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JEDDAH: Djibouti’s energy security will receive a major boost as the International Islamic Trade Finance Corp. signs a $90 million syndicated facility to support the country’s procurement of refined petroleum products. 

The deal, signed by ITFC Chief Operating Officer Nazeem Noordali and Djibouti’s Minister of Economy and Finance Ilyas Moussa Dawaleh, will enable the Société Internationale des Hydrocarbures de Djibouti to finance the procurement of essential fuel imports. 

The facility forms part of ITFC’s broader engagement with Djibouti under a $600 million three-year framework agreement signed in 2023. That accord aims to strengthen key sectors, including energy, agriculture, health, and private enterprise. 

Commenting on the agreement, Noordali stated: “Djibouti’s economic potential is closely tied to the strength of its energy sector, and substantial investment is essential to unlocking that potential. ITFC reinforces its commitment to supporting Djibouti’s energy security and sustainable growth through this new facility.” 

He added: “We are pleased to strengthen our long-standing partnership with Djibouti and help bolster SIHD’s ability to successfully deliver on its mandate of securing the country’s supply of oil products. We remain dedicated to advancing Djibouti’s economic development and will continue channeling funding where it creates the greatest impact.” 

The transaction follows a $90 million Murabaha financing agreement concluded in February 2024 for a similar purpose, also executed with SIHD. At that time, ITFC reported total approvals of $1.6 billion for Djibouti across 33 operations in energy and health.

Djibouti, located along one of the world’s busiest shipping routes at the mouth of the Red Sea, relies heavily on imported petroleum products to meet its domestic energy demand. 

The country’s government has prioritized securing reliable fuel supplies to sustain economic growth, particularly as it positions itself as a logistics and maritime hub for East Africa. 

Since 2008, the Jeddah-based multilateral lender — a member of the Islamic Development Bank Group — has extended $1.7 billion in financing and capacity-building support to Djibouti. 

The new deal is expected to enhance the country’s fuel security, sustain electricity generation, and support trade among Organization of Islamic Cooperation member states. 

ISLAMABAD: The Pakistan government has constituted a high-level committee to steer bilateral economic engagements and negotiations with ������Ƶ, according to an official notification issued by the prime minister’s office on Sunday.

It is widely believed that Islamabad and Riyadh will sign a wide-ranging economic pact as early as this month, weeks after they inked a mutual defense pact, significantly strengthening a decades-old security partnership. 

Pakistan’s alliance with ������Ƶ — the site of Islam’s holiest sites — is rooted in shared faith, strategic interests and economic interdependence. Nearly 2.6 million Pakistanis live and work in ������Ƶ and are also the largest source of remittances to the South Asian nation.

Pakistan has pushed in recent months to strengthen trade and investment ties with friendly nations, particularly the Kingdom, which has promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up foreign reserves and fight a chronic balance of payment crisis. 

According to the PM office notification, the committee will be co-chaired by Minister for Climate Change Musadik Masood Malik and Lt. Gen. Sarfraz Ahmad, National Coordinator of the Special Investment Facilitation Council, a civil-military body that oversees foreign investments. 

“The Co-Chairs shall constitute Core/Negotiation Teams for negotiations with the Saudi counterparts. These teams shall be responsible for implementing and executing the assigned tasks on fast-track basis,” the notification said. 

It further noted that all members and representatives would ensure availability from Oct. 6 onwards and that the PM has directed the SIFC to process members’ travel approvals “within one hour the same working day.”

The committee has been tasked to submit progress reports to the Prime Minister on a fortnightly basis, with the SIFC Secretariat providing administrative support.

Other members of the committee include Minister for Economic Affairs Ahad Khan Cheema, Minister for Power Awais Leghari, Minister for Commerce Jam Kamal Khan, Minister for National Food Security & Research Rana Tanveer Hussain, Minister for Communications Abdul Aleem Khan, Minister for Information Technology & Telecommunication Shaza Fatima Khawaja, and Special Assistant to the Prime Minister on Industries & Production Haroon Akhtar Khan, among others.

Bilateral trade between Pakistan and ������Ƶ remains highly imbalanced, with Saudi exports to Pakistan vastly exceeding Pakistani exports in recent years. In 2023, ������Ƶ’s exports to Pakistan were estimated at approximately $4.65 billion, while Pakistan’s exports to ������Ƶ were much smaller, such as about $138 million in rice among other goods. 

In 2024, Pakistan’s total exports to ������Ƶ stood at around $734 million, with major items including cereals and meat, while Saudi exports to Pakistan included refined petroleum and chemical products. 

Last October, Pakistani and Saudi business communities signed 34 MoUs worth about $2.8 billion during a visit by a Saudi investment delegation. It is unclear how many of those MoUs have been converted into active projects or contracts in a year.