Making development assistance sustainable through Islamic microfinance
Microfinance involves the provision of financial services for those too poor to have access to banks. Although microfinance schemes have been operational since the 1960s, they mostly involve conventional finance whereas many low-income Muslims would prefer to have shari'a-compliant finance. The aim of this chapter is to explore how microfinace could be provided on a shari'a-compliant basis and what instruments and structures could be used. The literature in this area has been very limited, but there have been a number of recent notable contributiions indicating the increasing interest in the topic.
Islamic microfinance , Poverty , Microfinance model , Mudaraba , Wakala (agency)
Wilson, R. (2012). Making development assistance sustainable through Islamic microfinance. In S. Nazim Ali (Ed.), Shari'a-compliant microfinance (pp. 63-75). Abingdon, Oxon: Routledge.