The MoU was signed today at INCEIF’s Kuala Lumpur campus by INCEIF President and CEO Daud Vicary Abdullah and IFRC’s Under Secretary General for Partnerships, Tan Sri Dr. Jemilah Mahmood.
The partnership aims to explore and expand ways Islamic Social Finance can be used as a tool to help 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.
“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."
Dr. Mahmood 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. Mahmood 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.’”
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.
INCEIF was set up by Bank Negara Malaysia in 2005 to develop human capital and knowledge leadership for the global Islamic finance industry. Apart from its academic programmes, which are Masters of Islamic Finance Practice, MSc in Islamic Finance and PhD in Islamic Finance, INCEIF also offers customized executive training programmes and industry-focused applied research in line with its vision to be the knowledge and thought leader in Islamic finance. Since 2015, INCEIF’s research has been ranked 1st in Malaysia among the higher education institutions in the Research Papers in Economics (RePec) rankings. We are also the only institution to have the research of five professors recognized by RePec, among the top 30 academics in Malaysia. We are ranked 40th in Asia as a university. Within the Financial Economics & Finance Department category, defined by REPEC, we are ranked 30th in the world.
INCEIF’s curriculum, developed from its research and with practical subject expertise from industry players, is used and adopted worldwide by various academic institutions. INCEIF faculty members, who are globally respected among the Islamic finance academia and industry, have a combined wealth of experience and diversity. For more information, please visit www.inceif.org
The International Federation of Red Cross and Red Crescent Societies is the world’s largest volunteer-based humanitarian network, reaching 150 million people each year through its 190 member National Societies. Together, the IFRC acts before, during and after disasters and health emergencies to meet the needs and improve the lives of vulnerable people. It does so with impartiality as to nationality, race, gender, religious beliefs, class and political opinions. The IFRC headquarters is based in Geneva and its Asia Pacific regional office is based in Kuala Lumpur. For more information, visit www.ifrc.org.