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WORLD BANK | MINISTRY OF RURAL REHABILITATION AND DEVELOPMENT, Afghanistan, 2012-2013

Strategic planning, product development of Islamic modes of financing and capacity-building on maqāsid al-sharīah in the provinces of Nangarhar, Parwan, Bamyan, Balkh, Herat, Kandahar, and Helmand.

The remit of the Inception Report aimed to foster the social and financial inclusion of villages and rural communities scattered in different provinces on behalf of the Afghanistan Rural Enterprise Development Program (AREDP) , the flagship programme of the Ministry of Rural Rehabilitation and Development. The Activity Plan included the following deliverables:

  • Development of Islamic modes of financing and related contracts vetted by Afghan shariah scholars. Transfer of ownership: bay' murābahah to finance the acquisition of goods; bay' salam and parallel salam to finance agricultural production and small trade; bay' istisna' to finance the production of artisanry; ijārah to finance MSMEs' stocks; ijārah muntahiyà bi-tamlīk as a leasing tool. Shared ownership: mudhārabah for livestock; mushārakah mutanāqisah partnership for financing the balance sheets of MSMEs. In addition: wadī'a for savings/deposits; qardh al-hasan for emergency financing. Use of micro-takāful policies to manage risk.
  • Establishment of a Shariah Board with the involvement of international recognized bodies and relations with the Faculty of Shariah at the Kabul University.
  • Creation of a Knowledge Center for rural, inclusive and sustainable development based on maqāsid al-sharīah (the Islamic reading of sustainable development), including gender and environmental issues. Compilation of brochures and clips to trace products/procedures/behaviours back to Islamic law.
  • Studying, initiating and sponsoring the Afghan Rural Development Micro Private-Equity Fund, a mechanism to allow for repetitive disbursement of financing. It aimed to create a financial virtuous circle and a culture of accountability for the end-users. Possible involvement of multilateral development banks, Afghan commercial banks and international investors eying the post-2014 environment.

The beneficiaries of this programme included 5.523 Saving Groups (2.562 of which female) totaling 62.479 members (29.243 of which women) situated in 678 villages across 7 provinces. They are now using at least one of the Islamic modes of financing developed. A weblog on Islamic finance in Afghanistan was also been launched. This permanent and ever-expanding capacity building tool is a prime initiative for Afghanistan and has quickly become a reference for stakeholders across the country.

Regular meetings with the Central Bank of Afghanistan were held to discuss Islamic finance guidelines and product development.

  • November 2014

    Turin Islamic Economic Forum (TIEF 2014)

  • November 2013

    Mediterranean Economic Forum and Workshop on Islamic Finance, 14th and 15th November, Malta

  • October 2013

    ASSAIF in Afghanistan - GOVERNANCE AND RISK IN ISLAMIC FINANCE

  • September 2013

    ASSAIF in Afghanistan - AREDP IN FOCUS: ISLAMIC MODES OF FINANCING

  • June 2013

    Workshop on Sukuk, the 24th-27th of June, Malta

  • January 2013

    Italian consultancy to help achieving a better future for Afghanistan

  • April 2012

    The World Congress of Muslim Philanthropists and the Global Donors Forum - Upgrading to Islam finance 2.0

  • March 2012

    Comunicato Stampa post-evento

  • March 2012

    Conferenza su 'Finanza Islamica opportunità per uno sviluppo inclusivo'

  • January 2012

    AK BARS Bank Islamic syndicated facility named 'Europe Deal of the Year

  • October 2011

    AK BARS Bank CIS debut Islamic syndicated facility going international

  • September 2011

    Stretching the boundaries of Islamic Finance -AK BARS Bank debut Islamic syndicated facility

  • May 2011

    Stretching the boundaries of Islamic Finance - Russia and Tatarstan joining the folk of Islamic finance

  • March 2011

    Stretching the boundaries of Islamic Finance – Islamic Philanthropy

  • January 2011

    Stretching the boundaries of Islamic Finance - The Takaful proposition

  • December 2010

    Stretching the boundaries of Islamic Finance the Russian initiative

  • November 2010

    Islamic Finance in EU growing slowly but surely

  • October 2010

    Stretching the boundaries of Islamic Finance: Italy and the Gulf

  • September 2010

    Stretching the boundaries of Islamic Finance: the European initiatives

  • July 2010

    Pushing the boundaries of Islamic finance: the 4th International Takaful Summit 2010

  • June 2010

    Pushing the boundaries of Islamic finance: Kazan and Istanbul events

  • May 2010

    Stretching the boundaries of Islamic Finance: Kuala Lumpur and Moscow events

  • March 2010

    Pushing the boundaries of Islamic finance: the Working Groups initiative

  • November 2009

    Events and publications

  • 6-7 July 2009

    Interest-free finance

  • 30 June-2 July 2009

    3rd International Takaful Summit 2009

  • 14 May 2009

    Norton Rose seminar in Milan

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