Africa Financial Inclusion’s Post

November Highlights: Reflection, Learning, and Action 🎓 Exploring New Financial Streams for Sustainable Impact: This month, I attended several thought-provoking conferences and webinars on #financing challenges and opportunities in the #MENA region. Highlights include the #Sukuk and #Green Financing in the ME Region event by Islamic Corporation for the Development of the Private Sector (ICD) and the Second Annual Regional Policy Forum on "Financing Universal Social Protection Systems in the Arab Region" by the Arab Reform Initiative (المنتدى السنوي الإقليمي الثاني للسياسات: تمويل أنظمة الحماية الاجتماعية الشاملة). These discussions offered valuable insights into financing mechanisms for achieving inclusive and sustainable development. 📚 Deepening My Understanding of Islamic Finance: My journey into Islamic finance has been both humbling and rewarding. This month, I focused on understanding #Shariah principles for product development and exploring the role of Islamic social finance in addressing poverty and inequality. In particular, I researched its applications in development, examining how Islamic finance tools can redefine poverty and alleviate it through Zakat, Sadaqah, and Waqf. Huge shoutout to my incredible classmate, Khadija Abdi Hassan, who’s finishing her Master’s this semester. Excited to have such brilliant support on this path! 💡 Here’s to continuing the journey of learning, reflecting, and striving for a better world. If these topics resonate with you, let’s connect or exchange insights! #IslamicFinance, #Sustainability, #MENA

The promising rise of the Islamic investment sector that we witness today has been decades in the making. Despite surging global interest and demand, Islamic Finance has battled considerable hurdles over the past half-century of its modern evolution. Even after nearly 50 years, the Islamic finance industry still wrestles with fragmentation across too many small players and a lack of standardization. Yet the growth signals are undeniable as mainstream finance increasingly embraces principles of Shariah-compliant investing. Looking ahead, the future looks brilliant for professionally managed and standardized Islamic investment. Imagine the vast possibilities once consolidation produces large-scale Islamic financial giants. An irresistible force democratizing ethical, responsible investment practices could emerge. Islamic finance represents a rapidly expanding $3 trillion-plus market opportunity globally for both Muslim and non-Muslim investors alike. P.S. From your perspective, what key growth obstacles must still be overcome for Islamic finance to achieve its full potential? Share your insights. While challenges remain, the resilient rise of this ethical investment approach rooted in 1,400-year spiritual principles cannot be ignored. Its progression signals the coming renaissance of a values-based financial future. #islamicfinance #investment

Azerbaijan's Economic Landscape is About to Undergo a Seismic Shift, Thanks to Islamic Finance In a groundbreaking move, the Islamic Development Bank (IsDB) has joined forces with Azerbaijan to develop a comprehensive Islamic finance regulatory framework. This partnership, revealed by Sami Al-Suwailem, Acting Director General of the IsDB Institute, in an exclusive interview with Trend, could be the key to unlocking Azerbaijan's economic potential. By aligning financial practices with ethical values and promoting community welfare, Islamic finance offers a new path forward for Azerbaijan's economy. It's a model that prioritizes real wealth creation and equitable distribution, ensuring that the benefits of economic growth are felt by all. The IsDB Institute's collaboration with Azerbaijan is part of a broader regional trend, with similar initiatives underway in Kazakhstan and other countries. As Islamic finance gains traction, it has the potential to reshape not just Azerbaijan's economic landscape, but the entire region's. This is more than just a financial shift – it's a vision for a more inclusive, sustainable, and prosperous future. And with the IsDB Institute's expertise and guidance, Azerbaijan is well-positioned to lead the charge. As the country embarks on this transformative journey, the world will be watching closely, eager to see how Islamic finance can unlock new opportunities and drive positive change. P.S. How do you think Islamic finance will reshape Azerbaijan's economy in the coming years? Share your predictions in the comments. #IslamicFinance #Azerbaijan #EconomicTransformation #InclusiveGrowth #SustainableDevelopment #CommunityWelfare #IsDB #RegionalCooperation #EthicalInvesting #FutureOfFinance

