UAE-Based Islamic Finance Hub Partners with Ethiopian Professionals to Boost Interest-Free Banking Sector

EBR_News Mar 16, 2026

The AlHuda Centre of Islamic Banking and Economics (CIBE), a globally recognized advisory and research institution based in the UAE, has signed a Memorandum of Understanding with the Ethiopian Interest Free Finance Professionals Association (EIFFPA) to strengthen capacity building, advocacy, and knowledge sharing for the development of Sharia-compliant finance in Ethiopia, according to a joint press release issued today.

The agreement establishes a framework for collaboration in key areas including professional education and training, conferences and seminars, public awareness initiatives, policy advocacy, and professional exposure visits. The partnership aims to support the growth of interest-free finance by engaging stakeholders, developing policy materials, and strengthening the technical capacity of industry practitioners.

Muhammad Zubair Mughal, Chief Executive Officer of AlHuda CIBE, stated that the collaboration reflects the institution’s continued commitment to strengthening emerging markets through professional education and institutional partnerships. “Ethiopia presents strong potential for the development of interest-free finance, and we believe this alliance will contribute meaningfully to building sector knowledge, industry linkages, and long-term growth,” he said.

Abdulkadir Wolela, Chief Executive Officer of EIFFPA, emphasized the value of bringing international expertise to Ethiopia’s growing interest-free finance industry. “By working together on training, advocacy, policy engagement, and exposure opportunities, we aim to enhance professional standards, expand awareness, and contribute to the development of a more inclusive and sustainable financial ecosystem in Ethiopia,” he stated.

The partnership comes as Ethiopia’s interest-free banking sector experiences rapid expansion, with total interest-free deposits across various banks estimated at over 450 billion birr of which Hijra Bank currently holds only four percent, according to recent industry statements. EIFFPA has been actively working to support the sector’s development, having held its fourth annual general meeting at Dashen Bank’s headquarters, where it reviewed performance and outlined future strategies.

Dashen Bank, an institutional member of EIFFPA, is also a permanent member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), reflecting the growing institutionalization of the sector.

The agreement is initially valid for two years and may be renewed upon mutual written consent. Under the terms, AlHuda CIBE will develop and deliver training content and learning materials, while EIFFPA will identify and nominate qualified participants and provide local market insights.