CENTRE OF ISLAMIC

BANKING & ECONOMICS

Head Office: 160 – B Ahmed Block, Ph: +92-42-35913096-8 E-mail: info@alhudacibe.com New Garden Town Lahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com

Press Release Islamic Microfinance is an effective tool of Financial Inclusion

4th

Global Islamic Microfinance Forum Logo Inaugurated in New York – USA

14-10-2014

(New York) Islamic finance is the best suited system for poverty alleviation that can be utilized both by

Muslims and non Muslims as an system to cut down poverty dilemma from all over the world, it can also be

utilized as an effective tool of financial inclusion as Millions of Muslims are financially excluded due to

religious reasons, this was stated by Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of

Islamic Banking and Economics (CIBE) today at a local hotel (Sofitel Hotel) in New York in logo inauguration

ceremony of “4th

Global Islamic Microfinance Forum” (GIMF), which will be held on November 01-04 2014

in Dubai – UAE, jointly organized by AlHuda CIBE and Akhuwat. Delegates from Islamic banking, financial

industry, Islamic microfinance, and multilateral organizations and from more than 30 countries will be

participation in this mega event.

CENTRE OF ISLAMIC

BANKING & ECONOMICS

Head Office: 160 – B Ahmed Block, Ph: +92-42-35913096-8 E-mail: info@alhudacibe.com New Garden Town Lahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com

He further said that Islamic microfinance has more characteristics than conventional microfinance and for this

important factor it has gained popularity internationally. In recent studies, it is evident that the impact of Islamic

microfinance in poverty alleviation is far more than general microfinance. There are two prominent reasons of

gaining the success. One is its focus on investing on the assets to boost up the income level and business

opportunities that can be very impactful in elevating the living standards of the poor, to improve the business

capacity, jobs availability, education and health opportunities. The other important element is the availability of

Islamic microfinance to all the levels of the poor. However, for the poorest of the poor, the options of Zakat, Ushr,

and donation and for the chronic poor, the options of Qard e Hassna is available. Otherwise, for the ordinary level

of poverty, Murabaha, Musharaka, Mudarba, Ijara are available with the option of ‘Salam’ for the poor villagers

that is connected with Islamic agriculture. On the other hand, when the poor people are elevated from the basic

level of poverty, Micro Takaful is available to sustain them from going back to the down level. On the other hand,

in general or conventional microfinance, there are unsuccessful efforts made for poverty alleviation from all levels

of the poor through interest based microfinance. He added that the process of poverty alleviation is a scientific and

complicated process. Unless the level of the poverty is measured, we cannot pick the right products to alleviate it.

Due to this factor in conventional microfinance, it is hard to uphill the poor from his own level of poverty.

He told that the purpose of this forum is to unite conventional microfinance and Islamic microfinance under one

roof to chalk down the best strategy of poverty reduction from all over the world. There is no religion of poverty

but Islamic microfinance is the best way forward to alleviate it from the masses.

It is to be noted that this forum is organized from 01-04 November, 2014 with the joint association of international

organizations i.e. 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, KFDWB and others. For further details of the forum, please visit:

www.alhudacibe.com/gimf2014