Growth of Malaysia's insurance, takaful sectors seen stable

KUALA LUMPUR: The growth of the insurance and takaful sectors for 2014 will remain stable amid domestic demand, said industry experts.

Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil said strong growth prospects and improved risk management would lead to increased demand for insurance and takaful amongst the public at large.

He said the industry is anticipated to remain encouraging for both conventional and takaful operators through the introduction of new or enhanced and innovative products by insurance takaful companies.

“There is plenty of room for organic growth, given the fact that Malaysia still has low insurance penetration in both the conventional and takaful sectors.       

“In addition, we project a muted earnings growth outlook in certain areas of the local insurance and takaful industry arena that is likely to be impacted by investment de-risking and financial market volatility,” he told Bernama.

Regarding market players, he said the local insurance and takaful players are expected to utilise multiple distribution options available and develop alternative channels whilst strengthening their agency force to establish a solid foothold in the industry.

He said this will be supported by the implementation of strategic marketing and operating systems on top of competitive and cutting-edge products and services offered by respective industry players.

Hassan Kamil said despite the positive outlook, the industry will face diverse changes that were expected from the enforcement of the Risk-Based Capital (RBC)framework in 2014.       

“The RBC implementation might change the landscape of the takaful industry and the expected contribution growth is deemed to accelerate modestly, with fairly robust growth amongst takaful operators outpacing the conventional players,” he said.

Apart from that, both industries have been experiencing an influx of mergers and acquisitions (M&As) resulting in more foreign insurers tapping into the Malaysian insurance market, he said.

Amongst M&As this year were Khazanah Nasional Bhd’s partnership with Canadian-based Sun Life Financial Inc to acquire 98% of CIMB Aviva Assurance Bhd for RM1.8bil, and American International Assurance Bhd’s acquisition of ING’s insurance and takaful business in June 2013.

The industry has seen new players from Canada and the US coming into the Malaysian market, taking over the smaller local players.

“We have witnessed the emergence of financial solid players in the local insurance industry arena as a result of the M&A exercises.       

“The insurance and takaful industry in Malaysia remains encouraging for both life and general insurance and takaful despite moderating economic growth following the slowdown in major advanced countries,” Hassan Kamil said.

The persistent talent shortage, of professionals well versed in both principles, would be one of the main areas that need to be looked at critically in order to remain competitive in the industry, he said.

In addition, he said the rapid development of insurance and takaful industry has made it all the more difficult to recruit the right human capital needed for the various job functions. — Bernama

Source: www.thestar.com.my

ASEAN Countries have big potential for Islamic Finance: Zubair Mughal

(Manila - Philippines) There are multiple opportunities in Association of Southeast Asian Nations (ASEAN) countries to promote Islamic Finance, through which Halal Industry can be flourished rapidly in the region. These views were expressed by Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics (CIBE) during his speech at “First National Halal Forum” in Manila which was organized by Department of Science and Technology, Government of Philippines at a local hotel (Shangri-La Makati) on 29th- 30th October, 2013, in order to grow Halal Industry and Economy on both regional and international level.

During his address to the Forum, he stated that Islamic Finance and Halal Industry are complement to each other. Micro and Small Medium Enterprises (MSME’s) can be energized by utilizing Islamic Finance concept in the region which will be cause to reduce in poverty and ultimate socio-economic prosperity in the ASEAN member Countries. He, presenting an analysis on ASEAN countries (Malaysia, Indonesia, Brunei Darussalam, Loa PDR, Myanmar, Singapore, Thailand and Vietnam), stated that the approximate total population of ASEAN countries is 600 million including the Muslim Population more than 40% (240 million) which is a potential indicator for Islamic Finance growth whereas in Malaysia, Indonesia and Brunei Darussalam already have significant contributions in Islamic Banking, Takaful, Sukuk and Islamic Funds, while Philippines and Thailand are being considered as future potential markets for Islamic Banking and Finance in ASEAN countries.

He explained that Islamic Banking and Finance is the system not a religion which can be utilized by Muslim and Non-Muslims to get absolute benefits from the best services of Islamic Banking and Finance as its best example is the South Africa where Muslim population is less than 2% of the whole population but it has more than 5 Islamic Banks, 13 Islamic Funds and 2 Takaful companies working actively, which are equally famous among Muslims even non-Muslims communities because of their best practices and services. He said that Philippines is an important country of the region with having 100 million populations, approximately, containing Muslim population by more than 7% which bears it out that there are momentous chances for the promotion of Islamic Finance and, apparently, government of Philippines found active in this concern and it will, definitely, energize Islamic Banking and Takaful in result. He also stated that government of Philippines can generate financial resources for national level mega projects by utilizing the concept of Sukuk (Islamic Bonds).

