Report on Two Days Specialized Training Workshop on Islamic Microfinance

16th & 17th September, 2012 in Sheba Hotel, Sanaa, Yemen

Jointly Organized by:

AlHuda Centre of Excellence in Islamic Microfinance

Yemen Microfinance Network

Supported by:

Prepared by:
Ali Abutaleb Yemen Microfinance Network Sanya Ali Ahmad AlHuda Centre of Islamic Banking and Economics

INDEX

Contents
Introduction About the Organizing Parties Speakers of the Workshop Participants of the Workshop Training Workshop Agenda Synopsis of the Training Impact Analysis of the Training Workshop Participants Overall Evaluation of the Workshop Suggestions and Recommendations

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INTRODUCTION
Overall, social and economic circumstances in Yemen create a homogenous traditional society where many decisions are influenced by the religious considerations. So, Islamic Microfinance would be highly accepted there and would ultimately help in reducing poverty of Yemen. Islamic Microfinance is an emerging market in the field of Islamic finance. So, there is an immediate need to educate, train and conduct market study and awareness campaigns on this subject. The aim of this training is to provide edification and trainings to Microfinance & Finance Professional with an additional opportunity for their educational uplift under Islamic financial system. An individual would be able to learn new techniques and opportunities in this field. The event was jointly organized by the Yemen Microfinance Network and AlHuda Center of Islamic Banking and Economics - Pakistan. The training was lead by international experts and was open to participants from regional and international countries as well as local MFI and commercial bank practitioners.

ABOUT THE ORGANIZING PARTIES

About AlHuda Centre of Islamic Banking and Economics (CIBE) AlHuda Center of Islamic Banking and Economics (AlHuda CIBE) is a well established name in Islamic financial Market which is working in the field of Islamic Banking and Economics from the last 7 years in Pakistan and around the globe. It is the pioneer organization to start effort for the promotion of Islamic Banking and Finance in masses through Advisory and Consultancy, Education, Trainings, Awareness, Product Development and Publications. About Yemen Microfinance Network (YMN) The Yemen Microfinance Network (YMN) is a member based association registered in 31st August 2009 under the Ministry of Social Affairs and Labor as a non-governmental organization (NGO), having its own board of directors consisting of the microfinance member institutions. Being a member-driven association, YMN three year strategy was developed in a very detailed, comprehensive and systematic process.

SPEAKERS OF THE WORKSHOP

The master trainers and speakers of the training were: Mr. Qazi Abdul Samad and Mr. Zubair Mughal. The profile of the speakers is as follows: Qazi Abdul Samad Qazi Abdul Samad is a skilled professional with proficiency in Shariah advisory, In-depth knowledge of Shariah Microfinance, Innovative, commitment & pro-active approach to work, Strong communications & analytical skills and able to manage and train others. Currently, he is working as a Shariah Advisor of The Bank of Khyber - Pakistan. He is also a visiting lecturer of Islamic Financial System in Management Science Department of City University, Peshawar. He has been providing Shariah advisory and supervision in many organizations. He is an author of many articles and has presented articles in many International conferences. Muhammad Zubair Mughal Muhammad Zubair Mughal is a passionate and hardworking individual with a strategic vision in Islamic Micro Finance. He is a skilled Islamic financial professional and a keen learner of Islamic Microfinance and Islamic Micro insurance with good public speaking and training skills. He is currently working as a Chief Executive Officer of AlHuda centre of Islamic Banking and Economics. He has a professional experience Islamic Microfinance of over 10 years. He has development Many Islamic Microfinance Products which are being utilized in Pakistan, Middles East & Africa, he has also presented his research papers on Islamic Microfinance in many International conferences in South Africa, China, Kazakhstan, Russia, Kenya, Pakistan, U.A.E, Mauritius, Afghanistan, Turkey, Tatarstan, Jordan and Iraq etc.

