Kigali (Rwanda): Islamic Finance provides an ideal mechanism to facilitate agricultural, irrigation, livestock, micro & rural financing products and boost the green economy, said Muhammad Zubair Mughal, the Chief Executive Officer of Al Huda Center of Islamic Banking and Economics (CIBE), Reuters reported Wednesday.
During his speech at the Best Practices in Rural & Agricultural Finance in Kigali, Republic of Rwanda, he stated that Islamic finance does not only provide a sustainable solution, but creates a positive economic impact in lives of the farmers and rural communities as well.
Addressing the audience, Mughal stated that the impact of Islamic Finance products is more significant than any other due to the uniqueness of its features.
He added that Islamic Finance products could be utilized in many ways for the development of agricultural, rural, and micro-financing.
Referring to ‘Murabaha’ and ‘Salam’, he said the systems could be utilized to purchase seeds, fertilizers, harvesting and planting equipment, tractors, pesticides, and other farming goods. As for ‘Istisna' financing, Mughal said it could be utilized for small businesses, while ‘Ijara’ is suitable for leasing equipment.