Hanoi:The Islamic Development Bank Institute (IsDBI) and the Universal Postal Union (UPU) have signed an agreement to initiate "Prosper MSMEs," a project aimed at expanding access to Islamic finance-aligned digital financial services and e-commerce for micro, small, and medium-sized enterprises (MSMEs) and underserved communities in Islamic Development Bank member countries.

According to Saudi Press Agency, the agreement was signed by Dr. Sami Al-Suwailem, Acting Director General of IsDBI, and Masahiko Metoki, Director General of the UPU International Bureau. The initiative plans to utilize national postal networks to enhance the participation of small businesses in the digital economy.

The implementation of the Prosper MSMEs project will occur in two phases across eight selected IsDB member countries. The first phase will focus on analyzing the regulatory frameworks related to e-commerce, postal services, digital payments, and Islamic finance in these countries. The second phase will address e-commerce adoption barriers for MSMEs, identify financial service gaps, assess the demand for Islamic financial products, and evaluate the current capabilities of postal networks.

The project is designed to create innovative solutions using postal infrastructure to facilitate e-commerce and provide Islamic payment and financing services, targeting MSMEs, women, and youth. Tailored implementation proposals will be developed to meet the specific needs of the participating countries.

IsDBI will finance the project, while the UPU will offer its expertise, data resources, and global postal network engagement. The project aims to produce a consolidated master report, which will present findings from the participating countries and outline an implementation roadmap. This will support governments, postal operators, and development partners in expanding digital market access and promoting ethical, inclusive finance for small businesses and underserved communities.