Business chambers in Islamic countries can play a key role in facilitating trade between the OIC member states, Sharjah Chamber of Commerce and Industry director-general Hussain Mohamed Al Mahmoudi said during a panel discussion at the recent 16th OIC Private Sector Forum.
Hosting a session entitled “Role of chambers and private sector in maximising the level of intra-Islamic Trade by utilising the agreements of TPS-OIC”, Al Mahmoudi said that many topics were up for discussion in this year’s event, and the role of the chambers in facilitating the trade between the OIC member states is at the heart of every topic. The session heard the views of speakers from the Federation of GCC Chambers of Commerce and Industry, the Federation of the UAE Chambers of Commerce and Industry, as well as the chambers of commerce of Sharjah, Jordan, Egypt, Riyadh and Qatar.
“We are meeting with our peers from other chambers to identify the best methods that will help us effectively increase the trade, overcome the challenges and play a key role in the growth of individual sectors that shape the OIC countries as a whole, it being food, tourism, lifestyle, healthcare, import/export or even media,” he said. “With the new legislative and institutional mechanisms established, we are more confident that the 2015 target of 20 per cent intra-OIC trade is more achievable.”
To achieve that goal, the Trade Preferential System was formed representing a series of agreements designed to facilitate trade between member states. The aim of the system is to increase intra-OIC trade through the exchange of trade preferences between member states. Among its main features are the most favoured nation principle — equal treatment of member states — special treatment for least-developed member states. The preferences include tariffs, para tariffs and non-tariff concessions.
Chambers can play a key role in facilitating knowledge sharing, he said, adding: “There is a lack in human capital within the OIC member states, which is creating many delays and obstacles in international trade including intra-OIC trade.”
Export development centres need further development as there are only 39 centres for export development out of 57 member states. A recent study by the World Bank on 100 countries including some of the member states showed that every $1 invested in promoting exports, the overall value of exports is increased by $40.