03/09/2015 15:00 AST
The Islamic Research and Training Institute (IRTI) has presented findings of two Islamic Social Finance Reports during a roundtable organized by the United Nations' World Humanitarian Summit (WHS) Secretariat in New York.
The roundtable was held on August 25 at the U.N. Headquarters, to explore the possibility of using Islamic social finance, which includes zakah and awqaf, to bridge the funding gap for humanitarian activities around the world.
IRTI Director General, Prof. Mohamed Azmi Omar, and Senior Research Economist, Dr. Nasim Shah Shirazi, presented findings of the reports, which studied the trends and potentials of the sector in South Asia, South-East Asia and Africa.
The reports identified how Islamic social finance could be better utilized to tackle poverty and other needs of the poor. Findings show that zakah alone, if fully institutionalized, has the potential of wiping out poverty in most of the countries surveyed.
Prof. Omar explained that the Islamic Development Bank (IDB) has approved channeling of Islamic social finance funds towards helping people in fragile and conflict states. The funds would be used to rebuild education, healthcare, sanitation, public facilities, public works, electricity, municipality, transportation and housing in the affected countries.
Earlier, WHS chief, Dr. Jemilah Mahmood, explained that the roundtable was convened to explore alternative funding sources for humanitarian activities, following an increase in the funding gap to USD7 billion in 2014. She said that there is need to tap into Islamic social finance.
Firas Kayal of the U.N. refugee agency UNHCR noted that the world would get rid of poverty if only 5 percent of people pay zakah as due.
The roundtable recommended consensus building for the utilization of Islamic social finance funds for humanitarian services; formation of zakah and waqf standards governing board; and establishing regional and global zakah and waqf institutions. Thirty-four participants, including from the IDB, World Bank, U.N. agencies, and NGOs, attended the roundtable.
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