BAKU, Azerbaijan, October 12. 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 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 on 21 September 2026 by Dr. Sami
Al-Suwailem, Acting Director General of IsDBI, and Masahiko Metoki,
Director General of the UPU International Bureau.


Postal networks often serve communities that commercial banks
and private logistics providers do not reach. Through Prosper
MSMEs, IsDBI and the UPU aim to leverage this extensive
infrastructure to help small businesses participate more
effectively in the digital economy.


The project will identify opportunities for postal operators to
support MSMEs in selling online, enabling cross-border trade, and
accessing Sharia-compliant payment and financing solutions.


The project will be implemented in two phases across eight
selected IsDB member countries:








  • Phase 1: Regulatory assessment. This phase
    will examine the regulatory frameworks governing e-commerce, postal
    services, digital payments, and Islamic finance in participating
    countries.

  • Phase 2: Market analysis. This phase 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.


IsDBI is financing the project, and the UPU is contributing its
expertise, data resources, and engagement with its global postal
network.


Prosper MSMEs seeks to achieve three main objectives:



  1. Conduct regulatory and market assessments that can guide
    practical, country-specific technical assistance for postal-led
    e-commerce and digital financial services.

  2. In the eight selected countries, develop proposals for
    innovative postal-based e-commerce and financing solutions tailored
    to the needs of MSMEs, women and youth.

  3. Present the findings and proposals to cooperation partners,
    including IsDBI, in order to mobilize resources for
    implementation.


The project will culminate in a consolidated master report which
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.