The possibilities of applying Bay'Salam contracts in the agriculture sector of Pakistan are investigated in this article. Information regarding crop inputs, output and credit requirements was gathered from farmers in four districts of Punjab province by using a specifically designed survey.
The productive efficiency of pawnshops concerning their ability to provide and distribute funds to the society (marketability efficiency) is investigated in the study. Data Envelopment Analysis (DEA) using CCR model and BCC model is used to perform efficiency analysis of conventional and Islamic pawnshops. The most productive scale size for pawnshops is also investigated as well as a comparison of the mean efficiency of conventional and Islamic pawnshops is made using independent tests.
There is a difference of opinion in academic and practitioner circles regarding the social role of Islamic Finance Institutions (IFIs). A structured definition of this social role based on Islamic principles of social equity and on justice due to redistribution of wealth is presented in this study. The role of IFIs as financial institutions that fulfill a collective religious obligation and their position as financial intermediaries are two reasons why IFIs should have a social responsibility. This study gives a practical framework to IFIs to address their social responsibilities.
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 Rural Development Scheme (RDS), a shari’a based model of poverty alleviation program, is used by the Islami Bank Bangladesh Limited (IBBL) to provide micro finance services to mainly poor women of the rural areas of Bangladesh. By using a survey, the basic characteristics of women entrepreneurs in an Islamic perspective are identified in this paper and the paper verifies those characteristics of the women entrepreneurs associated with RDS.
The performance of the Islamic entrepreneurship projects financed thought the banking system in Sudan and the obstacles and factors that influence the decision making of Small and Medium Enterprises (SMEs) are evaluated in this paper. Sudanese Islamic banks face the major dilemma of long-term financing of SMEs. For socio-economic development, especially in rural areas, it is important that banking facilities are fairly distributed. The use of group lending concept in financing musharakah to SMEs is recommended.
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.