Islamic micro and medium sized enterprises finance: The case study of Australia

The article initially gives an overview of Islamic finance and the laws that govern it. It then gives a background on general microfinance and Islamic microfinance. Based on the local needs and financial and economic situation, microfinance tools can be adapted to every environment. The Islamic microfinance enterprises in Australia that rely on the savings of the shareholders have been very successful in delivering microfinance to their clients. The emergence and development of Islamic MMEs (Micro and Medium sized Enterprises) finance in Australia is explored in the article. These MMEs serve to meet the need of financing a large and growing Muslim community while following Islamic tenets. The current realities of the Islamic financial system in Australia in the light of the theories of modern financial intermediation as well as Islamic microfinance contracting are also studied in the paper. The Islamic microfinance techniques used by the Islamic Financial Services Providers of Austra