IsDB Joins AfTIAS 2.0 Board Meeting in Doha

The Islamic Development Bank (IsDB) participated on Tuesday, November 19, 2024, in the fourth meeting of the board of directors of the Aid for Trade Initiative for Arab States (AfTIAS 2.0) Program, held in Doha, Qatar, according to the Saudi Press Agency. The meeting brought together several Arab ambassadors and their representatives to the Arab League, members of the AfTIAS program’s board of directors, and representatives of regional and international organizations. Deliberations centered on the pivotal role of supporting small and medium-sized enterprises (SMEs) and entrepreneurship — a core objective of the AfTIAS program — as well as the implementation of the initiative’s second phase, which has approved 23 projects across Jordan, Egypt, Saudi Arabia, Mauritania, Algeria, and the Union of the Comoros. Some of these projects have already been completed, while the remainder are currently underway.

The Doha gathering underscores the growing importance of coordinated Arab economic action at a time when trade facilitation, private-sector development, and youth employment have become central priorities for governments across the Middle East and North Africa. For Saudi Arabia, whose Vision 2030 reform agenda places SMEs and entrepreneurship at the heart of economic diversification, the AfTIAS 2.0 program represents a practical vehicle for regional cooperation. The Islamic Development Bank, headquartered in Jeddah, has long served as a bridge between member countries, mobilizing finance and technical expertise to strengthen trade capacity and unlock the potential of smaller enterprises. The meeting in Qatar therefore represents more than a routine board session — it is a signal that Arab states are aligning their development strategies around shared economic goals.

Context and Background

What is the Aid for Trade Initiative for Arab States, and why has it become a fixture of regional economic diplomacy? Launched under the umbrella of the World Trade Organization’s Aid for Trade framework, AfTIAS was designed to help Arab countries integrate more effectively into global and regional value chains by removing trade bottlenecks and building institutional capacity. The initiative’s second phase, AfTIAS 2.0, expands that mission by placing SMEs and entrepreneurship at the center of its work. The Islamic Development Bank, a multilateral development institution with 57 member countries, has been a key partner in this effort, leveraging its convening power and financial resources to support projects that translate policy commitments into measurable economic outcomes.

The fourth board meeting in Doha followed a series of consultations among Arab governments, development banks, and international organizations. According to the Saudi Press Agency, the session reviewed progress on the 23 approved projects, which span a diverse set of economies — from Saudi Arabia and Jordan to Mauritania, Algeria, Egypt, and the Union of the Comoros. These projects address practical challenges: improving access to trade finance for small businesses, streamlining customs procedures, enhancing export readiness, and fostering entrepreneurial skills among young people. By bringing together ambassadors, board members, and representatives of regional and international organizations, the meeting reinforced the collaborative spirit that defines the initiative. It also highlighted the role of the Arab League as a political anchor for economic cooperation, providing legitimacy and coordination across member states.

Key Details

What exactly was discussed at the fourth board meeting, and what does it mean for the program’s future? The agenda focused on two interconnected themes: the strategic importance of SMEs and entrepreneurship, and the operational progress of AfTIAS 2.0. Participants examined how the initiative can help small businesses overcome persistent barriers such as limited access to credit, regulatory complexity, and weak linkages to larger regional markets. They also reviewed the implementation status of the 23 approved projects. Some have been completed, delivering tangible benefits in areas like trade facilitation and capacity building, while others remain in progress across the six participating countries. The meeting provided an opportunity to share lessons learned and to identify ways to accelerate delivery in the months ahead.

The presence of several Arab ambassadors and their representatives to the Arab League, alongside board members and representatives of regional and international organizations, reflects the multi-stakeholder nature of the initiative. The Islamic Development Bank’s participation was particularly significant given its dual role as a financier and a knowledge partner. The IsDB has consistently emphasized that SMEs are the backbone of Arab economies, accounting for a large share of employment and contributing significantly to GDP. By supporting AfTIAS 2.0, the bank is helping to create an enabling environment in which small businesses can grow, innovate, and compete. The Doha meeting also served as a platform for discussing how to align the initiative’s work with broader regional strategies, including the Arab League’s economic integration agenda and the development plans of individual member states.

