ICCI Confident OIC Intra Trade Can Rise By 8 Billion USD Annually From 2005 With Malaysia's Formula

Premier Malaysian Trade Facilitator OICnetworks Spells Out Key Formula At 9th Islamic Trade Fair 2002 To Intensify OIC Intra Trade

(PRWEB) January 13, 2003

SHARJAH, UNITED ARAB EMIRATES --- The international and highly influential Islamic Chamber of Commerce and Industry is confident that the intra trade volumes between the 57 OIC member nations can rise by USD8 billion annually from 2005 if member states subscribe to the Malaysian made Information and Communications Technology (ICT) model “OICtrade”.

According to a 2001 World Bank report, current trade levels among OIC member countries in 2000 stand at USD813 billion representing a meagre 6.4 per cent of the total world trade volume of USD12.6 trillion.

The OIC market is estimated at a population of 1.3 billion in the 57 member countries, a population equivalent to China.

In a speech at the inauguration of the website-based trading and commercial facilitation system, ICCI acting president Abdulla bin Rashid Al-Kharji said, “The time has come for the 57 member nations to modernise and succeed with ICT to form a unique trade bloc such as those of Europe and the US to compete in the global market.”

In a bid to boost connected trading opportunities between members of the 57-strong Organisation of Islamic Conference (OIC), Malaysian technology joint venture OICnetworks Sdn Bhd today launched the ‘OICtrade’ facilitation platform at the 9th Islamic Trade Fair 2002 (ITF 2002) in Sharjah where more than 25,000 visitors are attending and seeing it for the first time in the Middle East.

“The need for a technology-driven model is imperative to compete globally for a greater share. OIC member nations can benefit if they are relevant with the international trading systems adopted by the world,” said Dr Ishkandar Baharin, President and CEO of OICnetworks.

In the first phase, three countries will be connected to the network - the UAE, Malaysia and Indonesia. Saudi Arabia and four other countries will be added in 2003 and ten more in 2004.

The project will target the private sector in each country.

The web platform will bring together buyers from individual markets with a variety of sellers. Deals can be struck using the same channels.

“Malaysian SME companies can benefit tremendously as our country has the most diverse range of goods and services that are highly sought after by middle Eastern countries,” said Dr Ishkandar.

Incorporated in Kuala Lumpur through a joint venture between the Islamic Development Bank of Jeddah and MIMOS Berhad a Malaysian government-owned ICT company, OICnetworks offers value-added facilities to ensure the success of its trade platform.

The primary shareholders have committed USD15 million. Trial tests are currently taking place in Malaysia and Indonesia, and the promoters are hopeful that actual rolling out of services will pass off without a hitch. Malaysia is also hosting the IT infrastructure for the venture.

"We will shortly set up OICtrade UAE through a local partner, and will be signing arrangements with select banks to act as the local facilitator for services such as bills of lading," said Dr Ishkandar.

"Negotiations are taking place and should be complete by early January."

The chosen UAE partner will also take care of the front and back end operations from this end, as and when required. OICnetworks has signed up two Malaysian banks for its operations there.

The venture expects to break even within three years, with revenues coming in from member subscriptions and for such services as trade facilitation. By 2005, the promoters are hopeful that the level of OIC trade would swell by another USD8 billion through the web-based route.

At ITF 2002, Dr Ishkandar also presented the merits of the OICtrade platform at a closed-door meeting attended by key industry players in the Islamic Chamber of Commerce and Industry (ICCI), the Islamic Centre for Development of Trade (ICDT) as well as the various heads of delegations from the 57 OIC member countries.

Dr Ishkandar’s paper ‘OICtrade – The Premier Trade Facilitation Platform – Now or Never’ presented jointly with the Islamic Development Bank, underscored how OICtrade built around the concept of trading enabled by ICT and facilitated by trusted parties, would speed up trade volume growth through technology and synergies in a methodical and relevant fashion.

He said, “OICtrade helps companies penetrate the OIC market by leveraging on the reputation, experience and networks of the Islamic Development Bank and the Islamic Chambers of Commerce and Industry of OIC member countries.”

“The OICtrade platform offers modules in trade information, promotion, transaction, implementation, trade closure, system accessibility and operational support – all managed on-line on the internet in conformance with international standards with an ease for buyers and sellers,” he said.

According to the trade facilitator, OICtrade modules are packaged for the seller or buyer, and offered as starter packs or premium packs.

“While the trade modules focus on online trade activities between buyers and sellers, these are also facilitated and monitored by OICtrade country representatives physically located in the country of these buyers and sellers to offer greater business intelligence and advantage,” explained Dr Ishkandar.

Earlier in October of this year, OICnetworks had entered into an agreement with the ICCI to strengthen business intelligence, networking, trade volumes and to undertake a joint business pilot programme leveraging on ICCI’s database.

The 9th Islamic Trade Fair is being staged from 21 – 26 December and sees the delegation from MATRADE, the external trade promotion arm of Malaysia's Ministry of International Trade and Industry, participating.