EFICA’S ROLE IN INNOVATING FOR ETHICAL AND ISLAMIC FINANCIAL SERVICES

ORGANISED BY

ISLAMIC FINANCE GATEWAYKNOWLEDGE SOLUTIONS POWERING DECISION MAKING

Dr. Sayd Farook and Dr. Shehab Merzban

Join the IFG community https://forms.thomsonreuters.com/ifg/

ABOUT EFICA

ABOUT EFICAWalk the talk – Bring ethics back into finance and make a global impact

Overview Award Process

• Thomson Reuters and Abu Dhabi Islamic Bank (ADIB) partnered to launch the world’s first Ethical Finance Innovation Challenge and Awards (EFICA) too inspire and recognize fresh way of thinking and promote the most dynamic actionable solutions that advance ethics in the world’s financial services.

• Upon submitting the relevant application form the executive committee will review all applications and assess feasibility and alignment with the award objectives.

• 6 Shortlisted candidates will be announced per award end of August 2014

• Shortlisted candidates will have to attend a workshop to present there initiative in front of the sharia & advisory board members.

• The final three per award will attend an event to present to the public audience and voting will take place to decide the winner.

* This process is not applicable for the lifetime achievement award

Award Objectives

3

• Promote new or existing ethical financial solutions or initiatives that can be implemented within the financial sectors.

• Provide best-practice business model that addresses the challenges faced in the development of the Islamic financial services industry.

• Recognize and award individuals that have shaped the world of financial services to the better.

EFICA AWARDS 2013

EFICA AWARDS 2013

5

7%

14%

9%

25%

39%

3% 3%

AfricaAsiaCanada and USAEuropeMENAOceanicOthers

500 + registered for last years EFICA awards across the world such as United States, United Kingdom, Australia, UAE, Egypt, Kazakhstan, Malaysia and much more.

EFICA AWARDS 2013 - WINNERS

6

Winner of the Islamic Finance Industry Development Challenge Shaher Abbas, IFAAS

Winner of the Ethical Finance Initiative Award Dr. Shehab Marzban, Shekra Crowdfunding

Winner of the Lifetime Achievement Award H.E Haj Saeed Bin Ahmed Lootah , on behalf of his brother Mr.Saleh Lootah received the award

EFICA 2014

EFICA 2014 AWARD CATEGORIES

Islamic Finance Industry Development Award

Lifetime Achievement Award

The Islamic Finance Industry Development Award awards a single prize of $100,000 to the best-practice business model that addresses the challenges faced in the development of the Islamic financial services industry whilst inspiring integrity and an ethical way of thinking.

This year the three challenges nominated by the advisory board are:

• Develop an Islamic Credit Card• Develop Finance Solutions for Startups • Develop cases that explain why Islamic finance is a viable, ethical and beneficial form of finance for customers and

shareholders

8

The prestigious Lifetime Achievement Award celebrated the outstanding individual or institution that has, using a positive approach and ethical principles, shaped the world of financial services. The winner received a prize of $25,000

Ethical Finance Initiative Award

The Ethical Finance Initiative Award looks to promote emerging and existing talent by offering a prize of $50,000 for new or existing ethical financial solutions or initiatives that can be implemented within the financial sector.

9

The three challenges nominated by the advisory board are:

Develop an Islamic credit card: Innovative structures (inclusive of processes involved) for sharia-compliant credit cards that are ethically responsible, profitable, cost effective and efficient for the Islamic financial institution while meeting the financial needs of consumers.

Develop financing solutions for start ups: Implemented initiatives or innovative process plans that facilitate large scale financing of start-ups with due consideration to the risks involved and sharia-compliant structuring issues.

Develop cases/pitches that explain why Islamic finance is a viable, ethical and beneficial form of finance for customers and shareholders: Any form of marketing strategies, campaigns and pitches that can have the widest large scale and inclusive impact for educating individuals about the viable, ethical nature of Islamic finance. These could be implemented initiatives or ideas for advertisements, social media, marketing campaigns or other forms of marketing creative that reach the largest audience in any part of the world in the quickest and most effective manner while relaying the comprehensive picture of the features of Islamic finance and why it is valuable to the audience.

EFICA 2014 ISLAMIC FINANCE INDUSTRY DEVELOPMENT CHALLENGE DETAILS

Shekra Crowdfunding

Dr. Shehab Marzban, Cofounder and Managing Partnersmarzban@shekra.com

ENTREPRENEURSHIP IN MENA

Vast majority of Entrepreneurs in MENA

• Is young (Median Age in Egypt 24 for instance)

• Need access to capital to develop ideas

Vast majority of potential investors / backers

• Have limited capital and are looking for similar investment opportunities as available to the big industry players

Ecosystem still in embryo phase due to limited number of VCs and incubators

ENTREPRENEURSHIP IN MENA

Arab Your Survey, 2014

An average of 15% of youth of the region want to start their own business – Gallup 2010

13

ABOUT SHEKRA

Sharek Fekra, equity-based crowd funding initiative

Focus: Too big for Microfinance and too small for PE Funds and too risky for Banks

SME Development Award and EFICA in 2013

14

Strength

• Multidisciplinary Team and Board• Strong Brand in MENA• Cost-efficient Operations• Exclusive Network• Unique Positioning offering Shariah-compliant financing for startups

Opportunities

• Underserved Ecosystem• Young Population and Increasing Number of Startups• Regional Demand and Potential

Challenges

• Regulatory Framework• Regional Scalability• Outreach to Global Investors• Political Instability

ABOUT SHEKRA

FUNDED STARTUPS

16

EFICA

• Great exposure!• Financing partially our innovation and product development• Market recognition and branding• Regional requests and interest

Shekra Next Steps

• Finalize new scalable process & platform with regional focus• Hybrid model compensation through equity and commission• Close another 3-4 companies in 2014• Raise capital to scale, expand and operate outside of Egypt

EFICA AND WHAT IS NEXT

THANK YOU

Dr. Shehab Marzban

smarzban@shekra.com

www.shekra.com