🌟 New Research Published in the European Journal of Islamic Finance! 🌟 📚 Title: Analyzing the Relationship Between Banking Performance and CSR in the Tunisian Context: A Comparative Study of Conventional and Islamic Banks 🔍 Description: This study by Rania Ben Belgacem, Anis Ben Amar, and Valerio Brescia investigates the link between Corporate Social Responsibility (CSR) and financial performance in Tunisian banks. The research examines a comprehensive sample of banks from 2018 to 2022, focusing on Return on Equity (ROE) and Return on Assets (ROA). Key findings include: #IslamicBanks: Strong CSR practices lead to improved ROA, aligning with the ethical principles of Islamic finance. #ConventionalBanks: No significant correlation between CSR and ROE, with a negative impact on ROA observed. This study highlights the sector-specific nuances of CSR and its influence on financial performance, providing valuable insights for banking professionals, policymakers, and stakeholders. 🔗 Read the full article here: https://lnkd.in/diK3upi9 #IslamicFinance #CSR #Banking #Research #EJIF #EthicalFinance

NIAGA SPOTLIGHT 31/05 Astro AWANI ISLAMIC FINANCE & ECONOMICS Prof Dr Aishath Muneeza, Associate Dean at INCEIF University joined me to discuss Islamic Finance and Economics. Did you know? By 2026, the global Islamic finance industry is expected to reach $6tn in value. • We talked about the BDS Movement in reaction to Palestinian genocide by Israel and how this must lead to increased vigilance on the composition of Shariah compliant financial instruments and ethical investments. • The need to move beyond traditional banking and financial metrics, “growth” numbers to measure IMPACT of Islamic Finance for underserved communities and people • Fully harnessing the potential of Islamic finance as a tool for poverty alleviation and enhancing social mobility. Via initiatives such as UNFPA Malaysia Orange Perpetual Fund and the Work Kafalah programme to economically empower Domestic Violence survivors through Islamic financing solutions . . . . . . . #NiagaSpotlightWithTehminaKaoosji #501Awani #IslamicFinance #IslamicEconomics #MaqasidShariah #NetZero #Malaysia

Bridging the Gaps in Islamic Finance: A Call for Innovation and Research As Pakistan approaches the complete Islamization of its banking industry by 2028, this achievement signifies a pivotal moment in aligning financial systems with Shari’ah principles. However, significant work remains to ensure long-term success. While Sharia-compliant products have facilitated the growth of Islamic finance, developing Sharia-based products—structured entirely within Islamic economic principles—is essential for achieving the ultimate vision. These solutions are fundamental for moving beyond compliance and creating a financial ecosystem rooted in justice, risk-sharing, and socio-economic equity. Islamic Financial Institutions (IFIs), academics, and students must focus on: 1. Conducting in-depth research to identify and address market gaps. 2. Designing authentic Sharia-based financial products. 3. Promoting innovative frameworks aligned with Maqasid al-Shariah. Fostering innovation and addressing these gaps will ensure the Islamic finance industry evolves into a transformative model, contributing to a sustainable and just economic future. #IslamicFinance #ShariaBasedInnovation #Research #EconomicTransformation #SustainableFinance Muhammad Saad Zakir Hazrat Khubaib Khubaib Ul hassan Hassan Ali Abbasi Yasir Ali

Here is yet another, BiG-WiN for Islamic Finance in the next 5-decades. Leading Sovereigns out of Global Debt Traps What if Islamic finance could lead sovereigns out of global debt traps through ethical, sustainable Islamic financial solutions? In a world facing unprecedented debt crises, Islamic finance offers a way forward with its focus on risk-sharing, transparency, and social responsibility. By providing alternatives to riba-based, debt-based financing, we can help nations regain control of their economic futures and build long-term stability. This is the kind of bold leadership that the next five decades of Islamic finance must aim for—solving real-world challenges and driving meaningful change. Stay tuned for more in the Big-Wins Series, brought to you by IBaaD (Islamic Banking as a Duty), founded by MIT-Muhammad Ikram Thowfeek. It’s time to lead differently and reshape the global financial landscape. Want to be part of these BiG-WiNs write to us: Team@ibaad.academy #IslamicFinance #BigWins #GlobalDebt #SovereignSolutions #SustainableFinance #MITMuhammadIkramThowfeek #IBaaD #LeadDifferently #EconomicStability

