São Paulo – The World Bank and the Islamic Development Bank are going to work together to develop Islamic finance around the world. According to a memorandum of understanding signed last Sunday (14th) by the two institutions, the strengthening of this segment by encouraging people to use its services will help countries and companies in their development.
The agreement provides for the execution of projects aimed at growth and inclusion, and the conduction of research on Islamic finance management and services training, aiming to promote monetary stability and increase access to said services.
According to the World Bank, the amount of business done in accordance with Islamic financial rules is on the rise. As of 2010, Islamic finance assets worldwide amounted to US$ 1 trillion. By the end of the 1980s, the figure was no higher than US$ 5 billion. The institution estimates that assets amounted to US$ 1.2 trillion as of 2011.
Islamic finance stipulates, for instance, that an Islamic bank cannot charge interest on its loans, nor should it pay interest in order to raise funds. It cannot fund projects relating to gambling, alcohol, or weapons either. Its assets must originate mainly from productivity, not speculation.
*Translated by Gabriel Pomerancblum
