Islamic Microfinance Conference Holds for Development of Small and Medium Size Businesses

July 22, 2024- Mr. Sidiqullah Khalid, the Director General of the Governor’s Office of DAB delivered a speech at the conference held under the title of 'Islamic Finance Week of Afghanistan,' which focused on Islamic microfinance.

Mr. Sidiqullah Khalid expressed his pleasure in participating in this important conference dedicated to the development of Afghanistan's financial sector, especially Islamic banking and microfinance.

He added that praise be to Allah, despite many challenges, the Islamic banking sector is still in a developing and stable condition. Guidelines and frameworks for transitioning from conventional banking to Islamic banking, adapted to Afghanistan's conditions, have been developed by utilizing the experiences of other Islamic countries. The level of public trust in banks is increasing day by day, and inshallah significant steps will be taken soon in the area of financial development.

Mr. Khalid said, "The DAB has relations with several international institutions that work in the field of Islamic finance and banking, and DAB will also utilize the standards, financial products, and training programs of these international institutions, along with the experiences of other Islamic countries, to further strengthen the Islamic banking in the country”.

Mr. Sidiqullah Khalid also stated that microfinance institutions play an important role in diversifying financial products, particularly in providing access to financial products for small businesses, agricultural growth for farmers, facilitating business opportunities for small entrepreneurs, reducing poverty levels, creating job opportunities, and overall contributing to the economic growth and development of the country.

DAB Governor’s Office Director added that the bank has developed and finalized a regulatory framework for the regulation and supervision of this sector. Individuals in all provinces of the country who wish to provide services to the esteemed citizens of the country through microfinance institutions can obtain a license from DAB.

Furthermore, he assured international organizations and donors, for better management, security, and transparency in the mentioned sector, DAB has established a framework for providing services in compliance with laws and regulations according to all the international standards.

Mr. Khalid, during his speech, also highlighted the value of Sukuk in economic development and growth, and he added that significant advancements have also been made in the area of Sukuk, and Sukuk will soon be issued to finance major projects.

It is worth mentioning, that this conference which is organized by the United Nations Development Program under the title of 'Islamic Finance Week of Afghanistan,' In addition to DAB, the conference was attended by representatives from the Ministry of Commerce and Industry, the representative of UNAMA, ambassadors from some countries, private sector representatives, commercial bank representatives, microfinance institutions representatives, and representatives from various other financial and banking institutions. This conference, which will last for four days, will discuss topics related to Islamic finance in Afghanistan, microfinance, job creation, poverty reduction, and financial inclusion.