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3rd Global Islamic Microfinance Forum' 2013

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AlHuda-Centre of Islamic Banking and Economics (CIBE) is a well known name in Islamic Banking and Finance sector which focuses on training, awareness, advisory and publications on Islamic Banking & Finance in order to promote the industry. AlHuda CIBE has organized a successful Conference "3rd Global Islamic Microfinance Forum" held on 6th & 7th October, 2013 in Dubai. AlHuda CIBE is very much pleased to share the topics and presentations being held in the Forum.

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3rd Global Islamic Microfinance Forum' 2013

  1. 1. Setting the Future Research Agenda for Islamic microfinance: Establishing the Evidence Base for Impact and Sustainability Dr Mohammed Kroessin Global Microfinance Advisor ISLAMIC RELIEF WORLDWIDE
  2. 2. Islamic microfinance research Agenda • Why research? • An emerging research agenda • How can IMFIs drive research? • The way forward
  3. 3. Islamic microfinance research Why research? - What is research? - Academic / IF fiqh - Market research - R&D / product development - Knowledge generation - Pure knowledge: academia - Applied knowledge: product development
  4. 4. Islamic microfinance research An emerging research agenda • What do we know: – I-MF in academia: very little interest in I-MF (Habib Ahmed) – I-MF R&D: some internal product development & innovation (GrameenJameel etc.) – I-MF market research: slowly emerging (IRTI, Kuwait Finance House, CGAP etc.)
  5. 5. Islamic microfinance research An emerging research agenda • Knowledge gaps (what don‟t we know) Sustainability Outreach / impact
  6. 6. Islamic microfinance research An emerging research agenda • Significance of knowledge gaps: “Sustainability”
  7. 7. Islamic microfinance research An emerging research agenda • Significance of knowledge gaps: “Sustainability in the I-MF context” – Social • non exploitative financing modes • Ethical vs. Sharia complaint – Environmental • Renewable resources (energy, raw materials, pollution) – Economic • Financial viability
  8. 8. Islamic microfinance research An emerging research agenda • Research questions about “Sustainability” – Uptake of I-MF (0.5% of global MF is Shari‟ah compliant, CGAP survey 2008) • Economic behaviour of clients • Socio-political analysis • Effectiveness of marketing strategies
  9. 9. Islamic microfinance research An emerging research agenda • Significance of knowledge gaps I: Impact/Outreach – I-MF still relatively small (IBBL RDS in Bangladesh 500k clients) – Business models not easily scalable – Outreach: depth vs. breadth – Impact
  10. 10. Islamic microfinance research An emerging research agenda • Significance of knowledge gaps II: Impact/Outreach – Evidence for social impact vs. rhetoric “In the development NGO sector internationally there has be an increasing recognition of the weakness of institutional learning and accountability and a growing gap between the rhetoric of agencies and the reality of what they achieve” (IMP-ACT).
  11. 11. Islamic microfinance research An emerging research agenda • Research questions: Impact/Outreach – What is the impact of I-MF products that are in economic terms very similar to conventional products (i.e. Murabaha, Qard Hassan with 15% mark-up/fee as compared to conventional MF with 15% interest)? – How can we measure the impact especially of the salient features of I-MF, i.e. equitable financing? – How can I-MF make a difference in particular contexts, i.e. Is asset-based financing or P/L better mitigating against external economic shocks etc?
  12. 12. Islamic microfinance research How can I-MFIs drive research? • building partnerships with academia – privileged access to data – encourage research – engage in critical debate
  13. 13. Islamic microfinance research How can IMFIs drive research? Case study: El Shaarani Centre for Islamic Business and Finance partnership with IR - At Aston Business School, Birmingham: - Shared research agenda - Looking for a market niche - Looking to be relevant to industry and society (Research Assessment Exercise) - Research on client behaviour (marketing) and comparative impact assessment
  14. 14. Islamic microfinance research The way forward -consortium-based research allows smaller I-MFIs to contribute by pooling resources -Global players (e.g. IRTI, WCMP) to take lead on global issues - bridge competitive „industry‟ -conceptualise and operationalise research - knowledge exchange
  15. 15. 192 Ahmad Block, New Garden Town, Lahore - Pakistan. Ph: (92-42) 35913096 - 98, Fax: (92-42) 35913056 Email: info@alhudacibe.com www.alhudacibe.com

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