MCIF introduces a model to provide Islamic finance services through local councils

Maldives Center for Islamic Finance (MCIF) has introduced a model to provide Islamic finance services through the local councils established in the islands. This model will enable local councils to invest their funds according to Islamic shariah in projects that would generate revenues for the development of the local community.

The Islamic finance services model was formulated by MCIF based on the data collected from 98 local councils and the already existing Islamic finance services methods used in other countries. It was presented as a research paper at the International Conference on Islamic Awakening held at the Islamic University from 23rd to 24th of September 2017.

According to the MD Mr. Ibrahim Didi, this model was designed by MCIF to cater to the increasing interest of the local councils to find a suitable investment model that would fit into Islamic Shariah standards. He believes that a large number of councils wishes to invest their funds but are not doing so due to a lack of such a model and that within the next couple of months at least one council will start the process of investing.

The Islamic Finance Services model can be implemented by the councils on their own or in collaboration with MCIF. Either way, MCIF will be providing assistance such as staff training, Shariah advisory and supervision.