National Halal Forum continued for two days at Manila where experts from different countries of the world participated including Pakistan, Turkey, Malaysia, Indonesia and Thailand #

Inauguration of 100 days Master plan for the Development of Islamic Microfinance industry

Under the umbrella of Islamic microfinance Network (IMFN), a special meeting of Islamic microfinance institutions was held at the capital city of Pakistan, Islamabad, today, presided by Dr. Amjad Saqib,  Executive Director Akhuwat and Chairperson IMFN, in which large number of local and International Islamic microfinance institutions took part. The rationale of this special meeting was to endorse 100 days master plan for the develop,ent of national and international microfinance institutions while uniting the Islamic microfinance institutions at signle platform, resolving the interrelated issues and the barriers.

Chief Executive Officer of Alhuda CIBE & Islamic Finance Network, Mr. Muhammad Zubair Mughal, while expressing the need and characteristics of 100 days plan, said, in analysis of the growing expansion of Islamic microfinance in the world, there is an alarming need to give Islamic microfinance industry a obvious strategy and track so that Islamic microfinance institutions may carry out the mission of poverty diminution in a brand line of action. He stated that Islamic microfinance has become an imperative need to alleviate poverty. In this perspective, Islamic Microfinance Network has designed 100 days master plan. For the advancement of Islamic Microfinance, this plan incorporates the linkages with international microfinance networks, platform for exchange of ideas and dialogues with donors about Islamic microfinance, Shariah guidance to Islamic microfinance industry, Islamic Micro Finance awareness campaign through media and it also includes structuring of standards on Islamic Micro finance.

He further said that if International multi literal organization i.e. World Bank, UNDP, USAID, IFC, GIZ etc. seriously want to eradicate poverty from the world, then they will have to include Islamic microfinance in their preference strategy. Based on current situation, the achievement of Millennium Development Goal ( MGD’s) for poverty alleviation of the United Nations seems impossible and one of the main reasons for this is not including Islamic microfinance in their poverty alleviation strategies. It is estimated that approximately half of world’s poverty reside in Muslim countries and Muslims avoid using conventional microfinance facilities due to interest, which is strictly prohibited in Islam. Hence, there is a need to introduce such microfinance services in Muslim countries which are compatible with their religious, cultural and social values. If this is not done, the world poverty will keep on increase and this can be easily proven by assessing the poverty statistics of last 10 years.

It was also decided during the meeting that AlHuda CIBE will develop guiding principle on Salam, Murabaha and Mudarabah for Islamic Microfinance Network, which will be a source of guidance for institutions related with Islamic microfinance. 100 days master plan will be initiated on 30^th May, 2013 and on its completion a general meeting will be organized to evaluate the achievement of Master plan related targets#

Islamic Microfinance Research Study initiated in Yemen: Zubair Mughal

AlHuda Center of Islamic banking and economics (CIBE) Initiated a Islamic Microfinance research study for Yemen Microfinance Network (YMN) in Yemen. This study will be conducted in the Yemen’s capital Sana’a including Taiz, Adan and Almoukla, so that the Islamic Microfinance products can be examined broadly and further Islamic Microfinance products can be developed for Yemen Microfinance sector with the compatibility of existing structure. Consequently, maximum people utilize the Microfinance facility and the alleviation of poverty would be assured.

Najah Al-Mugahed Managing Director of Yemen Microfinance Network explained the association memorandum of research study that Microfinance market size in Yemen is more than one million but only 80,000 (eighty thousand) people are barely facilitating with the services and products of Microfinance which is approximately 8% of the total Microfinance market size.  Its major reasons are; Non-existence of complete Islamic Microfinance range of products, Domination of Murabaha in Islamic Microfinance sector, increasing rate of Murabaha and percentage of interest in Microfinance are the obstacles in the expansion of Microfinance industry. An appropriate implementation plan would be prepared through this research study to strengthen the Yemen’s Microfinance sector.

Zubair Mughal - Chief Executive Officer AlHuda Center of Islamic Banking and Economics with Mohammad Al-Lai CEO Al-Amal Microfinance Bank - Yemen

Muhammad Saleh Al-Lai Chairman of Yemen Microfinance Network and Executive Director of Alamal Microfinance Bank proclaimed that Yemen’s Islamic Microfinance market is very promising and we want to make it stronger through this study so that Yemen could get a distinguished level through Islamic Microfinance. He further mentioned that this is our privileged that Al-amal Microfinance Bank won the award of Islamic Microfinance Challenge 2010 which was organized by Islamic Development Bank and CGAP (World Bank) which shows a clear understanding of our strong structure of Islamic Microfinance.

