التمويل الأصغر الإسلامي كآلية لتمويل المشروعات الصغيرة والمتوسطة في الأردن:  دراسة تقييمية تحليلية للشركة النموذجية الإسلامية للتمويل الأصغر

Maysa’a Munir  Milhem

doi:10.35516/law.v51i1.3393

Authors

Maysa’a Munir Milhem Department of Economics and Islamic Banks, College of Sharia and Islamic Studies, Yarmouk University, Irbid, Jordan https://orcid.org/0000-0002-3236-3880

DOI:

https://doi.org/10.35516/law.v51i1.3393

Keywords:

Microfinance, small and medium enterprises, Islamic microfinance institutions, Jordan

Abstract

Objectives: This study aimed to assess the contribution of Islamic microfinance institutions in Jordan to financing small and medium enterprises and identify key challenges faced by these institutions. Additionally, it sought to evaluate the experience of Al-Namothajiah for Islamic Microfinance in financing small and medium enterprises from 2017 to 2022.

Methods: The study employed a descriptive analytical approach to examine Islamic microfinance institutions and small and medium enterprises in Jordan. It utilized a case study method to investigate Al-Namothajiah for Islamic Microfinance.

Results: The study revealed that small, medium, and micro enterprises comprised around 99.5% of all operating enterprises in the Kingdom. Microfinance played a significant role in financing these projects, offering various products such as my business, my home, my startup, my farm, and my workshop. Al-Namothajiah for Islamic Microfinance provided substantial financing, reaching 1,783,373 dinars for business projects and 846,388 dinars for home projects in 2018. Challenges faced by Islamic microfinance institutions included limited financing options, high costs, inadequate education and training for staff, credit risks, limited market access, competition, and digital transformation.

Conclusions: To enhance the capacity of Islamic microfinance in Jordan for financing small and medium enterprises, it is crucial to train and develop human resources within these institutions, activate diverse Islamic financing methods, strengthen financial resources, and support the establishment of Islamic institutions that mitigate project financing risks using Islamic formulas. The study recommends expanding the presence of Islamic microfinance institutions in Jordan and diversifying and enhancing Sharia-compliant products to meet customer demands.

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