The Bank for the Financing of Small and Medium Enterprises (Bfpme) and the Islamic Corporation for the Development of the Private Sector Development (Isdb) signed on January 2nd three agreements to boost the development of Islamic finance in Tunisia.

The first agreement relates to a 350,000 dinars grant (around €170,000) from the Isdb to the Bfpme for the introduction of new Islamic banking products and services targeting Tunisian SMEs.

The second agreement focuses on technical assistance provided by experts of the Bfpme, La Presse newspaper reports.

The third cooperation agreement will be signed between the Bfpme and United gulf financial services-North Africa, which manages the "Theemar" fund.

Its objective is to facilitate the financing of investment projects and promote the coordination between the three parties during the evaluation of credit applications.

Launched on 23 November, the fund "Theemar" is the first Islamic fund of Tunisia, with a budget of 50 million dinars (24.4 million euros).

It is financed by the Islamic Development Bank, Bank Al-Baraka and the Caisse des Dépôts et Consignations (CDC) in Tunisia.

Tunisia comes 23rd in world rankings of Sharia-compliant assets, with $800 million (€619 million) out of $36 billion globally, Islamic Finance News reports.