BAKU, Azerbaijan, June 16. A gap remains
between the development of Islamic finance and the halal economy,
requiring closer coordination and support for small and
medium-sized business enterprises (SMEs), Chief Operating Officer
at International Islamic Trade Finance Corporation (ITFC), Nazeem
Noordali, said at the 14th Islamic Development Bank (IsDB) Group
Private Sector Forum held in Baku, Trend's correspondent reports from the
event.
Noordali announced that the global halal economy is estimated to
be worth $2.3-2.5 trillion, while the Islamic financial sector's
assets range from $5.5 to $6 trillion and, according to him, could
grow to $7.5 trillion in the next two to three years.
He noted that, despite this scale, a gap remains between the
financial sector and the real economy of the halal industry.
"We see a certain gap between financial strength and the real
economy, and we need to find ways to better align financing with
the development of the halal economy," the official explained.
He noted that the halal economy includes, in particular, sectors
such as food, pharmaceuticals, tourism, and manufacturing.
Noordali pointed out that SMEs need not only access to financing
but also technical support and capacity building.
He also announced that SMEs are the backbone of the economy,
regardless of industry, including the halal sector.
The official further said that one of the key challenges facing
SMEs is the lack of collateral, which limits their access to
financing.
"The financing gap for SMEs is estimated at approximately $2.5
trillion.
To develop the halal economy, closer cooperation between
government agencies, financial institutions, and businesses is
necessary to narrow the existing gap between Islamic finance and
the real economy," he added.
