Kuala Lumpur, 16 Jan 2017— International Centre for Education in Islamic Finance (INCEIF), has signed a Memorandum of Understanding (MoU) with the International Federation of Red Cross and Red Crescent Societies (IFRC) to leverage Islamic Social Finance opportunities and develop strategies and fundraising tools in support of Red Cross and Red Crescent humanitarian aid programmes.
The MoU was signed today at INCEIF’s Kuala Lumpur campus by INCEIF President and CEO, Mr Daud Vicary Abdullah, and IFRC’s Under Secretary General for Partnerships, Tan Sri Dr. Jemilah Mahmood.
The partnership aims to explore and expand ways through which Islamic Social Finance can be used as a tool to raise much required operational finances for National Red Cross and Red Crescent Societies respond to disasters and other crises, reduce vulnerabilities, support healthy and safe living and foster a culture of peace in at-risk communities.
As part of the agreement, INCEIF will undertake research in innovative financial instruments that could assist Red Cross and Red Crescent humanitarian and development initiatives, including the design and development of Sukuk social impact bonds, Waqf and Zakat endowment funds and other mechanisms that make use of obligatory and voluntary faith-based donations. Pilot projects will launch soon in select countries in Africa, the Middle East and Asia, including Malaysia.
INCEIF will also provide guidance on ways to tap Islamic Social Finance, connect its alumni network in 80 countries with National Red Cross and Red Crescent Societies and advocate for the direct funding of programmes that alleviate suffering, build resilience and promote human dignity. In addition, the MoU includes the development of an IFRC internship programme for INCEIF students.
Dr. Jemilah says Islamic Social Financing has the potential to help address significant financial challenges in meeting the needs of millions of people caught in crises and poverty.
“We are keen to explore innovative ways the Islamic finance sector can work with Red Cross and Red Crescent Societies and demonstrate solidarity and principled action to save lives and promote dignity,” Dr. Jemilah adds. “We will be eager to see Islamic Social Finance contribute to strengthening communities and realizing the IFRC`s commitment of leaving no one behind.’”
“At INCEIF, we realise that it is a winning strategy to promote the development of Islamic Finance by establishing effective collaborative partnerships around the globe,” says Mr. Daud. “INCEIF is proud to add IFRC to our list of partners, which includes the World Bank, the Islamic Development Bank and the Islamic Financial Services Board. It is an honour for INCEIF to share our expertise and knowledge in Islamic Finance to better society through the Duty of Care, which is the true spirit of Islam.”
Islamic Social Finance was featured prominently at the 2016 World Humanitarian Summit as an important tool for humanitarian aid financing and championed by HRH Sultan Nazrin Muizzuddin Shah of Malaysia, the co-chair for the United Nations High Level Panel on Humanitarian Financing.