(Abu Dhabi)Islamic Microfinance is rapidly gaining
acceptance in Muslim and Non- Muslim countries due to its remarkable
performance in poverty eradication; because of which, this industry is making
quick progress. According to our careful estimate Islamic Microfinance market’s
worth has reached $1 billion. These views were expressed by Muhammad Zubair
Mughal, the Chief Executive Officer of AlHuda Centre of Islamic Banking and
Economics (CIBE) ,while, addressing the International Islamic Finance
conference as a Guest of Honor. This conference was organized in Abu Dhabi-the
capital of United Arab Emirates, in which the experts and researchers of
Islamic Microfinance industry participated from all over the world. The event
was organized on 14th- 16th April, 2013 in Park Hyatt
Hotel- Abu Dhabi by the international research and publication organization-
Emerald in association with Abu Dhabi University.
Muhammad Zubair 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 with the passage of
time Islamic banking, Sukkuk, Takaful and Islamic fund etc have progressed
quickly. While, in next 3 years Islamic microfinance will progress more quickly
relative to other Islamic financial products.
He informed that to further strengthen Islamic microfinance,
AlHuda CIBE has established an international division named “Centre of Excellence
in Islamic Microfinance (CEIMF). Its major objective is to provide the Advisory
& 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 stated that there is immense need of research in
Islamic microfinance industry so that new Islamic microfinance products can be
introduced. As at present, only Murabaha has 80% share of total Islamic
microfinance market. He mentioned that the popularity of Islamic microfinance
is evident from this point that many international universities have requested
AlHuda CEIMF to assist them in incorporating Islamic microfinance as a subject
in their business & finance syllabus.
Muhammad Zubair Mughal said that almost half of the world’s
poverty is prevalent in Muslim countries. One of the reasons of high poverty rate
in Muslim countries is the refusal of Muslims to take interest based loans. Islamic
Microfinance is an essential tool to eradicate poverty from Muslim world otherwise
the attainment of the United Nation’s Millennium Development Goals is
impossible#
