Documente Academic
Documente Profesional
Documente Cultură
Islamic Microfinance
Islam
IBADAT Muamalat
(Man to God Worship) (Man to Man Activities)
• Musharakah • Murabahah
• Modarabahah • Ijarah
• Other Products •Salam & Istisna etc
External (Equity & Debt) Financing
Equity Financing Debt Financing
Uqud al-Ishtirak Uqud al-Muawadhat
(Contracts of Profit (Deferred Contracts of
Sharing ) Exchange)
Al-Mudarabah Al-Bai’ Bithaman (Mu)Ajil
(Trustee Profit Sharing) (Deferred Installment Sale)
Al-Musharakah (Joint Bai’ al-Murabaha
Venture Profit Sharing) (Cost Plus Profit Sale)
Others Al-Ijarah (Leasing)
Bai’ al-Salam (Commodity Sale)
Murabaha
Musharaka (Cost Plus Profit Sale) Ijarah
(Joint Venture Profit Sharing ) Musawama ( Leasing )
Risk sharing
Prohibition of speculative
behaviour
Purity of contracts
Shariah-approved activities.
Prohibition of Riba ( Interest)
Conventional
money
MFI Client
Islamic
money
Modes of Islamic Microfinance
Need & Compatibility
For Muslim majority country great need for Islamic MF exist and large
. •Germany:2
•- Muslim
•UAE: 8
•- Dubai Islamic Bank
Society •Bahrain: 2 •- Abu Dhabi Islamic Bank2
•Kuwait:
•United States: 4 •Switzerland: •- HSBC Amanah •- Kuwait Finance
•Kiva 6 House
•UK: • Afghanistan: 4
•Helping Hands
•- HSBC Amanah •- FINCA , WOCCU
•Muslim Aid
•- Muslim Aid •- CHF
•Lariba
•- Islamic Relief • Ariana
•- The Halal Mutual •Iran: 8 •Pakistan: 11
Investment Company •India: 3
•Turkey: 7 •Bangladesh:
•Egypt: 9 •- Faisal Finance 9
•- Alwatany Bank of Egypt Institution •Malaysia: 11
•- Egyptian Saudi Finance •- Ihlas Finance•2 - Pure Islamic Banks
•Sudan: 3 House (Bank Islam, Bank
Muamalat)
•Rest - conventional
•Indonesia: 4
banks
•Yemen: 1
Islamic Microfinance Updates
IMFI’s in Afghanistan
WOCCU CHF FINC
A IMFI’s in Pak
Ariana Fin
. Services KKCB
d
un
Donors ic
F
Is lam CWCD
TPL
UNDP Kuwait
NRSP
PPAF Akhuwat
WorldBank fund k or
IDB Ban IR do
K
MISFA n n
Islamic Funds eza we
Me Helping Kh
USAID Hands
Int’l IMFI,s Muslim
Aid
Is ank
la
B
m bd
ic
A
FINC AIM
AlBaraka
d one si a
UNCDF i n
BMT
FINCA - Experience in Afghanistan
• Clients: 41,213
• Village Banks: 5,529
• Portfolio: $8,324,142
• Average loan size: $329
• Staff members: 387
• Clients per CO: 187
WOCCU Experience in Afghanistan
2004 – 2005 WOCCU helped to establish two area-based open bond credit unions in the no
of Afghanistan: Balkh and Jawzjan.
In 2007 , WOCCU has established another five Investment Finance Cooperatives (IFCs)
n the East and South of the Country for Murabaha
• A source of income
Islamic
Insure Shariah
Risk Sharing MF
Compliances
Functions and operations are based Functions and operations are based
on fully man made principles on Sharia’h principles
assured of pre-determined rate of Promote risk-sharing between
interest provider of capital (investor) and user
of funds (entrepreneurs)
Aim at maximising profit without any Aim at maximising profit but subject
restrictions to Sharia'h restrictions
Creditor-Debtor relationship Partners, investor and traders, buyer
or seller relationship
Based on money trading. Money is a Encourage asset-based financing
medium of exchange and not a and based on commodity trading &
commodity Services
Conventional Micro Finance Islamic Micro Finance