Muhammad Zubair Mughal Chief Executive Officer of Alhuda Center Islamic Banking and Economics (CIBE) said that our selection for the research study is a great honor for AlHuda CIBE. He mentioned that they have developed a strong research methodology for this study and used different research instruments e.g surveys, focus group discussion (FGDs), stake holder’s interviews, desk review of MFI’s and meetings with prestigious professionals of Microfinance industry to get primary & secondary information etc which will help to design the ideal products for Yemen Islamic Microfinance sector.

He further mentioned that the share of Islamic Microfinance in Yemen’s Microfinance sector is approximately 90% and remaining 10% are also converting their portfolio into Islamic Microfinance, Yemen Microfinance Industry will be further strengthened with the development of new Islamic Microfinance products, It will increase the outreach of Microfinance sector and help out to eradicate poverty_#

Islamic Microfinance Market size touches $1 billion: Zubair Mughal

(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 14^th- 16^th 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#

Al-Huda CIBE commenced its operation in Uganda for the development of Islamic Banking in East Africa

AlHuda Centre for Islamic Banking and Economics (CIBE) has initiated its operation with the brand name of “AlHuda CIBE Uganda” in East African country, Uganda. Together with Uganda, other countries of East Africa e.g. Sudan, Kenya and Tanzania etc can also be catered, where a huge Muslim population and the demand of Islamic banking already exists. Hence, Islamic Banking and Finance can flourish in those countries promptly. It is also noteworthy that Uganda, whose population is more than 36 million with 14% Muslims, is an important country in East Africa.

On the logo inaugural ceremony of AlHuda CIBE Uganda, Mr. Zubair Mughal- Chief Executive Officer of Al-Huda CIBE anticipated that the future progress of Islamic Banking in Africa, it will not only increase the economic and trade undertakings in the above mentioned countries but also it will be a stimulative cause of national development and growth in GDP. He said that future Islamic banking and finance market consists of what else than Africa and Central Asia. Moreover, Middle East’s Islamic financial institutions have already asserted their interest in Islamic finance in Africa. He said that Islamic finance will help out to alleviate poverty in Africa as Islamic Micro Finance has already been commended in the globe for poverty mitigation and economic and social development. He further said that AlHuda CIBE is commencing its services in South Africa soon to upsurge its incidence in African countries. He added that Islamic Banking is flourishing in African countries aggressively e.g. South Africa, Tanzania, Kenya, Sudan and Tunisia and many more. Many Islamic banks, Takaful companies, Islamic Fund and other Islamic financial institutions are already playing their role in the above mentioned countries successfully. 

Mr. Ahmad Abdullah, the country head of AlHuda CIBE Uganda, has said that the initiation of AlHuda CIBE setup in Uganda enjoys welcomeness and it will improve Islamic Banking in the country. He said that there is an enormous demand of Islamic Banking and Finance in Uganda. Moreover, the central bank of Uganda spreads red carpet for Islamic banking in the country.

It’s worth mentioning that AlHuda CIBE is a prominent brand name in the field of Islamic banking and finance for Advisory, Consultancy & Training. Furthermore, it has been proffering its services in South Asia, Central Asia, Middle East and Europe’s more than 20 countries for the last 8 years.

AlHuda CIBE will conduct a research study for Islamic Microfinance in Azerbaijan

An agreement for the advancement of Islamic microfinance was signed between AlHuda Centre of Islamic Banking and Economics and Vision Fund AzerCredit in a splendid ceremony at the capital of Azerbaijan, Baku. According to the agreement, AlHuda CIBE will conduct market research in different cities of Azerbaijan including Baku to formally initiate Islamic microfinance in Azerbaijan. Mr. Zubair Mughal, Chief Executive Officer, of AlHuda Centre of Islamic Banking and Economics and Mr. Sameer Jaffer Ali, Deputy Chairman Board of Directors, of Vision Fund AzerCredit signed the agreement. 

While addressing the agreement ceremony, Mr. Sameer Jaffer Ali said that this agreement is a milestone for the foundation of Islamic microfinance in Azerbaijan. It will lead to the commencement of micro and SME finances based on Islamic principles. He said that Azerbaijan is a country with 99% Muslim population and its people have been waiting for Islamic finance for quite a long time. This agreement is the first step towards fulfilling their financial needs according to Islamic principles. He said that through research reports we will get the realistic and pragmatic information on Islamic finance’s requirement in Azerbaijan, keeping in view public needs and demands, Vision Fund AzerCredit will introduce Islamic Microfinance products in the Azerbaijan market. 

