Poverty in Muslim World is Rapidly Increasing: Zubair Mughal

Poverty can easily be driven away through Islamic Microfinance

Zubair Mughal, CEO, AlHuda CIBE is receiving the plaque of appreciate from H.E Dr. Mounir Tlili, Minister of Religious Affairs of Tunisia during Int’l Islamic Microfinance Symposium which was organized by Islamic Development Bank, Tunisian Association of Islamic Economics & GIZ on in Tunis.

(Tunis) Half of global poverty reside in Muslim world while the Muslim population is 24% of the total global population, if the dangerously increasing poverty in the Muslim community is not controlled soon then it will be alarming. These concerns were addressed by Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics while speaking at Islamic Microfinance Symposium that was held at Tunis – Tunisia which was organized by Tunis Association of Islamic Economics with association of Islamic Development Bank (IDB) and German Donor Agency GIZ. 

He mentioned the various causes of rapidly increasing poverty in the Muslim world i.e. lack of education, lack of employment political instability and so on. But on the other hand, the main hitch is unavailability of the proper financial products which are in line with the Muslim’s religious values and social norms. Micro financing is not utilized by Muslim population due to interest and thus is excluded from financial inclusion. On the other hand, Muslim world can be led out of the poverty by extending financial inclusion through Islamic microfinance. He said that the according to the statistical information of multilateral development agencies, 300 million people were graduated from Micro to SME level in past year, and the countries mentioned in the list are China, India, Brazil and Chili etc. but when we look at the enlisted countries we will come to know that then countries mentioned in the list are not Muslim and by this we will come to know that the poverty is decreasing in non Muslim countries and increasing in Muslim world. 

He further added that unfortunately, Islamic microfinance is not given the proper place in the poverty alleviation strategies of International development agencies (e.g World Bank, UNDP, IFC, USAID etc) in the way it should have been given. Islamic microfinance is just 1% of the total micro financing of the world that is just 1 Billion USD. He said that there is no religion of poverty but religion plays an important role in poverty alleviation. This is the reason; Islamic microfinance should be given a proper place in the modes of poverty alleviation through which both Muslims and non-Muslims can take benefit. He added that there are various non Muslim countries where Islamic micro fiancé has been used so effectively to alleviate poverty. 

Experts from 15 countries including Morocco, Kenya, Yemen and Pakistan had taken part in the symposium. A mutual declaration about the legal frame work of Islamic microfinance was given at the end of the event. 

2014 will be promising for Islamic Finance Industry

Islamic finance volume will be reaching at US $ 2 trillion with having 78% share of Islamic banking, 16% Sukuk, 1% Takaful, 4% Islamic funds and 1% Islamic Microfinance: Zubair Mughal

31-12-2013

(Lahore) Islamic finance will grow with rapid pace in the year 2014 and its volume will pass through US $ 2 trillion where Islamic banking keeps 78%, Sukuk 16%, Takaful 1%, Islamic Funds 4% and Islamic Microfinance has 1% share in the Islamic Finance industry. In the year 2014, Dubai and London will be in competition to be the global hub of Islamic Banking and Finance while Kuala Lumpur will also attempt to be in this contest but the Islamic finance industry can be grown more through synergizing approach and alliance with industry stakeholders rather than setting any competition. These views were expressed by Islamic Finance expert, Mr. Muhammad Zubair Mughal, CEO - AlHuda Centre of Islamic Banking and Economics (CIBE) during an analysis on Islamic finance industry in the beginning of year 2014.        

He said that the Islamic finance industry growth will go on double digit in 2014 which will turn the US $ 1.6 trillion volume of Islamic finance industry in December 2013 to US $ 2 trillion by the end of 2014 including North African countries (Tunisia, Libya, Morocco, Senegal and Mauritania etc), rising trends of Islamic finance in Europe and UK, also the rising and substantial share of international market of Sukuk shall contribute to it. It is anticipated that India and China may step towards the Islamic finance in 2014 where more than 200 million Muslim populations are in search of a compatible financial system with their religious beliefs and thoughts. He said there is no doubt that international financial crisis will not hit the Islamic finance industry but due to the Arab Spring, Islamic finance industry has faced recession in some countries of MENA but there are chances of  their revival in 2014.

He, giving an analysis, said that Sukuk will grow rapidly in 2014 and Muslim countries including non-Muslim countries e.g UK, China, South Africa and Europe etc will also get benefit from it which will enhance the growth in Islamic finance industry but Takaful Industry is not supposed to have any substantial breakthrough. It is being hoped that 2014 will prove better period for Islamic Microfinance industry as different international institutions including Islamic Development Bank (IDB) have declared it a potential tool for poverty alleviation around the globe. He also added that Islamic finance industry may face recession in certain countries including Indonesia while in Nigeria and Tunisia it may face some problems on religious and political grounds. He said that the Islamic finance initiatives in America and Canada including Latin American countries (Brazil, Argentina and others) have been taken and it is hoped that Islamic Funds market will come into existence in these regions by the year 2014.

International Trade can be enhanced through Halal Certification : Muhammad Zubair Mughal

The Global Halal Market size of 1.8 billion Muslim population is $ 3.2 trillion.

Zubair Mughal (CEO - Halal Research Council) Speaking about “Halal Certification Process” at “International Halal Accreditation Forum 2013” which was held on 25th – 26th October, 2013 at Istanbul by the Govt. of Turkey. This forum was inaugurated and chaired by H.E Tayyip Erdoğan, Prime Minister, Republic of Turkey. — at İstanbul Congress Center / İstanbul Kongre Merkezi

(Istanbul) The importance of Halal Certification is being well-known because of rising awareness with Halal in Muslim societies which is increasing the Halal Certified products and services rapidly and finally international trade can be enhanced in the Halal marker having a size of $ 3.2 trillion of 1.8 billion Muslim population, these views were expressed by Muhammad Zubair Mughal CEO – Halal Research Council (HRC) during the speech at International Halal Accreditation Forum (IHAF) jointly organized by Turk AK, Ministry of European Union Affairs and SMIIC under the supervision of Turkish government on 25th and 26th October, 2013 at Istanbul in which delegates from more than 60 countries participated.

He also said that there are more than 300 Halal Certification bodies working in more than 125 countries while Halal certification is not only the name of business rather a big religious responsibility and on its basis, millions of people use these products discriminating the Halal and haram but a minor ignorance can cause a damage to the Shariah. In Islam Halal and haram is not only confined to the Food industry rather its scope covers the Services (Islamic Banking, Halal Tourism and Halal Business etc), Cosmetics and Physical (Touchable) items. He also pointed out that non-Muslims have 82% control over Halal industry which is the unsafe phenomenon for the Muslims having only 18% share in the Halal industry. He, presenting Pakistan as a Case Study, said that there is viable environment in Pakistan for Halal Industry in which Halal Laboratories, Halal Meat Complex, Halal Accreditation Scheme, Government facilitations and well known Educational Institutes and schools for Food Industry are included that is why the majority people, having more than 50% control on Halal Certification belong to Pakistan and also facilitating in Halal Certification in America, UK, Germany, Australia, Canada, Norway, Switzerland, Belgium and Spain which is an authentic source of availability of Halal Products for Muslims.

Tayyip Erdoğan – Prime Minister of Turkey, addressing to inaugural ceremony of International Halal Accreditation Forum (IHAF), welcomed all the international experts of Halal Industry came from different parts of the world and expressed his well wishes for the success of Forum. Remember, IHAF itself was the first initiative on Halal Accreditation of Halal Certification Industry.