Islamic finance wrap: IFC provides Murabaha facility worth $50m to empower women entrepreneurs
Here's a roundup of key developments across the Islamic finance ecosystem during the month of December
Editor's note: MoU is the word. Clearly. Strategic partnerships across entities for cohesion, growth and momentum are gaining ground. The International Finance Corporation struck a partnership with Al Baraka Bank to support MSMEs, especially women-owned businesses.
Pakistan's Securities and Exchange Commission inked a deal to establish an Islamic finance research centre, while UAE's AlHuda CIBE and Bahrain's AAOIFI signed a preliminary agreement to promote Islamic finance practices. Abu Dhabi Islamic Bank too signed a MoU with a mobility tech company.
Company News
Pakistan
SECP to establish an Islamic finance research, development centre
The Securities and Exchange Commission of Pakistan (SECP) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) have collaboratively established a Joint Research and Development Centre (JRDC) to promote growth in Islamic finance.
The Memorandum of Understanding (MoU) was signed by Mujtaba Ahmad Lodhi, Commissioner (SECP), and Ebrahim Bin Khalifa Al Khalifa, Chairman of the AAOIFI Board of Trustees, during the 8th AAOIFI-IsDB Conference in Bahrain. (Mettis Global)
UAE
DMCC, Aafaq Islamic Finance conclude digital collaboration
DMCC, free zone and trade and enterprise hub for commodities, has concluded a groundbreaking digital-led project with Aafaq Islamic Finance.
Aafaq, a provider of Sharia-compliant financial products and services, utilized the DMCC Tradeflow platform to enhance efficiency across its portfolio. (Dubai Media Office)
Trade Developments
UAE
AlHuda CIBE and AAOIFI signed MoU to promote Islamic banking and finance
AlHuda CIBE in Dubai, UAE, and The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Bahrain have signed a Memorandum of Understanding (MOU).
This strategic collaboration aims to enhance global Islamic finance practices by providing capacity-building initiatives for professionals, students, and practitioners. (Zawya)
Bahrain
BIBF and IsDBI agree to collaborate on Islamic finance capacity development
The Islamic Development Bank Institute (IsDBI) and the Bahrain Institute of Banking and Finance (BIBF), a training and development provider in the region, have entered into a strategic partnership agreement.
IsDBI is the knowledge hub of the IsDB Group.
The agreement, signed at the AAOIFI-IsDB Islamic Banking and Finance Conference in Bahrain, marks the commencement of a strategic alliance. (IsDB)
Investment
Egypt
IFC provides $50m Murabaha finance to Al Baraka Bank to support SMEs, women entrepreneurs in Egypt
The International Finance Corporation (IFC) has revealed a partnership with Al Baraka Bank Egypt aimed at expanding access to finance for micro-, small-, and medium-sized enterprises (MSMEs) in Egypt, with a focus on women-owned businesses.
This collaboration seeks to address the challenges faced by MSMEs in obtaining finance, considering an estimated lending gap of $71 billion. (Zawya)
ESG Developments
Qatar
Qatar Ministry launches app to manage Zakat
The Ministry of Endowments (Awqaf) and Islamic Affairs, through its Department of Zakat Affairs, has introduced a mobile app for Android and iOS devices aimed at facilitating Zakat contributors and recipients.
Aligned with the ministry's commitment to staying abreast of the latest developments, the app offers electronic services and crucial information. (Gulf Times)
UAE
CBUAE, Shari’ah Authority foster sustainable Islamic finance
The Central Bank of the United Arab Emirates (CBUAE) and the Higher Shari’ah Authority have jointly released guiding principles on sustainable Islamic finance.
These guidelines are designed to provide incentives and encouragement for Islamic financial institutions to enhance sustainability in their practices and processes. (Sharjah 24)
UAE
Abu Dhabi Islamic Bank ties up with mobility tech firm
NWTN Inc, an eco-conscious mobility technology company, has announced a collaboration with Abu Dhabi Islamic Bank PJSC (ADIB) to enhance the electric vehicle market in the UAE and beyond.
The Memorandum of Understanding (MOU) outlines a one-year collaboration with automatic renewals, offering exclusive auto financing options at a competitive rate to customers purchasing Rabdan vehicles, NWTN's premium mobility brand. (Zawya)
