Home About Kuna Advertise Contact Us Kuna's Bureaus Services Term Of Use
Register Login
facebook Twitter Youtube rss
Contemporary Childhood Conf. kicks off      UAE military plane crashes in Egypt, four airmen killed - armed forces      Egypt ready to support Iraq's reconciliationin, fight against ISIL - FM      Egypt calls Iraq to restore relations with neighbors      UNSC renews Syrian humanitarian resolution      Kuwait, Somalia mull closer ties      US dollar stable against KD at 0.291, euro up to KD 0.364      Kuwait Municipality damages two tons of rotten food      Kuwait keen on supporting Arab efforts worldwide -- Al-Dehani
  Economics
Islamic microfinance curbs poverty - KFH report
05/09/2012   |   05:05 PM | Kuwait News
تصغير الخطالشكل الأساسيتكبير الخط
KUWAIT, Sept 5 (KUNA) -- Islamic Microfinance is a viable means to curb poverty, a specialized report by Kuwait Finance House (KFH) said Wednesday Addressing poverty continues to be one of the greatest challenges faced by governments around the world today. In Islam, a person is considered poor if he/she does not have sufficient material wealth in hand to meet his/her basic needs, i.e. to protect one's religion, physical self and family, seek knowledge or education, and accumulate some wealth.
Islamic microfinance is indeed unique, as it is a mixture of economic, social and religious principles: economic, social and religious, the report noted, pointing out that there are two types of resources that can be mobilized for Islamic microfinance purposes, external resources such as Zakat and charity and internal resources like deposits and equity.
The first Islamic version of the microfinance model was developed in Egypt in 1963. As overall Islamic finance has become more developed, parties have revisited microfinance as a new asset class, which can raise the levels of societies while providing itself to be a profitable business model for Islamic financial institutions, the report said.
Institutions such as the Islamic Development Bank (IDB) and the World Bank have also allocated resources to study the viability of Islamic microfinance. IDB has recently taken further steps to fund certain Islamic Microfinance Institutions (IMFIs). In 2009, the Islamic Microfinance Network (IMFN) was established to develop and promote the Islamic microfinance industry, it added.
In recent years, driven by the demand for Islamic microfinance, some MFIs have started to offer Islamic microfinance products to low-income Muslim clients. In Afghanistan, for example, strong demand for Shariah-compliant microfinance has caused the Foundation for International Community Assistance to switch its conventional products to non-interest bearing Murabahah Islamic financing.
However, Islamic microfinance is still in its nascent stage and currently forms part of an informal economy. A 2007 global survey on Islamic microfinance undertaken by Consultative Group to Assist the Poor (CGAP) shows that Islamic microfinance has a total estimated global outreach of only 380, 000 customers and accounts for only around 0.005% of total microfinance outreach. Currently, there are more than 200 IMFIs around the world.
The slow growth in Islamic microfinance is mainly due to the fact that such facility was usually provided by specialized institutions such as NGOs, and not by Islamic banks, despite the many elements of microfinance which can be considered consistent with the broader objectives of Islamic banking, the report concluded. (end) hb KUNA 051705 Sep 12NNNN
 Print
  Email
 Save
Share
Share
Honoring Kuwait 2014


KUNA publishes a book titled (His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah: A Humanitarian Leader) to commemorate the UN honoring of Kuwait's leader

kuna magazien


Most Read Most Emailed  
1.   ISIL militants attack Syrian forces near Deir Ezzor airport
2.   Khartoum demands immediate steps from Juba on rebels
3.   Malaysia summons US ambassador over anti-sedition law
4.   Obama, Saudi official discuss ISIL, Syria, Yemen
5.   Syrian troops suffer 50 fatalities in Idlib
6.   UN has honored Kuwait due to long record of humanitarian action -- diplomat
    Photo Gallery

Minister of Commerce and Industry Dr. Abdulmohsen Al-Madaj

His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah attends Crown Prince Football Cup final

Kuwait Stock Exchange (KSE)

National Assembly Speaker Marzouq Ali Al-Ghanim receives Speaker of the National Assembly of Pakistan Sardar Ayaz Sadiq

Sheikh Duaij Al-Fahad Al-Sabah, the head of the club's drag race committee

Chairperson of the Trustees' Board, Sheikha Aida Salem Al-Ali Al-Sabah

Ambassador in Doha Metaeb Al-Mutotah

Assistant Undersecretary of the Information Ministry for Media Planning and Knowledge Development Mohammad Al-Awwash

KRCS delivers more aid to Syrian refugees

Kuwait celebrates 100th anniversary of first National Flag

Head of the KAC's Media and Public Relations Department Fayez Al-Enezi

His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah
Publications

WEATHER
PRAYER
CURRENCIES
KUWAIT AIRPORT
    Calendar
About KUNA KUNA SERVICES USEFUL LINKS KUNA ARCHIVE KUNA PUBLICATIONS
Home
About Kuna
Advertise
Contact Us
Kuna's Bureaus
Services
Term Of Use
Read The Whole Newscast
Pictures (during the week)
FTP Service
KUNA training center
KUNA Reader
SMS Services
الكويت فى ذاكرة الأيام
Job Application
Careers
Arab News Agencies
International News Agencies
Governmental Institutes
Banks in Kuwait
News Paper
Local Companies
other useful links
Prayer Times
News Archive
Other News Services
Today In Kuwait's History
Events
Training Sessions
Videos
All KUNA right are reserved © 2012. This site is designed and published by IDS