World Bank Group

The author gives a brief summary on Islamic Banking’s objections to conventional banking and provides a detailed analysis of various contracts within the scope of Islamic Banking, as well as the different kinds of transactions. Microfinance is a powerful tool for reaching the poor by raising their living standards, creating jobs, and contributing to economic growth. More needs to be done to reach the 4.5 million entrepreneurial poor in the Middle East and North Africa. As of today, only Egypt’s National Bank is an active participant in the microfinance industry.