health crises with unprecedented economic and social consequences. Mostly are either the least or fragile state will shrink by an average of 2.1% in 2020.
He was of the view that sectors such as commodities supply chain, tourism and the Micro Small Business and Enterprises were adversely affected by the pandemic. According to him, these sector accounts for more than 90% of economic activities and over 50% of the world jobs, it contributes to more than 40% of the GDP in developing countries.
Despite these challenges from the global pandemic, the ISDB President was optimistic about the light at the end of the tunnel.
Speaking further he asserted that member countries including many of the world's fastest-growing economies, combined represented the purchasing power of almost one-quarter of the world's population.
He highlighted the fact that the ISDB in partnership with the private sector had outlined the 5Ps to achieve a robust and strategic response effort to the impact of the pandemic.
The 5Ps cover public, private, philanthropy and people partnership through an innovative global coordination platform, leading the way for development and transformation in the OIC member countries.
"ISDB member economies have the potentials to further increase the market share in the global economy, and turn these immediate challenges(pandemic) into opportunities for growth," He said.
Giving the outlook of developments in the ISDB, Dr. Banda Hajjar said a Memorandum of Understanding, MOU will be signed with other related Non-Interest International Financial Institutions and Development Agencies, to deepen cooperation that increase foreign direct investment flows into member countries by more than $100billion. $50b of the investments will come in the form of intra-OIC investment to turn the COVID 19 Pandemic into an opportunity to rethink development.
He reminded stakeholders that ISDB set aside $2.3bn as its support funding for OIC member countries to navigate the pandemic, which will be anchored on "Respond, Restore, and Restart". The funds according to him are primarily destined for erecting a robust trade and investment platform that allows OIC member countries to access opportunities and attain the United Nations' Sustainable Development Goals.