Muhammad Zubair Mughal, Chief Executive Officer, of AlHuda Centre of Islamic Banking and Economics, while addressing the ceremony said that Azerbaijan will prove to be a good market for Islamic finance products as there is a high public demands for these products and it will further increase in the coming days. He, referring to his research in the different cities of Azerbaijan (Goycey, Sabirabad, Mislli etc.), said that there is very high demand of Islamic finances in rural and semi-urban areas and people were happy and excited when they learned about Islamic microfinance. Moreover, he said that legal and revolutionary amendments are required for the advancement of Islamic finances in Azerbaijan. It’s hoped that in coming days this issue will be sorted and Islamic retail banking will start in an effective manner. Approximately 10 Islamic finance institutions, including one government bank, are providing Islamic finance facilities at corporate level, which is a luminous illustration of Islamic banking and finance in Azerbaijan. 

It should be noted that AzerCredit is the second largest microfinance institution in Azerbaijan, which is providing its services in 18 regions of the country through its network of 56 branches. AlHuda CIBE is a Pakistani organization which is performing Islamic finance research services in difference countries. Particularly for the progress of Islamic microfinance, it established a specialized Department, AlHuda Centre of Excellence in Islamic Microfinance, which is providing its services for the development of Islamic Microfinance Globally.

MFI’s from 27 Countries unified for the development of Islamic Microfinance

Three-day “Global Islamic Microfinance Forum” was organized on 8th-10th December 2012, in Dubai World Trade Centre, UAE. The delegates from UAE, Pakistan, India, UK, Bangladesh, USA, UK Bahrain, Yemen, Azerbaijan, Turkmenistan, Kirghizstan, Mauritius, Kenya, Canada, France, Egypt, Philippine, Uganda, Iraq, Nigeria, Sudan along with delegates from other countries participated in the Forum. 

The salient topics discussed at the conference included bringing together the Islamic Microfinance Institutions on a single platform, role of Islamic Microfinance in poverty alleviation, Shariah and related issues of Islamic Microfinance Institutions and their solutions, Outreach of Al Huda Centre for Excellence in Islamic Microfinance to different countries and dissemination of Qarz-e-Hasna Model of Akhuwat. Representatives from microfinance institutions from 27 countries expressed their intent to unify their efforts for poverty alleviation and social development through Islamic Microfinance. 

Speaking on the successful completion of the forum, Zubair Mughal – Chief Executive Officer AlHuda Centre of Islamic Banking and Economics highlighted that the assemblage of a large number of institutions on the forum of Islamic Microfinance is a clear indication that it is the only viable solution of poverty alleviation around the globe. He urged the World Bank, IDB, USAID, IFC and other international institutions to include Islamic Microfinance in their priority list for social development and poverty eradication; otherwise the achievement of Millennium Development Goals of the United Nations will not be possible. 

While addressing the conference, Dr. Amjad Saqib (Executive Director – Akhuwat) declared that Islamic Microfinance Network will be spread all around the world; a specialist Shariah Supervisory Committee will be setup to cope with the Shariah challenges encountered by Islamic Microfinance Institutions. He further stated that the "3rd Global Islamic Microfinance Forum" will be organized by Al Huda CIBE in November, 2013. 

Al Huda CIBE hosted the said forum in Dubai with the joint effort of Akhuwat, in which internationally well-renowned speakers addressed the participants. The key-note speakers Justice Khalil ur Rehman, Shariah Advisor – AlBaraka Bank Limited, Mr. Kavilash Chawla MD, Nur Global Strategies- U.S.A, Mahesh Jayanarayan, Chairman UMEX Market Group Ltd-UK, Zaigham Mehmood Rizvi,Expert Consultant on Housing and Housing Finance-World Bank - Washington – U.S.A, Dr. Amjad Saqib, Executive Director - Akhuwat –Pakistan, Pervez Nasim Chairmen Ansar Financial and Development Corporation Canada, Syed Hussain Haider Senior Consultant - Govt of Punjab & Akhuwat, Ms. Katrin Fakiri MD (MISFA)–Afghanistan, Gulnora Yakubova, Operation Director, LLCMDO “ARVAND”-Tajikistan, Md. Ariful Islam, International Programmes Muslim Aid–Bangladesh, Humaiyun Saeed Jamshed, Senior Director (Marketing) SAB International FZ,UAE, Raffick Nabee Mohomed Founder & Secretary, Al Baraka Multi-purpose Co-operative Society Ltd,Mauritius, John D. Harwood, Canada, Aziz Ur Rehman Manager Shariah, Mawarid (Finance) UAE, Mohamed El 

Mehdi Zidan, Director Baraka Editions-France. Dr. Tariq Cheema CEO World Congress of Muslim Philanthropists - U.S.A and others presented their research papers on Islamic Microfinance to enrich the knowledge of the participants.

