Nouakchott: Islamic Corporation for the Development of the Private Sector, the arm supporting the private sector in the Islamic Development Bank Group, has signed a memorandum of understanding (MoU) with the Islamic Republic of Mauritania for a period of three years aimed at enhancing strategic cooperation in private sector development and boosting economic capacities.
According to Saudi Press Agency, the MoU was signed in the presence of officials from both sides. It stipulates the corporation's commitment, on a non-binding basis, to work toward providing Shariah-compliant financing facilities valued at up to $900 million to support the iron ore development project in the Tiris Zemmour mining region in Mauritania, for Saudi Mining and Steel Company (Takamul). The project includes establishing a mine, processing facilities, and two iron pelletizing plants in Nouadhibou, along with supporting infrastructure for energy and water desalination, aiming to produce about 10 million tons of high-quality iron pellets annually.
The framework of cooperation also includes supporting Mauritania's efforts to enhance its sovereign credit rating and to develop the public-private partnership system, in addition to providing financing lines for local financial institutions to expand access to funding for small and medium-sized enterprises and to identify and finance investable projects in priority sectors, particularly the energy sector.