MICROCAPITAL BRIEF: 4th Global Islamic Microfinance Forum Hosted by AlHuda Center of Islamic Banking and Economics, Concludes with Release of “Road Map of Industrial Promotion”

The 4th Global Islamic Microfinance Forum was hosted by the AlHuda Center of Islamic Banking and Economics (AlHuda) in November in Dubai, United Arab Emirates, bringing together delegates from 25 countries including this author. Forum participants assessed the state of Islamic microfinance and explored the development and expansion opportunities of the sector. The event covered topics including the mechanisms of Sharia-compliant microfinance products, which eschew charging interest in favor of concepts like the sharing of profit and loss. Participants also discussed Sharia-compliant innovation including crowdfunding, youth development and housing cooperatives; the challenges of Islamic financial inclusion; sustainable growth models; and technology solutions for Islamic microfinance institutions (MFIs).

While addressing the audience, Mr. Qasar H. Naseem, the regional Head of Bank Advisory Services for the World Bank Group’s International Finance Corporation (IFC), said that “Islamic microfinance is rapidly being promoted in the Middle East and North Africa (MENA)”[1]. Referring to a recent IFC research study related to micro-, small and medium-sized enterprises (MSMEs), he said that “people in Muslim countries prefer Islamic finance to interest-based financing, and with this small business can be rapidly increased”[1]. In his speech, Dr. Muhammad Azmi Umer, Director General of the Islamic Research and Training Institute (IRTI) of Saudi Arabia’s Islamic Development Bank Group, said that “Islamic microfinance is the need of the time, and this can be used as a weapon for the poverty alleviation”[1]. He said that IRTI “is trying to play a vital role in its promotion and development through research and training so that Islamic microfinance could be highlighted as a best mode of financing for poverty alleviation”[1].

Dr Amjad Saqib, the Chairman of Akhuwat, a microfinance instution (MFI) in Pakistan, argued that poverty can be alleviated through “qard-e-hasna” (a goodwill loan) through which Akhuwat is providing loans to 300,000 people across Pakistan.

Mr Muhammad Zubair Mughal, the chief executive officer of AlHuda, announced at the closing ceremony of the event that the 5th Global Islamic Microfinance Forum is expected to take place in 2015 in Kuala Lumpur, Malaysia.

By Alíz Crowley, Research Associate

About AlHuda Center of Islamic Banking and Economics

Located in Pakistan, AlHuda Center of Islamic Banking and Economic is a nonprofit consulting firm that specializes in research and training in the Islamic microfinance industry. The organization also provides technical assistance in the area of Sharia law, publishes a monthly online magazine called “Islamic Banking and Finance News,” and organizes distance learning programs and in-person conferences.

Sources and Additional Resources

[1] Press release sent to MicroCapital by AlHuda Center of Islamic Banking and Economics

MicroCapital, August 8, 2014, AlHuda Center of Islamic Banking and Economics to Host 4th Global Islamic Microfinance Forum, November 1-4, 2014, Dubai, UAE

MicroCapital, April 12, 2014, AlHuda Centre of Islamic Banking and Economics (CIBE) to Provide Training, Capacity Building Services to Organization of Islamic Cooperation (OIC) Member Countries

MicroCapital, March 25, 2013, AlHuda CIBE to Host Global Islamic Microfinance Forum, October 6-8, 2013, Dubai, United Arab Emirates

MicroCapital, January 31, 2013, AlHuda Center for Islamic Banking and Economics, VisionFund AzerCredit to Conduct Market Research in Advance of Possible Launch of Islamic Microfinance in Azerbaijan

MicroCapital Universe Profile: AlHuda Center of Islamic Banking and Economics

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