.:: Takaful Consultancy Wing ::.

Islamic insurance (Takaful) is flourishing all around the world alongside Islamic Banking. Its global market size has reached 12 billion USD whereas the number of Islamic Takaful institutions has exceeded to 350. These views were expressed by Muhammad Zubair Mughal, the Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics (CIBE) at the inauguration of AlHuda CIBE's subsidiary "Takaful Consultancy Wing". The inaugurated was held by Justice (r) Khalil Ur Rehman, Shai'ah Advisory of AlBarkah Bank in the ceremony organized at the head office of AlHuda Centre of Islamic Banking and Economics. Captain Jamil Akhtar Khan, Ex Chief Executive Officer, Takaful Pakistan, Abdul Samad, the Shari'ah Advisory Bank of Khyber and other prominent personnel of Islamic banking industry attended the ceremony.

Muhammad Zubair Mughal said that though Takaful industry is prospering in the recent times; however it's also facing certain challenges which include: issues regarding re-Takaful, regulatory challenges, competition and lack of human capital. These issues can be resolved by employing effective strategies and through proper planning. Unfortunately, there is not a single institution in the world which can provide guidance to Takaful industry on the above mentioned issues. Hence, to overcome all these challenges and issues of Takaful industry, AlHuda CIBE established a Takaful Consultancy Wing. Its principle consultant will be Captain Jamil Akhtar Khan who is a renowned and notable personality of Takaful industry. He has the expertise on Takaful regulatory issues, establishment of Takaful companies and other related departments.

Captain Jamil Akhtar Khan said that Takaful Consultancy Wing will be an independent institution which will provide its services to other organizations for the establishment of new Takaful companies, research, advisory, training, re-Takaful, Shariah guidance and other Takaful related matters. It will be a distinguished institution because of its services. Justice (r) Khalil Ur Rehman said that Takaful industry was in need of such institution from a long time, so that services related to Takaful industry can be provided internationally in an efficacious way. He also said that Islamic banking and Takaful are interdependent; hence in order to strength the Islamic banking industry, Takaful industry has to be strengthened as well. He was confident that AlHuda will play a vital role in this regard.

.:: Takaful Consultancy Wing ::.

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Mr. Tariq Cheema, President of World Congress of Muslim Philanthropists (WCMP) is inaugurating the logo of Forum in Pakistan, whereas Mr. Amjad Saqib - CEO of Akhuwat, Mr. Shahid Iqbal – President of Naymet Islamic Microfinance and Mr. Zubair Mughal – CEO of AlHuda CIBE also Present in the Picture.

Mr. Tariq Cheema, President of World Congress of Muslim Philanthropists (WCMP) is inaugurating the logo of Forum in Pakistan, whereas Mr. Amjad Saqib - CEO of Akhuwat, Mr. Shahid Iqbal – President of Naymet Islamic Microfinance and Mr. Zubair Mughal – CEO of AlHuda CIBE also Present in the Picture. http://www.facebook.com/photo.php?fbid=521806774515131&set=a.119358161426663.15787.100000574393931&type=1

Ms. Najah Almugahed, Managing Director of Yemen Microfinance Network is cutting the ribbon to inaugurate the logo of Global Islamic Microfinance Forum in Sana’a, Yemen

Ms. Najah Almugahed, Managing Director of Yemen Microfinance Network is cutting the ribbon to inaugurate the logo of Global Islamic Microfinance Forum in Sana’a, Yemen http://www.facebook.com/photo.php?fbid=521806467848495&set=a.119358161426663.15787.100000574393931&type=1

Enjoying a happy weekend with my daughter

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Global Islamic Microfinance Forum, 8th December, 12 at Dubai.

