Islamic microfinance is an effective tool for poverty alleviation and it should be introduced around the globe, according to Bahrain's Social Development Minister Dr Fatima Al Balooshi.

Dr Al Balooshi made the comments while addressing the 3rd Global Islamic Microfinance Forum (GIMF) at Dusit Thani Hotel, Dubai, in which delegates from more than 30 countries took part, said a report in the Gulf Daily News (GDN), our sister publication.

The minister, who was also the chief guest at the event, added that Islamic microfinance should be supported by governments in different countries of the world to promote Islamic microfinance institutions.

The forum was organised by AlHuda Centre of Islamic Banking and Economics (CIBE).

Dr Al Balooshi also proposed that the 4th Global Islamic Microfinance Forum be held in Bahrain.

AlHuda CIBE chief executive Muhammad Zubair Mughal said poverty had been increasing in Muslim countries rapidly and consequently half of the world's poverty has, approximately, been confined to Muslim countries in the current age.

The involvement of interest in microfinancing is one of the major causes behind the phenomenon and that is why Muslims were hesitating to avail the facility.

"If Islamic microfinance was not introduced after resolving this issue, the world's poverty will increase extraordinarily," Mughal said.

He said that current facts to the failure of microfinance system require an alternative and prudent Islamic microfinance system to enhance financial inclusion globally and ultimately achieve global economic prosperity.

The forum was attended by researchers, scholars and Islamic microfinance practitioners. - TradeArabia News Service