IslamicFinance.de

Family businesses in the Middle East and in the Gulf region face crucial challenges and therefore turn to the government for help and support. The chairman of Al Fahim Group explains that government support and backing similar to the one during the leadership of the late Shaikh Zayed Bin Sultan Al Nahyan is necessary - local companies need to be supported by ensuring them government work and purchasing their products and services.

Read more on: http://www.zawya.com/story/Family_businesses_in_Middle_East_seek_governm...

The paper by Tanaya Kilara and Alexia Latortue addresses the topic of familiarizing poor individuals with savings programs. This is particularly important at early ages. Financial providers can offer tailored savings suitable even for young people from low-income families. Potential opportunities and obstacles which financial providers encounter are examined closely.

Read more on: http://www.microcapital.org/microfinance-paper-wrap-up-emerging-perspect...

SMEs move from their entrepreneurial phase to a professionally-managed phase. As a result, there is a huge necessity for them to adopt the concept of corporate governance. According to a report by Capita Group International (CGI), Gulf SMEs are not particularly efficient. There is a huge difference between their share of employment and their share of gross domestic product (GDP) to GDP's disadvantage. National Commercial Bank (NCB) shows in a report that the majority of GCC businesses, especially SMEs, demonstrate low efficiency, low growth, little innovation and weak management.

Read more on: http://gulfnews.com/opinions/columnists/challenge-of-entrepreneurship-in...

You can find out here what are the generally accepted advantages and disadvantages of saving groups in the sector of micro-finance:

http://savings-revolution.org/blog/2012/10/4/whats-the-difference.html

The promotion of creativity and innovation to drive change through social investment and the empowerment of women, were the main topics of the 8th Annual Clinton Global Initiative that was concluded on September 26 in New York. As a result of discussions more than 150 new commitments to alleviate global poverty, create a cleaner environment and increase access to health care were announced. In the course of the conference, the former US president Bill Clinton had awarded six personalities for their outstanding contribution to solving global problems.

See more under: http://www.microcapital.org/microcapital-brief-8th-annual-clinton-global...

The Global Islamic Microfinance Forum on Islamic microfinance will be held in the UAE on December 8, in which delegates from more than 30 countries will participate. The forum's purpose is to introduce Islamic microfinance on the global canvas as an effective tool for poverty alleviation and social development. It also aims to develop Islamic microfinance internationally and to have a dialogue with the international donor and development agencies and corporate entities for sustainable development.

More on: http://www.thenews.com.pk/Todays-News-3-134149-Global-Islamic-Microfinan...

The date for the Global Islamic Microfinance Forum on Islamic Microfinance is set: 8th December, 2012. Representatives from over 30 countries will gather in the UAE for the forum in order to exchange experience and expertise. The forum aims to introduce Islamic Microfinance to the global public and to present it as an effective tool for poverty alleviation and social development. Furthermore, it will try to develop Islamic Microfinance internationally and to have a dialogue with International Donor/Development agencies and corporate entities for sustainable development.

More on: http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/bu...

As Islamic Microfinance gains popularity in Arab countries, AlHuda Centre of Islamic Banking and Finance and Yemen Microfinance Network plan a two-day training workshop on Islamic Microfinance. It will take place on 16th & 17th September, 2012 in Yemen's capital city Sana'a. The event's goal is to increase the reach of Microfinance Institutions. Topics such as the proper utilization of Islamic Microfinance for alleviation of poverty in poor countries, Islamic Microfinance Products and their structure, Shari'ah principles of Microfinance and MicroTakaful are part of the programme.

According to a recent report by Kuwait Finance House (KFH), Islamic microfinance is a good solution for decreasing poverty. Since it is a combination of economic, social and religious principles, it uses two types of resources: external ones like Zakat and charity on one hand, and internal ones like deposits and equity. A number of institutions among which the Islamic Development Bank (IDB) and the World Bank are working on studying the viability of Islamic microfinance.

From the beginning the Islamic non-governmental organisations, cooperatives and microfinance institutions have been encountering numerous challenges. The principal challenge is Funding Islamic microfinance programme. A huge fund is required for covering the poor living below the poverty line. Resulting from the lack of fund, many Islamic NGOs, MFIs and cooperatives have not succeeded in reaching the poorest of the poor. Donors and developing agencies usually demonstrate almost no interest in funding Islamic NGOs-MFIs because of their misconception about Islamic views towards empowerment of women and modernisation. Thus, Islamic microfinance is yet to expand its country-wide outreach effectively in order to be provided with a fund from national and international Islamic donors and development agencies.

Islamic microfinance (IM) continues its development into a very popular mechanism for alleviating poverty, especially in developing countries. The expected growth of the Islamic microfinance industry is over $2.0 billion in 2012. Its ethical principles and prohibition of riba cause a continuous growth in this sector. According to the principles of Islam, which lay the basis for IM, investors in IM projects only take part in halal projects, thus benefiting the community to a large extent. An example of such a project is the charity based zakat.

The Sahulat Microfinance Society, a National NGO working for the financial inclusion through cooperative based microfinance, will lead a national consultation on “lnterest Free Microfinance through Cooperatives: Challenges and opportunities”.
The keynote speaker will be Prof. Dr M S Swaminathan. The Consultation has the purpose to focus on steps to defeat the practical hurdles in registration process of interest-free Microfinance Cooperative societies all over the country.

Microfinance has delivered to the poor and unbanked, the availability of micro loans and micro-insurance in exchange for micro-savings. Although its results as a tool to fight against poverty are sometimes controversial, it probably still misses an absolutely necessary ingredient to successful entrepreneurship: "micro-equity".
Ashta, Khan and Otto had done some macro/sociological analysis of the relationship of microcredit with suicides and had noted that it is possible for some cause to exist for stress in the relationship between the credit agent who needs to show a 100% recovery and the borrower who cannot always ensure this. They had advised the development of microsavings to balance the relationship between the MFI and the borrower so that the agent is not only giving loans to the client.

It seems that the Human Welfare Foundation will now provide loans in the form of interest-free microfinance to the poor across the country including Hyderabad.
Besides interest-free loans, a support system for human welfare containing a network of activities focusing on healthcare, protection of civil rights, women's empowerment, disaster management and encouraging strict adherence to ethics in professions such as medicine is the most needed thing at this point.

Dear Reader,

IslamicFinance.de is privately funded for many years. Now, for the first time, you have the possibility to make a contribution, from one Dollar upwards!

The technical details, and the money transfer via paypal is organised by Kapipal a new online fundraising tool:

http://www.kapipal.com/islamicfinance

On the blog I gave some more thoughts about Islamic finance media for those interested: http://www.islamicfinance.de/?q=node/3454

Please also note: The fundraising action has a deadline, so act today, not tomorrow and tell your friends about it!

All donors who will leave a message will be listed in the article, which follows after closure of the fundraising period.

I am happy to meet you in person either on 19th March in Milano (http://www.islamicfinance.de/?q=node/3396) or on 10th May in Frankfurt (http://www.islamicfinance.de/?q=BAFINII) at the respective Islamic finance conference.

Wa at Taufiq min Allah, all the best,

Michael Saleh Gassner

Dear Readers,

Islamic finance media are a tricky service. This is true for various reasons: The Internet eats up the revenues, because everything ought to be free. Islamic banks are still a niche phenomena, and international banks like UBS or Deutsche are almost as large as the entire global Islamic finance industry. Consequently the marketing budgets are much lower, too.

Last not least, who should advertise? The banks among themselves or to the clients? Advertising from bank to bank, does usually not make much sense, but real client oriented formats are hard to find, too. May be this is a niche. Others, who could finance Islamic finance media are basically the service providers to the banks, but due to the limited number of Islamic financial insitutions, direct marketing, e.g. face to face meetings will be preferred.

This in short is the background why Islamic finance media are not so well established in terms of journalism and research, but mostly reflecting the press release as criticised by the makers of the Islamic Globe. See: http://www.theislamicglobe.com/index.php?option=com_content&view=article...

The Human Welfare Foundation will now provide loans in the form of interest-free microfinance to the poor across the country including Hyderabad, making microfinance a more humane approach.
Besides the interest-free loans, a support system for human welfare involving a network of activities focusing on healthcare, protection of civil rights, women's empowerment, disaster management and encouraging strict adherence to ethics in professions such as medicine is the main need.

Islamic microfinance is evolving into an increasingly popular mechanism for alleviating poverty, particularly in developing countries around the world. The Islamic finance industry as a whole is forseent to reach over $2 billion dollars in 2012 and is a continually growing sector due to its ethical principles and prohibition of riba (interest).
Islamic microfinance offers the investor a chance to get implicated in worthwhile projects which could essentially play a significant role in targeting poverty and alleviating it in many countries around the world. Moreover, it is based on the provision of financial services to the poor or developing regions which are subject to certain conditions laid down by Islamic jurisprudence, representing the merging of two growing sectors: microfinance and the Islamic finance industry.

By organizing a one-day conference on Islamic finance and bringing together some of the
major players in the field of islamic and ethical finance , Islamic Relief-Italy, in collaboration
with ASSAIF, intends to share some reflections, case studies and initiatives in order
to contribute to solve the actual financial crisis. Thanks to a significant experience in
implementing development projects that are shari’a compliant , Islamic Relief represents
an interesting and successful example of Islamic finance initiatives that are born and
developed in Europe.The financial crisis which is nowadays afflicting most of the European countries has had

The financial crisis which is nowadays afflicting most of the European countries has had a significant impact on the real economy and on the society itself. Particularly, a growing
number of people are marginalized within the Italian society (not only migrants but also
the so called “new poors”) as well as within financial circuits and last but not least are
prevented from accessing credit. The Islamic finance, which is already operational in
several European countries, can provide solutions which are complementary to those

Sahulat Microfinance Society launched Sahulat Business Cooperation Group (SBCG), an interest-free microfinance unit at Metiaburz area of Kolkata city on 3rd January.
SBCG is member-owned, participatory and works on the principle of interest-free mechanism that offers a great leverage to the members. People of the locality attended the inaugural function.
The launch started with a welcome speech by regional coordinator of Sahulat at Kolkata, Mr. Rabiul Islam.