Islamic microfinance industry surpasses $60bn mark in value - Shariah FinTech service, can help get goal of poverty alleviation: Zubair Mughal.

The global Islamic microfinance industry has reached a significant milestone, surpassing $60 billion in value within the $3.8 trillion Islamic finance landscape. This achievement highlights the growing recognition of Islamic microfinance as a potent tool for poverty alleviation. The industry's potential to bridge financial gaps while adhering to Shariah principles positions it as a viable alternative for fostering financial inclusion and tackling global poverty challenges.

Despite ongoing efforts and UN Millennium Goals, global poverty eradication remains unachieved. This challenge is particular in Muslim majority countries, where conventional financial structures often hinder progress due to their reliance on prohibited elements like Riba (interest). Financial exclusion due to these factors underscores the necessity for alternative financial solutions that are Shariah-compliant.

Addressing this need head-on, AlHuda CIBE, a renowned Islamic finance consultancy and advisory firm since 2005, has established the Center of Excellence for Islamic Microfinance. This initiative aims to introduce Islamic microfinance as a powerful poverty alleviation tool in diverse countries around the world. AlHuda CIBE's impactful projects have earned them a reputation for collaborating with esteemed international organizations, including the United Nations (UN), World Bank (WB), IFC, Asian Development Bank (ADB), USAID, GIZ, and Islamic Development Bank (IsDB). The firm has also extended its services to various central banks, rural development initiatives in different countries, agricultural development projects, and numerous other developmental ministries at the micro-level. Over its operational history, the consultancy firm has successfully executed more than 45 diverse projects through its Center of Excellence, which is composed of dynamic and dedicated team members operating under the guidance of vigilant management.

Mr. Muhammad Zubair, CEO of AlHuda CIBE, emphasised the crucial role Islamic microfinance plays in tackling global poverty. Despite its promising growth, the industry represents just 2% of the total Islamic finance landscape. To truly uplift populations living under the poverty line, he emphasized the need for exponential contributions.

Mr. Zubair called for the rapid introduction of Shariah (Islamic) FinTech services, a revolutionary concept combining Islamic finance, microfinance...