EFICA Awards 2014

Step Up To the Challenge and Inspire Ethics and Innovation in Financial Services

In 2013, Thomson Reuters and Abu Dhabi Islamic Bank (ADIB) partnered to launch the world’s first Ethical Finance Innovation Challenge and Awards (EFICA) to inspire and recognise fresh ways of thinking and promote the most dynamic actionable solutions that advance ethics in the world’s financial services. Following the success of EFICA 2013 which was held in the Global Islamic Economy Summit 2013 in Dubai with over 2000 delegates taking part in voting for the award winners, we continue our partnership this year to present EFICA 2014.

Applications are open for the following categories:

1) Islamic Finance Industry Development Award offers a prize of $100,000. This award aims to facilitate best practice business models that address challenges faced in the development of the Islamic financial services industry whilst inspiring integrity and an ethical way of thinking.

The three challenges to select from are:

Develop an Islamic credit card Develop Finance solutions for start ups Develop cases / pitches that explain why Islamic finance is a viable, ethical and

beneficial form of finance for customers and shareholders.

2) Ethical Finance Initiative Award offers a prize of $50,000. This award aims to recognize existing ethical financial solutions that can be implemented within the financial sector.

3) Lifetime Achievement Award offers a prize of $25,000: This award will be conferred on an individual who has made a significant contribution and impact in the ethical practice of financial services.

For more information visit http://updates.thomsonreuters.com/events/efica/#

Winners: EFICA Awards 2013

EFICA 2013 attracted hundreds of entries from around the world. The eventual winners were

announced and awards presented by Tirad Mahmoud, CEO of Abu Dhabi Islamic Bank (ADIB)

and Jim Smith, CEO of Thomson Reuters, at the Global Islamic Economy Summit 2013.

Islamic Finance Industry Development Challenge Winners 2013’s Islamic Finance Industry Development Challenge was to develop a sharia-compliant alternative to tawarruq for working capital and short-term financing. The winner was Islamic Finance Advisory & Assurance Services (IFAAS) for “Mudaraba financing: A New Approach”. “Mudaraba financing: A New Approach” provides a new way of implementing a mudaraba that allows for sharing of both profits and losses in a working capital facility for non-financial businesses. This has been a difficult area for Islamic banks to offer profit-and-loss sharing products because of the challenges in recordkeeping to determine profits in a short-term financing product. The IFAAS product provides a way to minimise the costs associated with the financing by making it a revolving line of credit but doing so in a way that does not subvert the full sharing of both profits and losses. It has been adopted for use by the Islamic window of Oman’s Bank Dhofar, Maisarah.

Winner of the Islamic Finance Industry Development Challenge: Shaher Abbas accepting for IFAAS

Ethical Finance Initiative Award The Ethical Finance Initiative Award promotes new or existing ethical financial solutions or initiatives that can be implemented within the financial sector. 2013’s winner was Shekra sharia-compliant crowdfunding: financial inclusion through investment inclusion. Based in Egypt, Shekra works with entrepreneurs and startups on various areas depending on their requirements at the pre-funding, funding and post-funding stages. The Shekra Network is a closed network which takes in investors based on recommendations from existing members. Shekra does not charge a fixed percentage of capital raised for startups on its platform but earns its revenue through in-kind equity. This ensures profit and loss sharing among all stakeholders. However, a minimum fee is charged to startups to provide services such as business plan support, due diligence and monitoring.

Winner of the Ethical Finance Initiative Award: Dr. Shehab Marzban accepting for Shekra Crowdfunding

Lifetime Achievement Award

2013’s Lifetime Achievement Award went to H.E. Haj Saeed Bin Ahmed Lootah. Haj Saeed

founded the world’s first Islamic commercial bank, Dubai Islamic Bank, in 1975, a significant

milestone in the history of the modern Islamic finance industry. He has also been responsible

for the development of the halal food industry in the UAE and the Middle East through Al Islami

Foods, which started life in the early 1980s as the Dubai Cooperative Society. Both Dubai

Islamic Bank and Al Islami continue to make a significant impact on the Islamic banking and

halal foods landscape. Haj Saeed has also been involved in other sectors. The Lootah Group of

Companies holds a diversified portfolio including construction, manufacturing, trading,

technology, real estate and hospitality. Haj Saeed’s life’s work is informed by the ethical

teachings and principles of the Qur’an that he believes are for the benefit of all humankind.

Winner of the Lifetime Achievement Award: H.E. Haj Saeed Bin Ahmed Lootah son accepting the award on his behalf

Take part in EFICA. Support bringing ethics back into finance and make a global impact.

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