Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI), the global umbrella of Islamic financial institutions, and the World Bank yesterday signed a memorandum of understanding (MoU) aimed at helping foster the development of Islamic finance globally and expand its use as an effective tool for financing development worldwide.

The MoU serves as the foundation for future co-operation in the areas of knowledge generation and dissemination; distilling and sharing lessons of experience; encouraging research and promoting awareness; and enhancing capacity in the Islamic financial services industry, said a report in the Gulf Daily News (GDN), our sister publication.

“This signing underscores the World Bank’s commitment to the development of the Islamic financial services industry,” World Bank Global Finance and Markets Practices head of Islamic finance Abayomi Alawode said.

“As the industry expands, it will inevitably impact the way global finance evolves to support real sector economic activity and contribute to addressing the challenges of ending extreme poverty and boosting shared prosperity.

“We look forward to working closely with CIBAFI to strengthen the institutional foundations of Islamic finance, enhance regulatory and supervisory frameworks, and share sound practices and lessons of experience in the industry, including sound practices relating to business practices, risk management and market development.”

CIBAFI secretary general Abdelilah Belatik said the partnership would strengthen the council’s role.

“CIBAFI aims to be the ‘voice’ of the industry and advocate for the Islamic financial services industry with other international organisations, international standard-setting organisations and regulatory and supervisory authorities as well as support its strategic objectives – research and publications as well as aware  ness and information sharing,” he added. - TradeArabia News Service