Jeddah (UNA) – The Islamic Development Bank Institute and the Universal Postal Union signed an agreement to launch a new project called “Prosper MSMEs,” which aims to explore ways to enable national postal networks in the member countries of the Islamic Development Bank to expand access to e-commerce and provide digital financial services that comply with the provisions of Islamic finance for micro, small and medium enterprises and for financially underserved communities.
The agreement was signed by Dr. Sami Al-Suwailem, Acting Director General of the Islamic Development Bank Institute, and Masahiko Mitoki, Director General of the International Bureau of the Universal Postal Union.
Postal networks often reach communities that are not served by commercial banks and private sector logistics providers. Therefore, through this initiative, both parties aim to leverage this extensive infrastructure to help small businesses participate more effectively in the digital economy.
The project aims to explore opportunities for postal service operators to support micro, small and medium enterprises in the field of online sales, facilitate cross-border trade, and provide access to payment and financing solutions that comply with the provisions of Islamic Sharia.
The project will be implemented in two phases in eight selected member countries of the Islamic Development Bank. The first phase will include an organizational assessment, in which the regulatory frameworks governing e-commerce, postal services, digital payments, and Islamic finance in the participating countries will be studied.
In the second phase, the market is analyzed by assessing the obstacles to adopting e-commerce among micro, small and medium enterprises, identifying gaps in financial services, assessing the demand for Islamic financial products, and analyzing the capabilities of existing postal networks in the eight selected countries.
The Islamic Development Bank Institute is financing the project, while the Universal Postal Union is contributing expertise, databases and its global postal network.
The project aims to conduct regulatory and market assessments that will guide the provision of tailored, country-specific technical assistance, managed by postal institutions, in the areas of e-commerce and digital financial services.
It also aims to develop proposals for innovative solutions in the eight selected countries that rely on postal infrastructure in the fields of e-commerce and finance, so as to meet the needs of micro, small and medium enterprises, women and youth, in addition to presenting the results and proposals to cooperating partners, including the Islamic Development Bank Institute, with the aim of mobilizing the necessary resources to begin implementation.
The project will culminate in a comprehensive and unified report summarizing the findings from participating countries and outlining a roadmap for implementation. This set of evidence-based and data-driven projects is expected to support governments, postal service providers, and development partners in expanding access to digital markets and promoting ethical and inclusive finance for small businesses and underserved communities.
(is over)