PARTICIPANTS OF THE WORKSHOP

Yemen is an emerging market in terms of Islamic Microfinance. It has a rich Islamic history and the demand of Islamic Microfinance is growing very rapidly there. Yemen has a
population size of 23 Million, one of the most ethnically homogenous in the region, with 3% population annual growth rate. 71% of the population lives in the rural and 29% in urban areas. 34.8% live below the poverty line. Overall, social and economic circumstances in Yemen create a homogenous traditional society where many decisions are influenced by the religious considerations. So, Islamic Microfinance would be highly accepted there and would ultimately help in reducing poverty of Yemen.
A Memorable Group Photo of all the Participants

The targeted audience for this training workshop was Microfinance Professionals and Experts, Microfinance Institutions & Banks, Financial & Banking Institutions, Rural & Agri. financial Professional, Community Developments, NGOs and NPOs, Insurance Companies, Development Consultant, Management Consultants, Social Development Sector, Govt. Development Departments, Local and International Donor's Agencies, SMEs & Corporative Societies, Academia, Philanthropists and Investors, Regulators and Govt. Officials, Shari'ah Scholars and Experts. In this connection, the persons, who has participated the training workshop are:

No. Name
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Ms. Faiza Abdo Saeed Mr. Jihad Al-Hakimi Ms. Nasaim Mohammed Algonaid Ms. Somaia Ezzadin Ms. Nagwa Fadil Ms. Hind Kassim Alawi Ali Mr. Omer Abdul Haleem Mr. Fahmi Al-Kuraimi Mr. Ahmed Alhumiqani Mr. Khalil Almikhlafi Mr. Abdulrahman Alazazi Mr. Nabil Ali Al-Shehaly Mr. Hani Al Fakih Mr. Mutlaq Al-Osaimi Mr. Moammar Shuhait Mr. Ali Abutaleb

Organization
Economic Opportunities Fund Economic Opportunities Fund Alawael Microfinance Company Alawael Microfinance Company Aden Microfinance Foundation Social Fund For Development Social Fund For Development Alkuraimi Islamic Microfinance Bank Yemen Microfinance Network Yemen Microfinance Network Yemen Microfinance Network Alamal Microfinance Bank National Microfinance Foundation National Microfinance Foundation National Microfinance Foundation Yemen Microfinance Network
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TRAINING WORKSHOP AGENDA

The agenda of the training workshop is as follows:
Mr. Mohammed Saleh Al-Lai, Chairman Yemen Microfinance Network Mr. Osma Al Shami Head of SMED Social Fund for Development - Yemen Najah Almugahed, Acting Managing Director Yemen Microfinance Network A Glance on Islamic Finance Economic Rationale for Prohibition of Riba Shariah Foundation and Applications of Islamic Microfinance Islamic Micro Finance as an effective tool of poverty alleviation Islamic Micro Financial Products Mechanisms & Compatibility with Conventional Microfinance Products Source of Islamic Microfinance Products Islamic Microfinance Institutions Worldwide Need Assessment of Islamic Microfinance Opportunities & Challenges Faced by IMF Sector A Case study from Pakistan Islamic Microfinance Product Mechanism, Structures, Operations & Applications. Partnership Modes of Islamic Microfinance Liability (Deposit) Management Techniques for Islamic Microfinance Trade Based Modes of Islamic Microfinance Parallel Salam & Istisna Islamic Microfinance Product Mechanism, Structures, Operations & Applications Micro Takaful (Islamic Micro Insurance) Definition of Takaful. How Micro Takaful products works with Islamic Microfinance Structure, Operation and Performance of Takaful for Poverty Alleviation Opportunities and Challenges of Micro Takaful in Islamic Microfinance Definitions, Concept & Uses of Waqf, Qarz-e-Hassan, Cooperatives & Zakat in Islamic Microfinance system