Global Islamic Microfinance Forum

About AlHuda Centre of Islamic Banking and Economics

AlHuda Centre of Islamic Banking and Economics is a globally recognized name working in the areas of Islamic banking & finance and microfinance in order to provide specialized Trainings, Advisory and Research for the last seven years with an aim to serve the community by providing state-of-the-art Advisory, Consultancy and Education to masses through various well recognized modes i.e. Distance learning programs, Trainings Workshops, Awareness Programs and Islamic Microfinance Products Development. Our specialized and research oriented publications are another source of knowledge delivery. For further details, please visit: www.alhudacibe.com

About Akhuwat

Akhuwat is dedicated to improve the lives of the poor, especially those who are financially abused, abandoned and disregarded by society. It was established with the objective of providing interest free microfinance to the poor so as to enhance their standard of living. Drawing on principles of social justice and brotherhood, Akhuwat strives to alleviate poverty by creating a system based on mutual support in the society. Akhuwat’s philosophy is based on the principle of Qarze Hasn, helping someone in need with an interest-free loan, has been favored over charity. From a first loan of Rs. 10,000, Akhuwat’s total disbursements have now become round about Rs. 2 billion in just eleven years. For further details, please visit: www.akhuwat.org.pk

About International Conference on Islamic Microfinance, 2011

AlHuda CIBE organized an International Conference on Islamic Microfinance on 13^th of June, 2011 at Faisal Mosque, Islamabad. The conference was a great success. Vision of the conference was to create a value in the line of Islamic microfinance for the benefit of human kind and motive was to create awareness in the masses and International Market through this event.

A good number of valued professionals attended the event and renowned speakers shared their valuable knowledge and experience. Some of the well-known speakers of the conference were Justice Khalil ur Rehman - Shariah Advisor - AlBarka Bank Pakistan, Mr. Jasim Sheikh- Project Manager – IMED, Islamic Relief, Mr. Khobaib A Vahedy - Country Director, Muslim Aid – Pakistan, Mr. Amjad Arbab - Chief Executive Officer, Shore Bank International, Mrs. Farida Toor Tariq - Chief Executive Officer, CWCD etc.

The Media partners in this event were True Banking, Takaful (Islamic Insurance) Blog, Micro Capital, Business Islamica, The Islamic Globe, Microfinance Bulletin, Microfinance Focus, International Alternative Investment Review, TV One Global, Microfinance Africa, Noozz.com Bringing Business Closer, Microfinance Hub, ecPluse The Pulse of Economies and Shirkah whereas the sponsors and supporters were Akhuwat, Islamic Relief, Halal Research Council, Islamic Microfinance Network, Helping Hand for Relief and Development, Awqaf SA Empowering Communities, Muslim Aid Serving Humanity, Micro Enterprise Development, The Scottish Government, Pakistan Microfinance Network, Khwendo Kor, Naymet for Everyone.

In continuity of the last year’s conference, AlHuda-CIBE is going to arrange a 2^nd International Conference on Islamic Microfinance entitled as “Global Islamic Microfinance Forum” scheduled to be held on 11^th & 12^th November at Dubai, U.A.E.

About Islamic Microfinance

Microfinance has emerged as an important instrument to help a large number of “Unbankable” members of society, as a tool to help reduce poverty and encourage economic growth in neglected parts of the world. However, time has proved that conventional microfinance is not fully reaching the poorest of the poor.

During the latest research on Microfinance sector, it is evaluated that Islamic financial system provides the best solutions for Poverty alleviation and Social sustainability, it is not only providing opportunity to utilize a sustainable system but also offers good rate of return & ideal performance compare to conventional microfinance system.

Islamic Microfinance is a sub-set of Islamic Economic & Financial System. The demand for Shari’ah complaints financial products and services is increasing with the rapid progress of Islamic finance industry. It is widely accepted that micro finance is the most effective tool for alleviation of poverty and uplift the living standards of poor through real economic activities in society, but as per market studies conventional micro financial system could not serve the potentially as should expectation due to the few deficiencies in the system. So, it is an immediate need to develop substitute financial products for microfinance institutions.

Need Assessment of Islamic Microfinance

We are in great need of Islamic microfinance to be implied due to the failure of microfinance structure all over the world and its most unprecedented example is India where microfinance companies had failed after a biggest clampdown due to exorbitant interest rates. Islamic microfinance has traits to provide a parallel support to the poorest of the poor and its imminent qualities leaves no room for structural devastation as emphasizes ethical, moral & social factors to promote equality and fairness for the good of the society.

