Business & Finance Club - Manama : Al Baraka Banking Group has signed a memorandum of understanding (MoU) with the Islamic Corporation for the Development of the Private Sector (ICD), the investment arm of the Islamic Development Bank.

ICD's goal is to assist private sector companies and institutions in the Organisation of Islamic Conference countries and enhance co-operation between them.

The MoU was signed by Al Baraka president and chief executive officer Adnan Ahmed Yousif and ICD chief executive officer Khaled Al Aboodi, at Al Baraka Banking Group's 31st symposium on Islamic Economics in Jeddah, Saudi Arabia.

Yousif said that the MoU agreement sets a framework for co-operation between Al Baraka Banking Group and ICD.

"There is no doubt that Al Baraka Banking Group is an Islamic world leading institution in terms of offering Sharia-compliant products and services with a large network of subsidiary units that have achieved continued successes and excellent growth in recent times," said Al Aboodi.

"By this MoU, Al Baraka Banking Group seeks to forge a partnership with ICD for the benefit of private sector companies and institutions in the member states of the Organisation of Islamic Conference," he said.

He added that the MoU included clauses that facilitate entering into arrangements to finance a number of projects in co-operation with Al Baraka Banking Group or the issuance of sukuks for certain projects by the group's subsidiary units.

On Tuesday, Al Baraka announced it planned to enter the Saudi Arabian market through the acquisition of an Islamic investment company valued at about 300 million Saudi riyals ($80 million).