Welcome Address and Inauguration

Topics Discussed by the Speakers: Mr. Qazi Abdul Samad &

Mr. Muhammad Zubair Mughal

SYNOPSIS OF THE TRAINING

The training session was inaugurated by Mr. Mohammed Saleh Al-Lai, Mr. Osma Al Shami Najah Almugahed. While addressing to the audience of training workshop, Mr. Mohammed Al Lai said: I am so proud to be a member of YMN as a Chairma n. I have had the privilege of working with dedicated and talented employees who make our Network an innovative and successful institution. It gives me immense pleasure to present the Islamic Microfinance and Islamic Finance training workshop that is held with cooperation of (AlHudaCIBE) Center of Islamic Banking & Economics of Pakistan. It is clear that the demand for Islamic finance has increased which is a major opportunity for the growth Mr. Mohammed Saleh Al-Lai Chairmen Yemen Microfinance of the industry and gets awareness Network speaking at Inaugural Session about it from highly learned and experienced professionals and be the leaders of Islamic Microfinance in Arab region. Therefore we are keen in promoting the awareness of Islamic Microfinance among the region. More than ever, we extend our best wishes for the success of the training and the ultimate benefit for all the Yemenis from the wide spreading Microfinance Industry. Mr. Mr. Osma Al Shami presented his views by saying that it is an excellent opportunity to spread the knowledge and awareness about Islamic Microfinance in Yemen that will ultimately benefit the masses. He said that the training workshop will provide a lot of opportunities to gain knowledge about global practices on Islamic microfinance through learned national and international scholars Technical Session of the Training and experts. Ms. Najah Almugahed appreciated the arrangement of two days workshop on Islamic Microfinance, a good step for the Microfinance sector. She said that Islamic Microfinance is rapidly growing in Yemen and the workshop like this will provide more awareness about it.
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Two days training went too smoothly. All the participants went satisfied. At the end of the training session, Mr. Zubair Mughal presented the souvenir to Ms. Najah Almugahed for initiating this step with AlHuda CIBE. YMN showed its wish to repeat this training workshop on annual basis. At the end of the training, logo inauguration ceremony of Islamic Microfinance was conducted in which Logo of the forum was inaugurated by Ms. Najah Almugahed. While addressing to the inaugural ceremony, Ms. Najah Almugahed appreciated the step of AlHuda CIBE to organize Global Islamic Microfinance Forum and said that the Mr. Zubair Mughal presenting Souvenir to Ms. microfinance industry would be more established Najah Almugahed through this Forum. While addressing to the inaugural ceremony, Chairman of Yemen Microfinance Network - Mr. Al-Lai has declared the strategy of AlHuda CIBE for the promotion of Islamic Microfinance as a very good step for the industry which will amplify the awareness and promotion of Islamic Microfinance.

IMPACT ANALYSIS OF THE TRAINING WORKSHOP

As Islamic Microfinance is already a distinguished and strong field in Yemen so this training workshop has added new horizons and dimensions in this field. The basic aim was to see how the integration can be made in between the existing products of Islamic Microfinance in Yemen and other related products. It was indeed a learning session. It will surely create product understanding and the participants would share the knowledge gained through this session which will help in uplifting of their living standards and would help in reducing poverty of Yemen. It will surely enhance the expertise of working in this field and would increase the capabilities and capacities to work for it. The attendees of this training gained Indepth Knowledge of Islamic Microfinance, learnt new Techniques of Poverty Alleviation, Social Development & Financial Inclusion through Islamic Microfinance. They saw the Shariah Principles and Mechanism about Islamic Microfinance and got an Opportunity to gain knowledge about global practices on Participants during the training Session Islamic microfinance through learned national and international scholars and experts. The event should have a strong impact on the outreach of Islamic Microfinance in Yemen and the region as an effective tool to alleviate poverty.

Success Indicators of the training

The positive evaluation results by participants Positive perception of the event by organizations related to microfinance industry in Yemen. The level of attendance and interaction Provision of real life case studies and examples The included literature and reading material The high levels of trainees interactivity with trainers Very well organized event The event venue Positive atmosphere throughout the event

Obstacles & Challenges

The relatively short available time for the workshop, which meant that high loads of information and rich material had to be squeezed to fit the time frame The security situation especially because of the attacks on the US Embassy in Sanaa by demonstrators before the workshops date prevented other international participants from travelling to Sanaa to attend the event. The fact that most MFIs in Yemen are utilizing one or two types of IMF products but mostly (Murabaha)

PARTICIPANTS OVERALL EVALUATION OF THE WORKSHOP

Participants of the training workshop liked the training and the feedback was very positive and encouraging. Participants overall evaluation for the training workshop is summarized as a chart positioned below:

Training package Content and integration of Organization

Training hall
Timing Coffee break and Lunch Cleanliness Relationship with colleagues Reflection on current job Training methods Willingness to attend similar Overall course evaluation
0.00% 20.00% 40.00% 60.00% 80.00%100.00%

Weak Acceptable Average Good Excellent

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SUGGESTIONS AND RECOMMENDATIONS

For the betterment of the next training workshop, following suggestions and recommendations are to be taken under consideration: To organize similar but longer training workshops and target larger potential segment of participants from different organizations, practitioners, and funding donors. To better coordinate with the governmental bodies, i.e. (Central Bank of Yemen) to better publicize the event and build awareness of IMF products and solutions.

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