The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org), the private sector arm of Islamic Development Bank (IDB) Group (www.IsDB-pilot.org), signs today a Memorandum of Understanding (MoU) with JANA Bena'a Productive Families (www.JANA-SA.org) of Saudi Arabia in order to test a new banking model named "Biniog Sathi".
With the signing of the MOU, both parties agreed that JANA will be incorporating the new model as a test case in its Qarde Hasanah Programme, which is now being operated in different parts of Saudi Arabia.
Mr. Khaled Al-Aboodi, the CEO & General Manager of ICD and Mr. Mohammed Al Khamis, the Chairman of JANA Bena'a Productive Families signed the MOU on behalf of their respective institutions.
"Biniog Sathi", meaning "Friend in Investment" in Bangla, is a new generation banking model developed by ICD that will resolve the problem of credit default in the banking industry with the help of Zakat and Sadaqa. The model is based on Islamic Finance principles and it will make Islamic Banking more competitive.
During the signing event, Mr. Khaled Al Aboodi, the CEO of ICD said, "This is the first pilot test to be conducted under the model in Saudi Arabia and we believe the test will be successful in order to run a full-fledged operation in the future in sha Allah."
Mr. Mohammed Al Khamis, the CEO of JANA Bena'a Productive Families said, "This signing of the MOU will strengthen our ongoing Qarde Hasanah Programme, and I believe this new model will be highly beneficial for those who are in need."
The signing ceremony was also attended by Mr. Mabroor Mahmood, Principal-Term Finance of ICD, Mr. Bassem Khanfar, Microfinance Advisor of ICD, and Mr. Mahmood Al Shami, the Executive Director of JANA Bena'a Productive Families.
About the Islamic Corporation for the Development of the Private Sector (ICD)
ICD (www.ICS-PS.org) is a multilateral organization and a member of the Islamic Development Bank (IDB) Group (www.IsDB-pilot.org). The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia'a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody's. For more information, visit www.ICS-PS.org.
About JANA Bena'a Productive Families
JANA Bena'a Productive Families Centre (www.JANA-SA.org)is an initiative by Sh. Sulaiman Al Rajihi, which provides interest free loans to support women in starting their own businesses to create a better future for the productive families and support the Kingdom's 2030 vision.
JANA provides interest-free loans along with other Islamic financial services, and rehabilitation services for low-income women to improve their status of living by creating a unique and effective practices of microfinance.