Achieving the objectives of sustainable development, peace and prosperity has been at the heart
of the Organisation of Islamic Cooperation (OIC) since its establishment. Today, intra-OIC
cooperation is growing in both scale and scope, with socio-economic progress and prosperity of
Islamic world being the key focus of the OIC development agenda. The OIC has strengthened
cooperation among its members through high-level political declarations, regular technical
meetings with representatives of the Member States and the establishment and supporting of
numerous OIC institutions. Thanks to the efforts of these institutions, concrete actions and
significant results have been achieved in many areas of cooperation. One of the main achievements
of OIC Member States in recent years is the continuous strengthening of functional and sectoral
cooperation.
The past few years have shown how quickly various shocks can affect the global economy,
especially due to pandemic and geopolitical conflicts. The evolving trade and investment
dynamics necessitate better economic resilience with a stronger focus on developing a robust
private sectors and SMEs in OIC countries. SMEs, in particular, are the backbone of economies,
driving innovation, job creation, and economic diversification. However, these enterprises often
face challenges such as limited access to finance, regulatory barriers, and inadequate
infrastructure. Addressing these issues is critical to fostering an environment in which SMEs can
thrive and contribute significantly to economic growth. In this context, this report provides
comprehensive insights into the issues and challenges faced by OIC countries along with policy
options to overcome these challenges.
The OIC recognizes the critical role that the private sector and SMEs play in achieving economic
growth and development. Efforts to improve access to finance through conventional and Islamic
financial instruments, streamline regulatory processes, and invest in infrastructure are critical to
support the growth of these enterprises. By fostering a favourable business environment, OIC
countries can improve the competitiveness of their private sector, promote economic
diversification, and ensure inclusive growth that benefits all segments of society.
With their unique economic structures, resource endowments, and demographic profiles, OIC
countries are navigating global developments in their own distinct ways. The private sector, and
particularly SMEs, has become a key driver for many OIC countries, offering pathways to
economic growth, diversification, and inclusion. The rise of SMEs presents both opportunities and
challenges for OIC countries. On the one hand, SMEs have the potential to drive economic
diversification, improve competitiveness, and empower young and dynamic populations. On the
other hand, they face significant challenges in terms of access to finance, regulatory burden, and
market access. Addressing these challenges requires coordinated efforts to develop supportive
policies, provide financial incentives, and create a business-friendly environment.
In the ever-evolving global economic landscape, the OIC recognizes the importance of
strengthening the private sector and SMEs development as essential components of our
commitment to socioeconomic development and prosperity. We hope that this report will serve
as a valuable resource for policymakers, businesses, researchers, and all stakeholders interested
in understanding the changing global economic dynamics and the role of the private sector and
SMEs in shaping the future. In an increasingly interconnected world, knowledge and informed
decision-making are crucial, and we trust that this report will contribute to a deeper
understanding of these critical issues.
I would like to express my sincere appreciation to SESRIC for producing this report, and
encourage our Member States to engage with its contents, drawing inspiration and guidance to
shape their own national strategies to support the development of the private sector and SMEs as
they work towards a better future