Village funds: The experience of rural community development at Jabal Al Hoss, Syria

The Jabal al Hoss project in Syria is discussed in this paper. The project uses an innovative model of Islamic microfinance based on Sanadiq or village funds. Community partnership, participation and risk sharing form the basis of the model. Given the preferences of the community, the model has been found to be sound and culturally appropriate. The project pays dividends to its shareholders using a profit sharing scheme and is the only membership-based model in the region that does so. The objectives of the project are institutional and financial sustainability by using a strategy that ensures implementation. The project is located in one of the most economically disadvantaged area of the country and is thus benefiting the poorest Syrians.