| Enhancing Financial Inclusiveness: CGAP, Deutsche Bank, Grameen-Jameel And Islamic Development Bank Partner To Launch ’Islamic Microfinance Challenge 2010’-continued | |||||
| Islamic microfinance has gained some traction over the past few years, with a swift rise in the number of institutions offering microfinance products in compliance with Islamic principles. But the fundamental challenge for the Islamic microfinance industry remains meeting client demand with affordable, authentic, profitable, and market-driven products.
“The competition will identify innovative product and business ideas that fulfill both Islamic and good business criteria, and thus have the potential to become self-sufficient and profitable,” said Alexander Schuetz, Managing Director and Chief Operating Officer for the Middle East and North Africa region of Deutsche Bank. The winner will be awarded with US $100,000 in grant funds to launch a pilot program of their proposed business, which the competition organizers will then showcase to garner further support for the program’s growth and development. While conventional microfinance institutions (MFIs) have made significant inroads in creating a more inclusive financial system for the poor, many Muslims do not accept conventional microfinance products, on account of their dissonance with Islamic law (Shariah). Islamic finance principles prohibit interest-based contracts, and emphasize risk-sharing and asset-backed transactions. |
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