Islamic nations to form trading group

Muslim nations will form a preferred trading group by the end of the year aimed at greater economic integration among the Organisation of Islamic Conference countries, while plans are afoot to form a giant 'Islamic bank'.

"Economic strength can give the OIC greater clout and secure for itself a more influential voice in international affairs," Abdullah Badawi Malaysian premier said at the OIC Trade Forum and Exhibition underway at Putrajaya.

So far 14 countries have signed and ratified the framework agreement on trade preferential System - OIC. Under the plan, countries will reduce tariffs in a gradual three stage process while there will also be fast track mechanisms.

OIC nations accounted for just eight per cent of global trade while trade within the bloc amounted to 13 per cent of he grouping's total trade, reports here said.

The 14 countries who have signed and ratified the framework agreement so far are - Pakistan, Bangladesh, Malaysia, Iran, Turkey, Tunisia, Lebanon, Libya, Egypt, Cameroon, Indonesia, Guinea, Jordan and Uganda.

Malaysia's Trade Minister Rafidah Aziz said under the Trade Preferential System - OIC, there would be a three-stage lowering of tariffs and negotiations would be conducted on tariff reduction modalities and implementation period.

The Islamic Development Bank and other private banks will hold a meeting tomorrow to chart out the details of a proposed International Islamic Bank to help finance large development projects in Muslim nations.

Islamic banks currently manage close to $300 billion in assets globally.