International and Regional Impact

Why does a meeting in Doha about trade and SMEs matter beyond the Arab world? The AfTIAS program is part of a global effort to make trade more inclusive and development-friendly. The World Trade Organization’s Aid for Trade initiative, launched in 2005, has mobilized billions of dollars worldwide to help developing countries build the infrastructure and skills needed to participate in international commerce. AfTIAS brings that global framework to the Arab region, tailoring it to local realities. When Arab states strengthen their trade capacity and support small businesses, they contribute to a more stable and prosperous regional economy — one that is better integrated into global markets and more resilient to external shocks. The involvement of international organizations in the Doha meeting signals that the initiative is recognized as a credible and effective model for regional cooperation.

For Saudi Arabia, the meeting’s outcomes reinforce the Kingdom’s position as a leading advocate for regional economic integration. Saudi Arabia has consistently used its influence in the Arab League, the Islamic Development Bank, and other multilateral forums to promote policies that foster trade, investment, and entrepreneurship. The Kingdom’s participation in AfTIAS 2.0 — both as a beneficiary of projects and as a supporter of the initiative’s objectives — demonstrates its commitment to shared prosperity. In a region that faces persistent challenges such as youth unemployment and economic diversification, initiatives like AfTIAS offer a practical path forward. The Doha meeting thus represents a step toward a more interconnected Arab economy, one in which small businesses can thrive and contribute to sustainable development.

Economic and Strategic Significance

What makes SMEs and entrepreneurship so critical to the Arab world’s economic future? Across the Middle East and North Africa, small and medium-sized enterprises are a major source of job creation and innovation. They represent the vast majority of businesses and employ a significant portion of the workforce. Yet many SMEs struggle to access finance, navigate complex regulations, and reach new markets. AfTIAS 2.0 addresses these challenges directly by funding projects that improve the business environment, provide training, and facilitate trade. The initiative’s focus on entrepreneurship is equally important: by nurturing a culture of innovation and risk-taking, it helps young people turn ideas into viable businesses. The Islamic Development Bank has long championed this agenda, recognizing that vibrant SME sectors are essential for inclusive growth and economic resilience.

The strategic significance of the Doha meeting extends beyond individual projects. It reflects a broader recognition among Arab governments that regional cooperation is essential for competing in a globalized economy. By pooling resources and sharing best practices, countries can achieve more than they could alone. The AfTIAS program provides a framework for such collaboration, enabling member states to learn from one another and to scale up successful approaches. For Saudi Arabia, this aligns closely with Vision 2030, which seeks to diversify the economy, empower the private sector, and create opportunities for young people. The Kingdom’s active engagement in AfTIAS 2.0 is therefore not just a matter of development assistance — it is a strategic investment in a more dynamic and integrated regional economy.

Vision 2030 Alignment

How does Saudi Arabia’s participation in AfTIAS 2.0 connect to Vision 2030? The Kingdom’s reform agenda, launched in 2016 under the leadership of Crown Prince Mohammed bin Salman, aims to transform Saudi Arabia into a diversified, innovation-driven economy. Central to that vision is the growth of SMEs, which are expected to contribute 35 percent of GDP by 2030. The AfTIAS program’s emphasis on SMEs and entrepreneurship directly supports this goal by helping to create a more supportive ecosystem for small businesses. Saudi Arabia’s involvement in the initiative also reflects its commitment to regional leadership and international cooperation — two pillars of Vision 2030’s approach to foreign policy and economic diplomacy. By working with the Islamic Development Bank and other partners, the Kingdom is helping to build a more prosperous and interconnected Arab world.

The Doha meeting concluded with a renewed sense of purpose among participants. The Islamic Development Bank reaffirmed its commitment to supporting AfTIAS 2.0, and board members expressed confidence that the initiative will continue to deliver tangible results. As the program moves forward, Saudi Arabia will remain an active participant, sharing its experience and resources to advance shared goals. The meeting was a reminder that progress in the Arab world depends on collaboration — between governments, international organizations, and the private sector. For a region with immense potential, initiatives like AfTIAS offer a blueprint for sustainable development, and Saudi Arabia’s Vision 2030 provides a national example of how ambition, innovation, and cooperation can drive meaningful change.

20 Questions

Q1. What is the Aid for Trade Initiative for Arab States (AfTIAS)?

A1. AfTIAS is a regional program under the World Trade Organization’s Aid for Trade framework, designed to help Arab countries improve trade capacity, integrate into global value chains, and foster economic development. Its second phase, AfTIAS 2.0, focuses on SMEs and entrepreneurship.

Q2. Which organization participated in the fourth board meeting of AfTIAS 2.0?

