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Press release

Islamic Microfinance Market size touches $1 billion

Islamic Microfinance industry is rapidly progressing due to its superior performance for poverty

alleviation

17th April, 13

(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 markets 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 microfinances

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 sothat 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.

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Muhammad Zubair Mughal said that almost half of the worlds 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 Nations Millennium Development Goals is impossible#