Explaining issues relating to Islamic microfinance sustainability: African perspective

Islamic microfinance is an effective tool for poverty alleviation worldwide. Islamic microfinance is a beneficial mode1l that enhances individual’s wellbeing not only for Muslims but also for the non- Muslims well. Thus, the aim of this study is to highlight the main issues encountering the Islamic...

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Main Authors: Maouloud, Vatimetou Mokhtar, Kassim, Salina, Aslam, Ejaz, Gazali, Haneffa Muchlis, Othman, Anwar Hasan Abdullah
Format: Article
Language:English
Published: 2019
Subjects:
Online Access:http://irep.iium.edu.my/85958/1/85958_Explaining%20issues%20relating%20to%20Islamic%20microfinance.pdf
http://irep.iium.edu.my/85958/
https://ijo-bs.com/issues/
http://dx.doi.org/10.30566/ijo-bs/2019.124
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Institution: Universiti Islam Antarabangsa Malaysia
Language: English
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spelling my.iium.irep.859582021-01-07T00:19:21Z http://irep.iium.edu.my/85958/ Explaining issues relating to Islamic microfinance sustainability: African perspective Maouloud, Vatimetou Mokhtar Kassim, Salina Aslam, Ejaz Gazali, Haneffa Muchlis Othman, Anwar Hasan Abdullah HG3368 Islamic Banking and Finance Islamic microfinance is an effective tool for poverty alleviation worldwide. Islamic microfinance is a beneficial mode1l that enhances individual’s wellbeing not only for Muslims but also for the non- Muslims well. Thus, the aim of this study is to highlight the main issues encountering the Islamic microfinance institutions related to their effectiveness and durability. This study theoretically value the past prominent literature on Islamic microfinance and find out its existing problems in microfinancing. Islamic microfinance institutions are facing several obstacles to sustain in front of the high competition with the conventional microfinance institutions. Among these hindrances: low market penetration, high cost of transactions, shariah regulations, fund mobilization, risks, performance and profitability all of which are considered among the major barriers of Islamic microfinance development. Thus, Islamic microfinance operators must pay more attention to the factors affecting the sustainability of their institutions to be a durable mechanism to alleviate poverty. This a conceptual paper which provides recommendations and solutions to reduce the effects of these problems so that Islamic microfinance can be more efficient and effective strategy to minimize poverty and inequality. 2019-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/85958/1/85958_Explaining%20issues%20relating%20to%20Islamic%20microfinance.pdf Maouloud, Vatimetou Mokhtar and Kassim, Salina and Aslam, Ejaz and Gazali, Haneffa Muchlis and Othman, Anwar Hasan Abdullah (2019) Explaining issues relating to Islamic microfinance sustainability: African perspective. International Journal of Business Society (IJO-BS), 3 (12). pp. 34-40. E-ISSN 2600-8254 https://ijo-bs.com/issues/ http://dx.doi.org/10.30566/ijo-bs/2019.124
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG3368 Islamic Banking and Finance
spellingShingle HG3368 Islamic Banking and Finance
Maouloud, Vatimetou Mokhtar
Kassim, Salina
Aslam, Ejaz
Gazali, Haneffa Muchlis
Othman, Anwar Hasan Abdullah
Explaining issues relating to Islamic microfinance sustainability: African perspective
description Islamic microfinance is an effective tool for poverty alleviation worldwide. Islamic microfinance is a beneficial mode1l that enhances individual’s wellbeing not only for Muslims but also for the non- Muslims well. Thus, the aim of this study is to highlight the main issues encountering the Islamic microfinance institutions related to their effectiveness and durability. This study theoretically value the past prominent literature on Islamic microfinance and find out its existing problems in microfinancing. Islamic microfinance institutions are facing several obstacles to sustain in front of the high competition with the conventional microfinance institutions. Among these hindrances: low market penetration, high cost of transactions, shariah regulations, fund mobilization, risks, performance and profitability all of which are considered among the major barriers of Islamic microfinance development. Thus, Islamic microfinance operators must pay more attention to the factors affecting the sustainability of their institutions to be a durable mechanism to alleviate poverty. This a conceptual paper which provides recommendations and solutions to reduce the effects of these problems so that Islamic microfinance can be more efficient and effective strategy to minimize poverty and inequality.
format Article
author Maouloud, Vatimetou Mokhtar
Kassim, Salina
Aslam, Ejaz
Gazali, Haneffa Muchlis
Othman, Anwar Hasan Abdullah
author_facet Maouloud, Vatimetou Mokhtar
Kassim, Salina
Aslam, Ejaz
Gazali, Haneffa Muchlis
Othman, Anwar Hasan Abdullah
author_sort Maouloud, Vatimetou Mokhtar
title Explaining issues relating to Islamic microfinance sustainability: African perspective
title_short Explaining issues relating to Islamic microfinance sustainability: African perspective
title_full Explaining issues relating to Islamic microfinance sustainability: African perspective
title_fullStr Explaining issues relating to Islamic microfinance sustainability: African perspective
title_full_unstemmed Explaining issues relating to Islamic microfinance sustainability: African perspective
title_sort explaining issues relating to islamic microfinance sustainability: african perspective
publishDate 2019
url http://irep.iium.edu.my/85958/1/85958_Explaining%20issues%20relating%20to%20Islamic%20microfinance.pdf
http://irep.iium.edu.my/85958/
https://ijo-bs.com/issues/
http://dx.doi.org/10.30566/ijo-bs/2019.124
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