D-8 CREATIVE ECONOMIC & FINANCIAL CENTRE (D-8 CEFC) PRIVATE INITIATIVES
D-8 Organization for Economic Cooperation (D-8) is a cluster of developing countries comprising Turkey, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria and Pakistan. It is a forum with no adverse impact on bilateral and multi-lateral commitments of the member countries, emanating from their membership of other regional or international organizations.
Its objectives are as follows:-
D-8 was forecasted by PWC (2018) as the future World Economic Powerhouse in 2050. Considering the respective roles of the government and private sector as complementary in economic development process, whereby governments have a vital role to play in regulating and facilitating and improving social conditions and opportunities, the Vision of D-8 is:
D-8 cooperation according to its Decennial Roadmap (2020-2030) is poised to achieve the following objectives:-
(i) By the end of 2030, the intra-trade of Member States would reach at least 10 percent of their total trade; (ii) Member States will work on all matters relating to trade facilitations such as customs cooperation, capacity building, policies, programmes and activities of trade cooperation, including the enhanced participation of the private sector to be accomplished by 2028. (iii) Member States will explore opportunities of establishing and/or enhancing cooperation on investment, banking and financial institutions, infrastructural development, human resources development, health and social protection, science and technology, microfinance, migrant workers and remittances, small and medium enterprises, ICT and other issues subject to the approval of the Commission. (iv) Member States will enhance their growth trajectory as well as developmental aspirations with a view to improving their positions in the global economy.
D-8 has launched the roll-out plan to further consolidate economic cooperation within the D-8 community by boosting intra-trade through among others, full implementation of the D-8 PTA, Customs and Visa agreements and working towards achieving higher economic development and social welfare of the peoples of the Member States.
MAJOR COMPONENTS/ELEMENTS OF D-8 CEFC
D-8 – AHG COLLABORATION
In December 2018, a strategic economic collaboration between D-8 and Al-Hidayah Group was formed through the official signing of a Statement of Intent (S.O.I.). It is known as D-8 Creative Economic & Financial Centre (D-8 CEFC). The collaboration was intended to initiate D-8 common plan in establishing more socio-economic sustainable development activities to achieve creative, innovative, harmonious, friendly and trustworthy sphere of life. The focus areas under the collaboration framework include Zakat, Waqf, Sadaqah, Hibah, Islamic Finance (particularly ArRahnu, i.e. Islamic pawn-broking, Takaful and Islamic Banking), Halal Hub, and Global Mosque Network through E-Commerce (remittance, e-recruitment, Halal Trading & Halal Certification, Payment Gateway), HAJ Management, etc. whereby I.T. platform and Big-Data are the enablers. Subsequent to the S.O.I., D-8 CEFC strategic action plan was further deliberated during D-8’s 42nd and 43rd Commission meetings.
D-8 CEFC Objectives, attaining to D-8 Charter
D-8 CEFC Vision
D-8 CEFC Mission
The Halal Hub
CEFC is envisioned to encourage Halal industry development among D-8 Member States in terms of Halal products mass production, research, training & coaching, Halal certification and accreditation.
The infrastructure or building
To kick-start D-8 CEFC programmes, a 30,000 square feet office space area with parking facilities are allocated at the Hidayah Tower, Wangsa Maju, Kuala Lumpur.
The I.T. Platform
The digital I.T. platform is intended to be developed in consolidating all CEFC programmes and linking the ecosystem components together. The I.T. digital platform will allow D-8 business intelligence, data centre establishment and publications as well as Halal (with Block-chain features) E-Commerce cross-border transactions, various CEFC events, programmes connecting Global Mosque Network and member services using Islamic financial instruments and payment systems.
The development plan of the digital I.T. platform is envisioned as the effective enabler - achievable, flexible and fiscally responsible in support of CEFC initiatives.
D-8 CEFC Initiative Framework
CEFC offers a complete Ecosystem involving private sectors (industry players), institutions, government (and authorities) and universities (scholars) guided by the Maqasid As-Shariah of the Islamic Jurisprudence. The inclusive ecosystem will encourage more production, learning and capacity building which later leads to higher purchasing power and more consumption and investment for vibrant Islamic Economic transactions.
CEFC Business Centre
It shall be the reference centre for CEFC activities – where it provides business intelligence, data and research centre, advocacy, publicity and member services, research and innovation facilities as well as promotion and marketing centre to equip CEFC entrepreneurs with the necessary requirements to enter into D-8 and global market so as to remain competitive.
Since CEFC Ecosystem involves international business development exploration and cross-border transactions, its establishment is eminent in complementary to the existing business chambers or trade associations. It serves as the one-stop-information centre for member and business communities where relevant policy-making and government/authorities intervention for issues related to D-8 CEFC matters are concerned. It shall complement activities by other D-8 programmes in the attempt to enhance GDP of each D-8 member state through Islamic Economic approach parallel to the existing economic systems.
The membership classification entails D-8 corporate and private companies with specific privileges.
The Financial Centre
CEFC shall establish a financial centre whereby economic and commercial activities shall adopt Islamic financial instruments and payment systems as the alternative to the conventional instruments. Through creative economics, CEFC shall promote more Islamic innovative financial products & services and support the revival of social finance instruments such as waqaf as the proven viable financial instruments of social justice and development.
The foundation is regarded as the engine of economic growth of the CEFC focused areas through mobilization of resources (labour, land, capital, entrepreneurship, technology). Its main function is to introduce and promote sustainable economic models, creatively designed in new economic and business ventures, mutually benefitting all parties involved. Its activities are carried out by the SPV. CEFC proposes individual foundation to be established in each Member State and shall be centralized by the main foundation located at Labuan Offshore, Malaysia to consolidate and integrate activities for all D-8 Member States.