(MENAFN- Editorial) The Two Days Specialized Training Workshop on Takaful organized by AlHuda Centre of Islamic Banking and Economics was successfully concluded at Uzbekistan Banking Association, Uzbekistan on August 5-6, 2019.The purpose of the training was to equip the professionals with Islamic finance knowledge keep focusing on the Islamic Insurance models and operational mechanism. Alongside, the Islamic finance promotion and to strengthen the industry in the region were also the agenda of the training.
The world well know trainer and consultant of Islamic finance, Mr. Muhammad Zubair Mughal conducted the training on the subject. During the training, the concepts, product development of Islamic insurance (Takaful) and product innovation was discussed.Mr. Zubair said that many new Islamic Finance markets are seen to be emerging on the horizon in the world including Commonwealth Independent States (CIS) countries. Uzbekistan is one of the emerging markets aggressively working for Islamic finance promotion and implementation. ICD - IsDB working very closely with various financial institutions for the development of Islamic finance in the region. ICD- IsDB also has huge investment portfolio for Islamic finance avenues in Uzbekistan.
Uzbekistan plans to introduce Islamic finance regulations and set up an Islamic finance institution to expand its banking sector and tap foreign markets. The Govt. of Uzbekistan is also plan to introduce the issuance of different tenure Sukuk (Islamic Bonds) to address the long-term and short-term liquidity and investment requirements of Islamic finance industry. Insurance companies are also working to start Takaful operations to meet the need of the Islamic financial market in the country.
The demand of Islamic banking and finance products is increasing. He is hopeful that the volume of Islamic finance industry will increase by 100% in next five years which also will strengthen global Islamic finance industry. The main reason is the increasing tendency of Russia towards Islamic Banking & Finance; the countries in central Asia are closer to Russia in Banking & Finance despite its having been separated from USSR. The promotion of Islamic finance industry in Uzbekistan will also attract the Foreign Direct Investment (FDI) in the country which will strengthen the economic growth of the country and will reduce the headcounts living under the poverty line.
Uzbekistan total population consist of 32 million inhabitants and 88% of them are Muslims, which is the supportive indicator for the growth of Islamic finance industry. Total 10% of inhabitants are living below the poverty line which would be addressed by the MSME financing. Islamic Microfinance (IsMF) is the most suitable source for MSME financing and need of the time to address poverty elevation from the country especially in rural areas by financially including the target people.
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