COTABATO CITY – December 2, 2024
In a significant step towards enhancing the region’s socioeconomic and financial landscape, the Bangsamoro Government officially launched the Islamic Finance Roadmap at the Bangsamoro Government Center.
The roadmap, spearheaded by the Ministry of Finance, Budget, and Management (MFBM), is a comprehensive framework aimed at developing an integrated halal economy in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Spanning five chapters, it outlines strategies, enabling mechanisms, and operational plans designed to ensure its seamless implementation.
BARMM Chief Minister Ahod Ebrahim highlighted the initiative’s importance in positioning Islamic finance as a key driver of economic growth in the region.
“This comes in the most timely manner when Islamic finance is starting to gain traction in the Philippines as a viable alternative to interest-based conventional financial systems,” Ebrahim said. He stressed that principles such as justice, equity, and transparency set Islamic finance apart, prohibiting practices like riba (interest), gharar (uncertainty), and maysir (gambling), in adherence to Shariah law.
MFBM Minister Atty. Ubaida Pacasem emphasized the roadmap’s alignment with the principles of Moral Governance, stating, “This roadmap is our comprehensive blueprint to develop a functional and operational Islamic finance system in BARMM by 2028. It holds immense potential to address the unique financial and economic challenges of our region.”
Broad Sectoral Support
The launch saw participation from various sectors, including government agencies, non-government organizations, development partners, private businesses, religious groups, and the academe, all pledging their support for the initiative.
Bangsamoro Mufti Abdulrauf Guialani, Chairperson of the Bangsamoro Dar’ul Ifta (BDI), reaffirmed the alignment of Islamic finance with the teachings of the Qur’an and Sunnah. “Islamic values and principles are fundamental pillars for the stability and growth of the region, including financial and economic justice for society,” he said.
World Bank Country Director Zafer Mustafaoğlu lauded the initiative’s potential, noting, “Islamic Finance is vital in advancing commercial financing worldwide – it could significantly contribute to BARMM’s economic objectives and targets.”
Kohei Hori, JICA Project Formulation Advisor for BARMM, highlighted the roadmap’s potential to enhance financial inclusion and economic strength in the region.
Other key stakeholders, such as BSP-Cotabato Area Branch Director Zarina Aligsao and Al-Amanah Islamic Investment Bank CEO Amilbahar Amilhasan Jr., expressed their commitment to the roadmap, which envisions a fully operational Islamic finance system by 2028.
A Path Towards Economic Inclusion
According to Mohammad Yacob, Chairman of the Islamic Finance Technical Working Group and Minister of the Ministry of Agriculture, Fisheries, and Agrarian Reform, the roadmap also aims to foster international collaborations and address poverty. “This roadmap can enhance initiatives aimed at reducing poverty and improving the economic well-being of the Bangsamoro people,” he said.
The Islamic Finance Roadmap reflects the Bangsamoro Government’s commitment to creating a robust and inclusive financial system. By 2028, the region aims to have an operational system offering Shari’ah-compliant services and ethical banking products, contributing to the financial well-being of its people and advancing regional and global economic objectives.