The General Council for Islamic Banks and Financial Institutions (CIBAFI) and the World Bank have signed a memorandum of understanding (MoU) to foster the development of Islamic finance globally.

The MoU also aim to expand the use of Islamic finance as an effective tool for financing development worldwide, including in non-Muslim countries

Bothe the institutions have agreed to cooperate in the areas of knowledge generation and dissemination; distilling and sharing lessons of experience; encouraging research and promoting awareness; and enhancing capacity in the Islamic financial services industry.

Commenting on the agreement, Abayomi Alawode, head of Islamic Finance, Finance & Markets Global Practices at World Bank said: "As the industry expands, it will inevitably impact the way global finance evolves to support real sector economic activity and contribute to addressing the challenges of ending extreme poverty and boosting shared prosperity.

"We look forward to working closely with CIBAFI to strengthen the institutional foundations of Islamic finance, enhance regulatory and supervisory frameworks, and share sound practices and lessons of experience in the industry, including sound practices relating to business practices, risk management and market development"

CIBAFI secretary general Abdelilah Belatik said: "This partnership will strengthen CIBAFI’s role as the ‘voice’ of the industry and advocate for the Islamic financial services industry with other international organizations, international standard-setting organizations and regulatory and supervisory authorities as well as support its strategic objectives – Research and Publications as well as Awareness and Information Sharing."

CIBAFI is the global umbrella of Islamic financial institutions advocating for Islamic financial institutions and promoting the role of Islamic finance.