22 April 2013
Islamic microfinance is rapidly gaining acceptance in Muslim and non-Muslim countries due to its remarkable performance in poverty eradication.
According to estimates, Islamic microfinance market's worth has reached $1 billion, Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics (CIBE), said in an address at the three-day International Islamic Finance conference held recently at Park Hyatt Hotel-Abu Dhabi.
The event was organized by the international research and publication organization Emerald, in association with Abu Dhabi University.
Mughal said that currently more than 300 Islamic microfinance institutions are offering their services to 1.6 million clients in almost 32 countries. Due to Islamic microfinance's significant role in reducing poverty, international donor institutions and multilateral organizations like USAID, IDB, ADB, IFAD, UNDP, World Bank and IFC, etc. have clearly explained their policies in different countries to further strengthen Islamic microfinance, which will ensure the quick advancement of Islamic microfinance in near future.
He added that if we take an overview of last 10 years of Islamic finance industry, it can be observed that Islamic banking, sukuk, takaful and other Islamic funds have progressed quickly. While, in next 3 years Islamic microfinance will progress more quickly relative to other Islamic financial products.
To further strengthen Islamic microfinance, AlHuda CIBE has established an international division named "Centre of Excellence in Islamic Microfinance (CEIMF), he said. Its major objective is to provide the advisory and consultancy to microfinance institutions so that conventional microfinance institutions can be transformed into Islamic microfinance institution and along with this new Islamic microfinance Institutes can be established. In this regard, Centre of Excellence in Islamic Microfinance is offering its services in Azerbaijan, Yemen, Afghanistan, Pakistan, Mauritius, Indonesia, Kazakhstan and other countries.
He further said that there is immense need of research in Islamic microfinance industry so that new Islamic microfinance products can be introduced.
At present, only murabaha has 80 percent share of total Islamic microfinance market.
Islamic microfinance is rapidly gaining acceptance in Muslim and non-Muslim countries due to its remarkable performance in poverty eradication.
According to estimates, Islamic microfinance market's worth has reached $1 billion, Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics (CIBE), said in an address at the three-day International Islamic Finance conference held recently at Park Hyatt Hotel-Abu Dhabi.
The event was organized by the international research and publication organization Emerald, in association with Abu Dhabi University.
Mughal said that currently more than 300 Islamic microfinance institutions are offering their services to 1.6 million clients in almost 32 countries. Due to Islamic microfinance's significant role in reducing poverty, international donor institutions and multilateral organizations like USAID, IDB, ADB, IFAD, UNDP, World Bank and IFC, etc. have clearly explained their policies in different countries to further strengthen Islamic microfinance, which will ensure the quick advancement of Islamic microfinance in near future.
He added that if we take an overview of last 10 years of Islamic finance industry, it can be observed that Islamic banking, sukuk, takaful and other Islamic funds have progressed quickly. While, in next 3 years Islamic microfinance will progress more quickly relative to other Islamic financial products.
To further strengthen Islamic microfinance, AlHuda CIBE has established an international division named "Centre of Excellence in Islamic Microfinance (CEIMF), he said. Its major objective is to provide the advisory and consultancy to microfinance institutions so that conventional microfinance institutions can be transformed into Islamic microfinance institution and along with this new Islamic microfinance Institutes can be established. In this regard, Centre of Excellence in Islamic Microfinance is offering its services in Azerbaijan, Yemen, Afghanistan, Pakistan, Mauritius, Indonesia, Kazakhstan and other countries.
He further said that there is immense need of research in Islamic microfinance industry so that new Islamic microfinance products can be introduced.
At present, only murabaha has 80 percent share of total Islamic microfinance market.
© The Saudi Gazette 2013
