Majid Dawood From Yasaar Group, on the Role of Islamic Finance in Boosting Trade

Islamic finance, with its unique principles and ethical framework, holds significant potential to boost trade and enhance financial inclusion. Today, we have the privilege of hearing from Mr. Majid Dawood, a prominent figure in the Islamic finance industry, for his expert insights on these crucial topics.

Mr. Dawood’s extensive experience includes

• Leading Yasaar Research Limited: Since 1998, he has helmed Yasaar, a UK-based consultancy providing Sharia-compliant solutions to Islamic banking institutions globally.
• Pioneering Islamic Finance: Mr. Dawood established the first Islamic leasing company in Pakistan in 1992, demonstrating his early commitment and expertise in the field.

Mr. Dawood’s insights are likely to shed light on the following:

1. Islamic Finance and Trade

• Trade finance instruments: He might discuss how Islamic financial instruments like Sukuk (Islamic bonds) and Murabaha (cost-plus financing) can facilitate trade by providing ethical and Sharia-compliant alternatives to conventional financing options.
• Risk mitigation: He could explore how Islamic finance principles, such as risk sharing and profit-and-loss sharing, can potentially mitigate risks associated with international trade.
• Promoting economic development: Mr. Dawood might delve into how Islamic finance can support the development of infrastructure and small and medium-sized enterprises (SMEs), ultimately boosting economic growth through increased trade activity.

2. Enhancing Financial Inclusion

• Reaching the unbanked: Mr. Dawood could discuss how Islamic financial products and services can be designed to cater to the needs of unbanked populations who may be excluded from traditional financial systems due to religious or ethical considerations.
• Microfinance solutions: He might explore the potential of microfinance within the Islamic finance framework, providing Sharia-compliant financial resources to individuals and small businesses, fostering financial empowerment and poverty reduction.
• Regulatory frameworks: He may touch upon the importance of developing supportive regulatory frameworks that encourage innovation and ensure accessibility of Islamic financial products and services for diverse segments of society.

By drawing upon Mr. Dawood’s expertise and experience, we can gain valuable insights into how Islamic finance can play a transformative role in fostering economic growth, promoting ethical trade practices, and ultimately achieving greater financial inclusion.