The Clap
The FRA issued the first Islamic microfinance license to Maksab, an Egyptian microfinance company.
The Deets
Dr. Mohamed Farid, president of the FRA, said that the new license provides new dimensions to the existing means of financing, by introducing a new term, “Wakala bil Istithmar”.
What is Wakala bil Istithmar?
Wikala bil istithmar is a form of Islamic finance where the agent (wakil) is authorized by the investor to invest a certain amount of the agent’s funds, in return for a specified fee or percentage of the money that has been invested.
Why this Matters
Dr. Mohamed Farid said that the FRA wants to issue approvals for new products in financing, using Islamic finance.
First Islamic microfinance license in Egypt 🏦
