The Islamic Microfinance market has reached $1 billion in size due to its remarkable performance in alleviating poverty. Over 300 Islamic Microfinance institutions currently serve 1.6 million clients across 32 countries. International organizations are supporting the growth of Islamic microfinance to further reduce poverty. The CEO of AlHuda CIBE established the Centre of Excellence in Islamic Microfinance to provide advisory services and help conventional institutions transform into Islamic ones to accelerate the advancement of the industry.

1. Press release
Islamic Microfinance Market size touches $1 billion
Islamic Microfinance industry is rapidly progressing due to its superior performance for poverty
alleviation
17th
April, 13
(Abu Dhabi)Islamic Microfinance is rapidly gaining acceptance in Muslim and Non- Muslim countries due
to its remarkable performance in poverty eradication; because of which, this industry is making quick
progress. According to our careful estimate Islamic Microfinance market’s worth has reached $1 billion.
These views were expressed by Muhammad Zubair Mughal, the Chief Executive Officer of AlHuda Centre
of Islamic Banking and Economics (CIBE) ,while, addressing the International Islamic Finance conference
as a Guest of Honor. This conference was organized in Abu Dhabi-the capital of United Arab Emirates, in
which the experts and researchers of Islamic Microfinance industry participated from all over the world.
The event was organized on 14th
- 16th
April, 2013 in Park Hyatt Hotel- Abu Dhabi by the international
research and publication organization- Emerald in association with Abu Dhabi University.
Muhammad Zubair Mughal said that currently more than 300 Islamic Microfinance institutions are
offering their services to 1.6 million clients in almost 32 countries. Due to Islamic microfinance’s
significant role in reducing poverty, international donor institutions and multilateral organizations like
USAID, IDB, ADB, IFAD, UNDP, World Bank and IFC etc have clearly explained their policies in different
countries to further strengthen Islamic microfinance, which will ensure the quick advancement of
Islamic microfinance in near future. He added that if we take an overview of last 10 years of Islamic
finance industry, it can be observed that with the passage of time Islamic banking, Sukkuk, Takaful and
Islamic fund etc have progressed quickly. While, in next 3 years Islamic microfinance will progress more
quickly relative to other Islamic financial products.
He informed that to further strengthen Islamic microfinance, AlHuda CIBE has established an
international division named “Centre of Excellence in Islamic Microfinance (CEIMF). Its major objective is
to provide the Advisory & Consultancy to Microfinance Institutions so that conventional microfinance
institutions can be transformed into Islamic microfinance institution and along with this new Islamic
Microfinance Institutes can be established. In this regard, Centre of Excellence in Islamic Microfinance is
offering its services in Azerbaijan, Yemen, Afghanistan, Pakistan, Mauritius, Indonesia, Kazakhstan and
other countries. He stated that there is immense need of research in Islamic microfinance industry so
that new Islamic microfinance products can be introduced. As at present, only Murabaha has 80% share
of total Islamic microfinance market. He mentioned that the popularity of Islamic microfinance is
evident from this point that many international universities have requested AlHuda CEIMF to assist
them in incorporating Islamic microfinance as a subject in their business & finance syllabus.

2. Muhammad Zubair Mughal said that almost half of the world’s poverty is prevalent in Muslim countries.
One of the reasons of high poverty rate in Muslim countries is the refusal of Muslims to take interest
based loans. Islamic Microfinance is an essential tool to eradicate poverty from Muslim world otherwise
the attainment of the United Nation’s Millennium Development Goals is impossible#