Hanoi:The Islamic Development Bank Institute (IsDBI) and the Universal Postal Union (UPU) have entered into an agreement to initiate a project named "Prosper MSMEs." This initiative aims to utilize national postal networks within Islamic Development Bank member countries to expand access to e-commerce and deliver digital financial services aligned with Islamic finance principles to micro, small, and medium-sized enterprises (MSMEs) and underserved communities.

According to Saudi Press Agency, The project, signed by Acting Director General of IsDBI Dr. Sami Al-Suwailem and Director General of the UPU International Bureau Masahiko Metoki, is structured in two phases across eight selected member countries. The first phase will scrutinize the regulatory frameworks related to e-commerce, postal services, digital payments, and Islamic finance in the involved countries. The second phase aims to identify barriers to e-commerce adoption among MSMEs, assess gaps in financial services, evaluate the demand for Islamic financial products, and analyze the capabilities of existing postal networks.

The objective is to create innovative solutions leveraging postal infrastructure to facilitate e-commerce and provide Islamic payment and financing services, with a particular focus on MSMEs, women, and youth. Implementation proposals will be developed to meet the specific needs of each participating country.

IsDBI is providing the financial resources for the project, while the UPU offers expertise, data resources, and engagement through its global postal network. The project will culminate in a comprehensive master report compiling findings from the participating countries and providing a roadmap for implementation. 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.