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CENTRE OF ISLAMIC BANKING

& ECONOMICS

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, 2013

(Abu Dhabi) Islamic Microfinance is rapidly gaining acceptance in Muslim and No - Muslim countries due to

its remarkable performance in poverty eradication; becauseof 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

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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, Sukuk, 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 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

Head Office: 192- Ahmad Block, Ph: +92-42-35913096-8 E-mail: info@alhudacibe.com

New Garden TownLahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com