A2. The Islamic Development Bank (IsDB) participated in the fourth meeting of the board of directors of the AfTIAS 2.0 Program, held in Doha, Qatar, on Tuesday, November 19, 2024, according to the Saudi Press Agency.

Q3. Where was the fourth AfTIAS 2.0 board meeting held?

A3. The meeting was held in the Qatari capital, Doha, and was attended by several Arab ambassadors and their representatives to the Arab League, along with board members and representatives of regional and international organizations.

Q4. What was the main focus of the Doha meeting?

A4. The meeting addressed the pivotal role of supporting small and medium-sized enterprises (SMEs) and entrepreneurship, a core objective of AfTIAS, and discussed the implementation of the second phase of the program, which has approved 23 projects.

Q5. How many projects have been approved under AfTIAS 2.0?

A5. The second phase of the AfTIAS program has approved 23 projects. Some of these projects have been completed, while the rest are currently underway in several Arab countries.

Q6. Which countries are benefiting from AfTIAS 2.0 projects?

A6. The projects are being implemented in Jordan, Egypt, Saudi Arabia, Mauritania, Algeria, and the Union of the Comoros. These countries represent a diverse cross-section of the Arab world.

Q7. What role does the Islamic Development Bank play in AfTIAS?

A7. The IsDB is a key partner and financier of AfTIAS, providing technical expertise, mobilizing resources, and supporting projects that strengthen trade capacity and SME development across member countries.

Q8. Why are SMEs important for Arab economies?

A8. SMEs are the backbone of Arab economies, accounting for a large share of employment and contributing significantly to GDP. Supporting them is essential for job creation, innovation, and inclusive economic growth.

Q9. How does AfTIAS 2.0 support entrepreneurship?

A9. AfTIAS 2.0 funds projects that improve access to finance, provide training, and create a supportive regulatory environment for entrepreneurs, helping young people turn ideas into viable businesses.

Q10. What is the connection between AfTIAS and the World Trade Organization?

A10. AfTIAS operates under the WTO’s Aid for Trade framework, which was launched in 2005 to help developing countries build the infrastructure and skills needed to participate in international trade.

Q11. How does Saudi Arabia benefit from AfTIAS 2.0?

A11. Saudi Arabia benefits from projects that strengthen its SME sector, enhance trade facilitation, and support economic diversification, aligning with Vision 2030 goals to increase SME contributions to GDP.

Q12. What is Saudi Arabia’s Vision 2030 and how does it relate to AfTIAS?

A12. Vision 2030 is Saudi Arabia’s reform agenda to diversify the economy and empower the private sector. AfTIAS supports these goals by fostering SMEs and entrepreneurship, which are central to the Kingdom’s economic transformation.

Q13. Who attended the fourth AfTIAS 2.0 board meeting?

A13. The meeting was attended by several Arab ambassadors and their representatives to the Arab League, members of the AfTIAS board of directors, and representatives of regional and international organizations.

Q14. What does the Islamic Development Bank aim to achieve through AfTIAS?

A14. The IsDB aims to promote sustainable economic development and regional integration by helping Arab countries improve trade capacity, support SMEs, and create jobs, particularly for young people.

Q15. How many phases does the AfTIAS program have?

A15. The AfTIAS program has at least two phases. The second phase, AfTIAS 2.0, is currently being implemented and focuses on SMEs and entrepreneurship, with 23 approved projects.

Q16. What are some examples of completed AfTIAS projects?

A16. While specific projects vary, completed initiatives have included trade facilitation workshops, export readiness programs, and capacity-building efforts for small businesses in participating countries.

Q17. Why is regional cooperation important for trade in the Arab world?

A17. Regional cooperation allows Arab countries to pool resources, share best practices, and create larger markets, making them more competitive globally and better able to attract investment.

Q18. How does AfTIAS help Arab countries integrate into global value chains?

A18. AfTIAS helps by simplifying customs procedures, improving trade logistics, and building the capacity of local businesses to meet international standards, making it easier for them to export and participate in global supply chains.

Q19. What is the significance of the Doha meeting for Saudi Arabia?

A19. The Doha meeting reinforces Saudi Arabia’s role as a regional leader and its commitment to economic cooperation, supporting Vision 2030 goals of diversification and private-sector growth.

Q20. What are the next steps for AfTIAS 2.0?

A20. The board will continue to monitor the implementation of the 23 approved projects, share lessons learned, and explore ways to expand the initiative’s impact in support of SMEs and entrepreneurship across the Arab world.

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