The Islamic Corporation for the Development of the Private Sector (ICD) Signs Memorandum of Understanding with AlHuda Center of Islamic Banking and Economics (CIBE) for the Development of Islamic Microfinance Industry

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Under the cooperation framework, both parties are determined to collaborate in the implementation of the Model at the field level with the help of potential partners, in particular the Islamic microfinance organizations

JEDDAH, Kingdom of Saudi Arabia: The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank Group (IDBG), signed a Memorandum of Understanding (MoU) with AlHuda Center of Islamic Banking and Economics (CIBE), to implement “Biniog Sathi Banking Model”, which is a new initiative of ICD.

“Biniog Sathi” – a Bangla word that means Friend in Investment, is a new generation banking model that incorporates the concept of Zakat and Charity with the existing banking model and offers a solution to the problem of credit default for both the beneficiaries and the banks. This model is based on Islamic Finance principles and it raises the competitiveness of Islamic Banking model to a new level of superiority. This model is a blessing for microfinance banks and micro beneficiaries.

Under the cooperation framework, both parties are determined to collaborate in the implementation of the Model at the field level with the help of potential partners, in particular the Islamic microfinance organizations, and have agreed to work together to implement the pilot phase of the model in different countries through various Islamic Microfinance Programmes.

On this occasion, Mr. Khaled Al-Aboodi, Chief Executive Officer of ICD, stated: “The aim of the MoU is to expand the financial products and services offered to the private sector investors in common member countries. At this moment, the model is in theoretical stage and it needs pilot testing in the field level for its implementation. Once done, it will nurture the Islamic finance industry with a new service”.

Mr. Zubair Mughal, Chief Executive Officer, AlHuda CIBE, stated that Islamic Microfinance is a recognized tool of financial inclusion, social development and poverty alleviation, and the ICD’s new initiative “Biniog Sathi” is an eminent value addition in Islamic Microfinance arena which will connect Zakat and Charity models with Islamic Banking and Finance industry to achieve the optimum goal of poverty alleviation and economic development. He also appreciated different ICD initiatives for the development of Islamic Banking and Finance industry around the globe.

About the Islamic Corporation for the Development of the Private Sector (ICD):

ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments, which are in accordance with the principles of Shari’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s.

About AlHuda Center of Islamic Banking and Economics (CIBE):

AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research, advisory and capacity building over the last eleven years. The prime goal has always been to remain stick to the commitments and provide state-of-the-art Advisory Consultancy and Education through various well recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Trainings Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance.