IslamicFinance.de

Ethica Institute of Islamic Finance in Dubai interviewed Pakistan-based Akhuwat, a microfinance program that has given loans to over 1 million people, without charging interest. Akhuwat-founder Dr. Muhammad Amjad Saqib explained that they rely on 4 core principles: giving up interest, volunteerism, localization, and empowerment. Akhuwat started a decade ago with a $100 loan, and until now has dispersed $30 million. 99.8% of the loans were paid back in full. Dr. Saqib said that financial institutions began their activities on the basis of doubt, but they started their activities on the basis of trust.

In response to the exponential growth of Islamic Banking as a field, Woodbridge University has introduced its MBA program in Islamic Banking. The program is designed to equip executives with the specialist knowledge required for professional development in the international finance sector. It follows many of the same core modules as the Banking and Finance MBA, but also includes specialist modules in Islamic Banking and Finance. The MBA Program has attracted over 1,500 new students so far.

During the last ten years, Pakistan-based Akhuwat, the world’s first completely interest-free microfinance program, has disbursed $30 million to over 1 million people, without charging any interest. The company now has more than 1,000 regular employees and offices in 105 cities of Pakistan across the country. Their mission is to challenge the interest based system and challenge Islamic finance to evolve out of its current complacency with interest-mimicking products towards products based on the foundational principles of equity, sharing, and gifting and therfore fight poverty.