Poverty in Europe can be reduced by Islamic Microfinance

Press Release

22-03-2014

(Vienna - Austria). In Europe 80% of the people which account for 17% of the whole European population, are living below the poverty line of European countries which is increasing in consequences of current European financial crisis and unemployment, while the major portion of European poverty prevails in eastern European countries i.e. Romania, Armenia, Albania, Bulgaria and Greece where more than 20% people are suffering from poverty which is unfavorably increasing where such indicators are proving that the poverty has not only been the critical issue of Africa, Latin America or South Asia rather the European countries are also being affected by it adversely whilst this issue can be addressed through introducing Islamic microfinance in Europe, said by Muhammad Zubair Mughal, Chief Executive officer- AlHuda Centre of Islamic Banking and Economics (CIBE) while addressing to the 10th Global Microfinance Forum held on 21st March, 2014 in Vienna, capital of Austria which was attended by delegates, experts and researchers from more than 35 countries.

He said that Islamic Microfinance should be introduced as a financial product in Europe for poverty alleviation to benefit all the religions without any religious discrimination. He added that recent researches as conducted by the international research institutes have proved that Islamic Microfinance has more impact in the lives of poor than the conventional microfinance and results in the better financial condition of poor beside improved health, education, employment creation, enhanced capacity and long lasting source of income. Islamic Microfinance, as per its characteristics, got enough appreciation and moving ahead, London is desired to be introduced as the Hub of Islamic Banking and Finance after the recent international financial crisis while number of Islamic Financial Institution are being established in Europe and America, while Islamic Microfinance institutions are also increasing rapidly, more than 300 Islamic Microfinance Institutions are working in 32 countries with a size of more than US $ 1 billion.

Muhammad Zubair Mughal said that to strengthen the Islamic microfinance there is need of introducing legal and regulatory regime of Islamic microfinance institutions so that Islamic Microfinance can be introduced globally in broader prespective. To gather the Islamic microfinance institutions on one platform, AlHuda Centre of Islamic Banking and Economics (CIBE) is going to organize Global Islamic Microfinance Forum 2014 in Abu Dhabi to streamline the policy for the development of Islamic microfinance, standardization and to resolve the similar issues for ultimate introduction of Islamic Microfinance as the best solution.