Islamic microfinance implementers plan to strengthen local Shari’ah advisory boards

Three Moro organizations implementing Islamic microfinance planned how they can help strengthen local Shari’ah advisory board in their will to help develop Shari’ah compliant financing in Mindanao.

The planning session was held during the meeting of of Katiyakap, Kadtabanga and Federation of United Bangsamoro Women’s Multi-Purpose Cooperative held at Tacurong City last December 29, 2016.

The three organizations have been facilitating the implementation of microfinancing that adheres to Islamic principles in Maguindanao and Socsargen area targeting poor Muslims households.

Among the mechanism the Islamic microfinancing implementers plan to do is to increase the membership of the local Sharia Advisory board and help them in the registration with the Securities and Exchange Commission.

The local Sharia Advisory board are group of local Ulama (Islamic scholars) that will serve as consultants to the Muslim organizations or individuals practicing Islamic financing.

The board can guide the Islamic financing practitioners if the method of the implementation of financing conforms with or veers away from the tenets of Islam.

The three groups also outlined the capacity-enhancement trainings and study exposure for the members of the Shariah board.

Along with Halal industry development, Islamic financing is one of the areas the government considers to develop through legislative measure in order to draw Muslim investors to put up capitalization in the country.

There are bills in Senate and House of Representatives that propose the development of Islamic financing by allowing the establishment of Islamic banks in the country.

The National Commission on Muslim Filipinos has already hosted two International Islamic Conferences in Manila drawing international experts to give inputs to local stakeholders to plan for the development of Islamic financing in the Philippines.

Mindanao Development Authority also hosted recently an Islamic financing consultation at Davao City. 

Islamic financing is free from Riba (interest), gharar (uncertainty) and business transactions involving Haraam (forbidden) items.