IsDBI and UPU launch ‘Prosper MSMEs’ to expand Islamic digital financial services through postal networks

Photo: Islamic Development Bank Institute (IsDBI)

BAKU, Azerbaijan, October 12. The Islamic Development Bank Institute (IsDBI) and the Universal Postal Union (UPU) have signed an agreement to launch a new project titled ‘Prosper MSMEs’. The project will explore how national postal networks in IsDB member countries can widen access to e-commerce and deliver Islamic finance-aligned digital financial services to micro, small and medium-sized enterprises (MSMEs) and underserved communities.

The agreement was signed on 21 September 2026 by Dr. Sami Al-Suwailem, Acting Director General of IsDBI, and Masahiko Metoki, Director General of the UPU International Bureau.

Postal networks often serve communities that commercial banks and private logistics providers do not reach. Through Prosper MSMEs, IsDBI and the UPU aim to leverage this extensive infrastructure to help small businesses participate more effectively in the digital economy.

The project will identify opportunities for postal operators to support MSMEs in selling online, enabling cross-border trade, and accessing Sharia-compliant payment and financing solutions.

The project will be implemented in two phases across eight selected IsDB member countries:

• Phase 1: Regulatory assessment. This phase will examine the regulatory frameworks governing e-commerce, postal services, digital payments, and Islamic finance in participating countries.
• Phase 2: Market analysis. This phase will assess the barriers to e-commerce adoption among MSMEs, identify gaps in financial services, evaluate demand for Islamic financial products, and analyze the capabilities of the existing postal networks in the eight selected countries.

IsDBI is financing the project, and the UPU is contributing its expertise, data resources, and engagement with its global postal network.

Prosper MSMEs seeks to achieve three main objectives:

1. Conduct regulatory and market assessments that can guide practical, country-specific technical assistance for postal-led e-commerce and digital financial services.
2. In the eight selected countries, develop proposals for innovative postal-based e-commerce and financing solutions tailored to the needs of MSMEs, women and youth.
3. Present the findings and proposals to cooperation partners, including IsDBI, in order to mobilize resources for implementation.

The project will culminate in a consolidated master report which brings together findings from the participating countries and outlines a roadmap for implementation. The resulting evidence-based project pipeline will support governments, postal operators, and development partners in expanding digital market access and promoting ethical, inclusive finance for small businesses and underserved communities.