Friday, 31 October 2014

Islamic finance ideal for alleviating poverty

Islamic finance is well-suited for addressing poverty, whether it is used by Muslims or non-Muslims, says the organisers of the 4th Global Islamic Microfinance Forum (GIMF), which kicks off on 1 November in Dubai at the Dusit Thani Hotel.


Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics (CIBE) quoted research which has found that Islamic microfinance has a greater impact on poverty alleviation than general microfinance. Firstly, its focus on investing on assets can boost income levels, and opportunities for business, health and education. Secondly, it is available to the poor.

He further said that murabahah, musharakah, mudarbah, and ijarah are some of the options available, and micro takaful helps to keep those emerging from poverty from backsliding.

The forum runs from 1 to 4 November, 2014 and is jointly organised by AlHuda CIBE and Akhuwat. It is supported by the IRTI - Islamic Development Bank, Azerbaijan Microfinance Association, Association of Microfinance of Tajikistan, Indonesia Microfinance Association, Centre of Microfinance Nepal, Metropolitan Training Academy Turkey, Awqaf South Africa, and KFDWB among others.