It is estimated that 3 billion people are living below the poverty line around the world among them approximately 44% conventional microfinance clients reside in Muslim countries. Almost one-half of the 56 IDB member countries in Asia and Africa are classed as United Nations Least Developed Countries (LDCs), so there is an immediate need to start Islamic Microfinance in Muslim Majority countries for financial inclusion. Right now, there are about 250 Islamic Microfinance Institution, working globally in 32 countries. Islamic Microfinance have proven track record that it deals with long lasting & complete solutions for Sustainability.

Is Islamic Microfinance only for Muslims?

It is a misconception that only Muslims can opt. Islamic Microfinance but non Muslims can also take the edge from Islamic microfinance for social sustainability worldwide. It is a best alternative to microfinance and a system which has to be extracted from the golden beam of Islam that covers all the qualities of micro financing by providing alternative solution. Non Muslims can also utilize this system to lessen poverty. In not only Muslim communities but also in the non Muslim societies, conventional interest based microfinance has being been rejected, principally of its non-compliance with the Islamic principles and practically on the issue of paying of interest or Riba, which is forbidden under the Shari’ah.  This has somehow caused failure of agencies’ initiatives to overcome poverty and promote economic development through micro financing.

Islamic Microfinance is a system not a Religion; it can be utilized & operated by both Muslims and Non-Muslim Communities for Poverty Alleviation and Social & Economic Development. Islamic Microfinance is very much compatible with the all the models which are being utilized in conventional microfinance like Grameen Model, Village Bank Model, Credit Union Model, Cooperative Model and Self-Help Group etc.

Key Objectives of this Forum

The vision of this Islamic Microfinance Global Forum is to create a value in the line of Islamic microfinance for the benefit of human kind and motive to create awareness in the masses and International Market through this event.

Islamic Microfinance Global Forum aims at evaluating the state-of-the-art knowledge in the field of Islamic Microfinance. Over the course of this forum, participants will have the opportunity to be trained from learned Professionals, Experts, and Panelists and to learn many things by their experiences through sessions, speeches and presentations designed under different tracks within the specific subject. The core objectives of this Forum are:

• Promoting awareness of Islamic Microfinance among the masses, government and Non Governmental Sectors and Multilateral Donor agencies.
• Promote Islamic Microfinance Model which is compatible with the models being used in Conventional Microfinance.
• Create a more favorable environment for Islamic Microfinance at national and international level
• To promote Islamic microfinance as a social phenomenon instead of business oriented model
• Gain global practices on Islamic microfinance through learned national and international scholars and experts
• To recognize Islamic Microfinance as sustainable system worldwide
• Awareness of Islamic Microfinance system as sustainable and viable solution for poverty alleviation

§  Buildup the recognition of Islamic Microfinance system, for  the encouragement of practitioners/microfinance institutions/ donor agencies/ Government institutions

§  To provide a Platform to start a dialogue with multilateral donor organizations and Microfinance Network

§  Providing innovative knowledge of the various aspects of Islamic microfinance

§  To provide the opportunities for collaborations/partnerships with donor agencies, Islamic banks and Islamic Microfinance Institutions/Networks. 

§  To ensure continued growth of Islamic Microfinance Institutes

Who should attend this Forum?

§  Microfinance Institutions & Banks

§  Local and International Donor’s Agencies

§  Rural Support Programs

§  Islamic and conventional Banks

§  Insurance and Takaful Companies

§  SMEs & Corporative Societies

§  NGOs and NPOs

§  Microfinance Professionals and Experts

§  Academia

§  Philanthropist and Investors

§  Regulators and Govt. Officials

§  Shari’ah Scholars and Experts

Promotional and Marketing Opportunities

No Company can afford to miss this Great Interactive Marketing Opportunity!

Islamic Microfinance Global Forum is practice driven but interesting for senior level executives event, designed to explore and share strategies within Islamic microfinance industry. This platform is expected to provide a healthy liaison and calls for tremendous marketing and promotion opportunities for the following business and social segments:

§     Microfinance Institutions & Banks

§     Local and International Donor’s Agencies

§     NGOs and NPOs

§     Islamic and Conventional Banks

§     IT Companies

§     Rating Agencies

§     Investment Banks

§     Local and Multinational Companies

§     REITs

§     Financial Solutions Providers.

Islamic Microfinance Workshop www.alhudacibe.com/yemen2012

Islamic Microfinance Workshop www.alhudacibe.com/yemen2012 http://www.facebook.com/photo.php?fbid=508725462489929&set=a.119358161426663.15787.100000574393931&type=1

Yemen will Host an International Workshop on Islamic Microfinance

Islamic Microfinance is getting appreciation by the whole world for alleviation of poverty and Muslim and non-Muslim Countries are utilizing it. Microfinance Institutions in Arab Countries are also providing Microfinance to Muslims which is in accordance with Islamic standards in order to get poor out of obscurity of poverty. Amongst these Arab Countries, Yemen is at the top of the list with other countries like Iraq, Syria, Jordan and Egypt.