Understanding Diminishing Musharakah in Islamic Banking: Features, Functions, and Applications What is Diminishing Musharakah and how does it work in Islamic banking? In this educational video, we explore the concept of diminishing musharakah in Islamic banking, breaking down its key features, functionalities, and real-world applications. Learn the diminishing musharakah meaning, where partners share ownership and gradually transfer their stake in an asset, making it a flexible and ethical financing option. Discover how diminishing musharaka is applied in various financial products, including home financing and business partnerships, and how it aligns with Islamic principles of fairness and transparency. Whether you’re new to Islamic finance or looking to deepen your knowledge, this video provides valuable insights into this unique and innovative financial structure. For a complete lecture on Diminishing Musharakah, and for more lectures on Islamic Banking and Finance visit: https://lnkd.in/dV5fJJEF #DiminishingMusharakah #DiminishingMusharaka #Musharakah #Musharaka #AIMS #AIMSEducation #Education #elearning #Training #OnlineCourses #WhatIs #OnlineCourses #IslamicBanking #IslamicFinance #ShariahCompliant #IslamicFinancing #IslamicBankingandFinance #Banking #Finance #IslamicStudies #islamiceducation Institute of Islamic Banking and Finance https://lnkd.in/daueDBRJ Certified Islamic Banker (CIB) https://lnkd.in/g-zGhWjR Certified Islamic Finance Expert (CIFE) https://lnkd.in/gry5S8Uj Master Diploma in Islamic Finance (MDIF) https://lnkd.in/ev4GcsHB MBA in Islamic Banking and Finance https://lnkd.in/dDzctmKW PhD Islamic Finance https://lnkd.in/dn5dVYhc

Core Principles of Islamic Finance (Part 5) —— Part 1: https://lnkd.in/dYmZ-w7h —— Part 2: https://lnkd.in/dy_mTgGd —— Part 3: https://lnkd.in/dC64y9uW —— Part 4: https://lnkd.in/dEJvSgcz 9. Emphasis on Halal Investments Islamic finance ensures that all investments comply with Shari’ah principles. This requires rigorous screening processes to ensure that businesses and financial products are ethically sound. Shari’ah Compliance: Islamic financial institutions employ Shari’ah boards to oversee and ensure compliance with Islamic principles. These boards evaluate the permissibility of financial products and services. Screening Criteria: - Businesses involved in haram activities are excluded. - Financial ratios, such as debt-to-equity ratios, are analyzed to ensure compliance with Islamic guidelines. 10. Encouragement of Economic Justice Economic justice is a fundamental objective of Islamic finance. This principle ensures that wealth is distributed equitably, reducing poverty and fostering societal well-being. Fair Distribution of Wealth: Islamic finance promotes mechanisms like zakat, waqf (endowments), and qard al-hasan (benevolent loans) to address economic disparities and support marginalized communities. Eradication of Exploitation: Practices that exploit individuals or communities, such as predatory lending and monopolistic behavior, are strictly forbidden. Conclusion The core principles of Islamic finance—prohibition of riba, risk-sharing, asset-backed financing, ethical responsibility, and profit-and-loss sharing—set it apart from conventional financial systems. By prioritizing social justice, ethical investments, and equitable wealth distribution, Islamic finance provides a sustainable and inclusive framework for economic development. As the global financial landscape evolves, the principles of Islamic finance offer valuable lessons for creating a fairer and more resilient economy. Its emphasis on ethical practices and real economic value makes it a compelling alternative for both Muslim and non-Muslim investors seeking financial solutions aligned with moral and social values. #Islamicbank #NIB #NIFI #Ethicalbank Jaiz Bank Plc TAJBank Ltd. LOTUS Bank The Alternative Bank SunTrust Bank Nigeria Ltd

The regulatory evolution in Islamic economy is a complex and dynamic process that requires collaboration, innovation, and commitment from all stakeholders. The fifth thematic panel of the 1st AlBaraka Summit, titled “The Regulatory Evolution in Islamic Economy: Exploring Components, Challenges, and Opportunities” will explore this evolving landscape to help regulators create a more robust and sustainable Islamic Economy. 🗓️Friday and Saturday, 24 - 25 May, 2024 📍Istanbul Lütfi Kırdar, ICEC – Türkiye #AlBarakaSummitIstanbul2024 #Islamicfinance #Islamiceconomy #Finance #Economy #AlBarakaForum #Türkiye #istanbul #1stAlBarakaSummitinIstanbul Albaraka Türk Katılım Bankası A.Ş Investment Office of the Presidency of the Republic of Türkiye Türkiye Wealth Fund Istanbul Financial Center Ibn Haldun University Islamic Cooperation Youth Forum (ICYF) Takasbank - İstanbul Takas ve Saklama Bankası A.Ş. Türkiye Emlak Katılım Bankası Yıldız Holding