Awards for ethics and innovation presented
Abu Dhabi, November 27, 2013
A crowd funding organisation in Egypt and a UK-based Islamic financial advisory have won the inaugural ethics and innovation awards presented by Abu Dhabi Islamic Bank (ADIB) and Thomson Reuters.
The awards, which address issues of ethics in finance and innovation in Islamic banking and offered prizes of up to $100,000, drew interest from hundreds of individuals and institutions in 55 countries, with interest highest in the UAE, Pakistan, Malaysia, the UK and US.
Six finalists presented their entries at the Global Islamic Economy Summit (GIES) recently held in Dubai, with the winners chosen by a panel of judges and voting by over 1,000 delegates.
Shekra Sharia Compliant Crowd-funding won the $50,000 Finance Initiative Award. The organisation funds SMEs, which are often too big for microfinance and too small for venture capital and private equity. Shekra combines the advantages of conventional crowd-funding, angel investing, venture capitalism, as well as, philanthropic contributions and mentorship provisions.
Shaher Abbas of IFAAS won the Islamic Finance Innovation Development Award. It proposed a new approach to supplying companies with working capital, overdrafts and project finance.
The model is based on the Islamic financial principle of Mudaraba, a contract based on a partnership in which one partner is the investor and the other is a working partner who manages the investment. The structure uses a set of control functions to reduce the inherent risks of Mudaraba financing solutions, allowing a client to utilise any amount of funds up to an agreed limit at very low transaction costs.
“Since the global economic crisis, the world has been searching for a new economic model, which gives investors the incentive to supply capital, while serving the broad interests of society – improving lives, and our environment,” said ADIB chief executive officer Tirad Al Mahmoud.
“These awards are just another small step in the right direction, and I hope they help to encourage the development of sustainable financial solutions that make a positive difference in the world. These winners, and indeed all the entries, have shown that the answers are out there, and we now need to start putting them into action.” - TradeArabia News Service