Islamic Development Bank Institute, Universal Postal Union Partner to Expand Islamic Digital Financial Services
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 Islamic Development Bank (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 by Acting Director General of IsDBI Dr. Sami Al-Suwailem and Director General of the UPU International Bureau Masahiko Metoki.
Through Prosper MSMEs, IsDBI and the UPU aim to leverage the postal network's extensive infrastructure to help small businesses participate more effectively in the digital economy.
The project will be implemented in two phases across eight selected IsDB member countries. Phase one will examine the regulatory frameworks governing e-commerce, postal services, digital payments, and Islamic finance in participating countries. Phase two 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.
The project aims to develop innovative solutions that leverage postal infrastructure to facilitate e-commerce and provide Islamic payment and financing services, focusing on the needs of MSMEs, women, and youth. It also seeks to develop implementation proposals tailored to the specific needs of the participating countries.
IsDBI is financing the project, and the UPU is contributing its expertise, data resources, and engagement with its global postal network.
The project will culminate in a consolidated master report that 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.