Due to the escalating popularity of Islamic Microfinance in Arab countries with the intention to increase the reach of Microfinance Institutions, AlHuda Centre of Islamic Banking and Finance and Yemen Microfinance Network is going to arrange 2 days training workshop on Islamic Microfinance on 16^th & 17^th September, 2012 to be held in the Capital City of Yemen - Sana’a, in which different topics like the proper utilization of Islamic Microfinance for alleviation of poverty in poor countries, Islamic Microfinance Products and their structure, Shari’ah principles of Microfinance and MicroTakaful would be discussed.

The Chairman of Yemen Microfinance Network, Mr. Mohammed Al Lai has declared the arrangement of this two days international workshop on Islamic Microfinance, a good step for the Microfinance sector. He said that Islamic Microfinance is rapidly growing in Yemen and the workshop like this will provide more awareness about it.

Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics, Mr. Muhammad Zubair Mughal has said that AlHuda has established a separate department for the promotion of Islamic Microfinance, named as “Centre of Excellence in Islamic Microfinance” so that awareness, consultancy and training could be provided to the Microfinance Institutions and in this regard, during this year, workshops will be arranged in Yemen, Azerbaijan, Nigeria, Kazakhstan, Indonesia and Niger. He further said that the purpose of this training in Yemen is to make Arab countries aware of the importance and benefits of Islamic Microfinance which is in accordance with the religious beliefs of Arab Countries because in Arab Countries, people avoid conventional microfinance due to the factor of interest and remain stuck in poverty. So, Islamic Microfinance is very much needed to alleviate poverty in Arab countries. It should be noted that in spite of abundant oil and natural resources in Arab regions, some Arab countries are having poverty in them like 23% people in Iraq, 18% in Iran, 34.8% in Yemen, 13.3% in Jordan, 12.5% in UAE, 28% in Lebanon and 11.9% in Syria are living under the poverty line.

The Pioneer Islamic Microfinance Magazine will be Launched in September, 2012

Centre of Excellence in Islamic Micro finance - AlHuda CIBE,  is a well established name in the Islamic Banking and Finance market, working for Advisory, Education, Islamic Financial products development & Awareness. AlHuda CIBE is going to add one more dimension in its portfolio by launching the first ever magazine of its kind on Islamic Microfinance News.

Research shows that almost one-half of the 56 IDB member countries in Asia and Africa are classed as United Nations Least Developed Countries (LDCs) and approximately 44% conventional microfinance clients worldwide reside in Muslim countries. So, with the aim of spreading timely and accurate information regarding Islamic microfinance, “AlHuda Islamic Microfinance News” would create a more favorable environment for Islamic Microfinance at national and international level and would help in reducing poverty of the world.

In this regard, we request you to share your suggestions/feedback, views, related articles, scholarly ideas or any message with us. Your valuable contribution is highly needed in order to make our effort a big success.

You can write us at : info@alhudacibe.com , or Visit: www.alhudacibe.com/imhd  

AlHuda CIBE introduces Free Advisory services during the Holy Month of Ramadan

AlHuda Centre of Islamic Banking & Economics (CIBE ) is a well established name in the Islamic Banking and Finance working for Advisory, Education, Islamic Financial products development & Awareness.
Muslims around the world are welcoming the arrival of the holiest month of the Islamic year. In this Holy month, Alhuda Centre of Islamic Banking and Finance offers the following complementary services to masses to reap the full benefit of this blessed month:

- Free Shariah Advice and Consultancy

Alhuda has established an expert panel of Shariah Scholars & Finance professional for giving free advisory services to businessmen/General Public for removing the day to day problems and issues related to:
- Zakah & Usher Calculation
- Religious issues related to business, financial, banking and Halal Food etc.
- Other religious matters & Free literature service about Islamic Finance
The imminent Shariah experts would receive your live calls from 9:00 am to 12:00 (noon) till end of Ramadan. So do not hesitate to contact and get your problems resolved.
AlHuda CIBE also offers 25% discount on its distance learning programs on Islamic banking and finance during the Holy month with the theme to spread the blessings of Ramadan by bringing individuals in Shariah compliant and true profession to earn their livelihood.
Get Registered and Reap the Benefits of the Holy Month! For more information please visit: www.alhudacibe.com/dlp