AlHuda CIBE Strengthens Islamic Finance Initiatives Across the Caribbean
Dubai, UAE: AlHuda Centre of Islamic Banking and Economics (AlHuda CIBE) has launched a significant initiative aimed at promoting Shariah-compliant financial solutions throughout the Caribbean. Mr. Muhammad Zubair Mughal, the Chief Executive Officer of AlHuda CIBE, recently completed an extensive tour of North America and the Caribbean, visiting Trinidad and Tobago, Barbados, and Saint Vincent and the Grenadines. The primary objective of this visit was to evaluate the current landscape of Islamic finance, identify potential growth opportunities, and establish strategic partnerships with financial professionals, regulatory authorities, and development organizations in these nations.
Current State of Islamic Finance in the Caribbean
The Caribbean, which consists of 33 political entities, has traditionally operated within a conventional banking system. As global Islamic finance assets reached USD 5.2 trillion in 2025, with a projected growth rate of 14.9% year-on-year, the Caribbean remains largely uncharted territory for this sector. Currently, Shariah-compliant financial products are fragmented and primarily cater to Muslim diaspora communities. Notably, no Caribbean government has yet enacted comprehensive legislation to support Islamic banking. Awareness of key financial instruments such as Murabaha, Musharakah, Ijarah, and Sukuk is limited among policymakers and financial professionals, which hinders the sector’s potential to contribute to regional economic development.
Untapped Potential for Islamic Finance
Despite the current limitations, the Caribbean presents significant untapped potential for Islamic finance. The region’s Muslim population, which constitutes approximately 5% in Trinidad and Tobago and up to 13% in Guyana, along with a growing demand for ethical financial alternatives, creates a favorable environment. Furthermore, the infrastructure financing needs of 29 Caribbean small island developing states (ECLAC) align with the capabilities of Islamic finance. In 2025, global Sukuk issuances exceeded USD 264 billion and are expected to continue growing, driven by sovereign borrowing and infrastructure requirements, which Caribbean nations are well-positioned to utilize.
Islamic microfinance has the potential to enhance financial inclusion for small businesses and underserved communities. Additionally, Takaful can address existing insurance gaps, while sectors of the halal economy—such as tourism, agriculture, and food production—provide natural entry points for Shariah-compliant financial products. The Caribbean’s climate resilience agenda also aligns well with green Islamic finance instruments, paving the way for collaboration with Gulf Cooperation Council (GCC) investors and the Islamic Development Bank (IsDB).
Insights from Mr. Muhammad Zubair Mughal
Mr. Muhammad Zubair Mughal highlighted the extraordinary potential for Islamic finance in the Caribbean, noting that the region remains largely unexplored by the global industry. He expressed optimism about the openness of financial institutions, government bodies, and business communities encountered during his visits. He emphasized that Islamic finance offers ethical, inclusive, and sustainable solutions that are well-suited to address challenges such as financial exclusion, infrastructure financing, and the growth of small and medium-sized enterprises (SMEs).
During his tour, Mr. Mughal engaged in strategic discussions with central bank officials, banking professionals, economic policymakers, and development organizations across the three nations. These meetings explored the feasibility of establishing Islamic banking windows and standalone Islamic financial institutions, while also identifying sector-specific opportunities for deploying Shariah-compliant products.
Strategic Roadmap for Islamic Finance in the Caribbean
AlHuda CIBE’s strategic roadmap for the Caribbean focuses on four key pillars:
- Regulatory Advocacy and Policy Dialogue: Developing enabling frameworks for Islamic finance.
- Capacity Building: Offering specialized training and professional certification programs.
- Industry Promotion: Conducting conferences, media campaigns, and public awareness initiatives.
- International Collaboration: Partnering with global Islamic finance bodies, GCC institutions, and multilateral development partners to channel Shariah-compliant investments into the Caribbean.
About AlHuda CIBE
AlHuda Centre of Islamic Banking and Economics (CIBE) is a recognized leader in the Islamic banking and finance sector, specializing in research, advisory consultancy, and education. The institution provides a variety of services, including Islamic financial product development, Shariah advisory, training workshops, and consultations in Islamic microfinance and Takaful. For over twelve years, AlHuda CIBE has committed itself to serving the global community, having operated in more than 104 countries to advance the Islamic banking and finance industry.
For more information about AlHuda CIBE, please visit AlHuda CIBE.
For media inquiries, please contact:
Ms. Shaguftta Perveen
Manager Communications
info@alhudacibe.com
Source: www.zawya.com
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Published on 2026-06-22 15:39:00 • By the Editorial Desk
