Muslim farmers who wish to obtain funds from the Agricultural Development Bank (ADB) can now do so as $100 million has been made available.

The funding has been set up through the creation of an Islamic financing window which is in keeping with Islamic law.

The Memorandum of Understanding (MOU) to give effect to this was signed yesterday during an Eid-ul-Fitr luncheon for members of the Muslim community hosted by Prime Minister Kamla Persad-Bissessar at the Diplomatic Centre, St Ann's.

Persad-Bissessar said this was a "progressive step" and underlines her Government's commitment to not only pursue development but to do so in a manner which truly embraces the rich diversity of Trinidad and Tobago.

The MOU was signed by Muslim leaders including ASJA president Haji Yacoob, president of the Trinidad Muslim League (TML), Dr Nasser Mustapha, and Imran Hoosaney, president of the Tackveeyatal Islamic Association (TIA).

President of the ADB, Rudy Maharaj, said a committee was established to see to the creation of the Islamic financing window.

He noted that Islamic banking was a system that is based on the principles of Islamic law, also known as shariah, and guided by Islamic economics.

Maharaj said two basic principles behind Islamic banking are the sharing of profit and loss and the prohibition of the collection and payment of interest.

He also stated that the ADB for the first time recorded a profit of $3.5 million in the last fiscal year and was on target for a repeat again this year.

Food Production Minister Devant Maharaj described the contribution of the Muslim community to the agricultural sector in the country as legendary.

"What is even more impressive is the fact that much of the funds that went into financing the work of Muslim farmers came from within their own community because of their own spiritual mandate to follow shariah law," he said.

He noted that there was an increase in the number of Muslim investors in the country and an increased demand for the consideration for the presence of an Islamic banking sector within the local financial sector.