IsDB Launches Comprehensive Islamic Microfinance Toolkits to Boost Financial Inclusion

The Islamic Development Bank Institute (IsDBI) and the IsDB Global Practice & Partnership (GPP) Directorate, through its Cooperation and Capacity Development Department (CCD), have launched a five-volume series of Islamic Microfinance Toolkits, designed to strengthen inclusive financial systems across IsDB Member Countries.

The new toolkits provide a practical and comprehensive roadmap for establishing, operating, monitoring, and regulating Islamic microfinance institutions, supporting the growth of sustainable, Shari’ah-compliant financial services.

Developed through extensive research, field experience, inter-departmental collaboration, and stakeholder consultations, the revamped toolkits aim to help policymakers, regulators, and practitioners unlock the full potential of Islamic microfinance to reduce poverty, encourage entrepreneurship, and promote sustainable economic development.

Dr. Sami Al-Suwailem, Director General of IsDBI, said, “Islamic microfinance, grounded in principles of fairness and risk-sharing, is a vital tool to enable the poor to participate in economic activity with dignity and purpose. These toolkits provide concrete steps for stakeholders to build inclusive financial systems that reflect both the spirit and substance of Islamic finance.”

Dr. Issa Faye, Director General of GPP, added, “This joint initiative reflects our collective commitment to support member countries in strengthening their financial inclusion strategies. By providing technical guidance and practical models, we aim to empower institutions to design scalable, context-sensitive Islamic microfinance solutions. I would like to sincerely commend both the current team behind these toolkits and the previous colleagues from various business units who contributed to their development.”

The five-volume series offers the following guidance:

• Book 1 – Concepts, Business Models & Products: Introduces core Islamic microfinance principles, business models, and product structures.

• Book 2 – Establishing a Shari’ah-Compliant Entity: Provides guidance on strategic planning, governance, financial feasibility, and Shari’ah compliance.

• Book 3 – Integrating Islamic Finance into Agricultural Value Chains: Focuses on financing agricultural value chains using Islamic financial instruments, illustrated with case studies.

• Book 4 – Monitoring and Evaluation of Performance and Outcomes: Offers frameworks and indicators to assess financial, social, and Shari’ah performance.

• Book 5 – Regulations and Supervisory Guidelines: Presents a model regulatory framework covering governance, licensing, risk management, and Shari’ah oversight.

The launch of these Islamic microfinance toolkits marks a significant step in enhancing financial inclusion, poverty alleviation, and entrepreneurship development in IsDB Member Countries.