IDEAS home Printed from
   My bibliography  Save this paper

Islamic Microfinance: Moving Beyond Financial Inclusion


  • Elzahi, Abd Elrahman

    () (The Islamic Research and Teaching Institute (IRTI))


The current situation of high unemployment and the widening whole of the disadvantages people in Muslims countries have spot light the need of proper access to the microfinance Currently poor and low income people in Muslim countries has little access to either conventional or Islamic microfinance. This article is an attempt to investigate to what extend Islamic microfinance can best help in alleviating poverty in Muslim communities. The results showed that the conventional microfinance concentrates on the low-income group and thus financial and socially excluded the destitute people from microcredit and other related activities such as saving and skills improvement. Further more the resluts indictes that Islamic microfinance is moving beyond conventional counterpart to provide effective social and financial inclusion simultaneously through its Islamic social tools such as Sadaqah, waqf and Zakah, that to be given directly to the extremely poor in cash or in kind to satisfy their basic needs before granting them microcredit. These results might give good an implication to those who provide microfiance in these countries to improve the social and fiancial inclusions of the disadavantages people by adopting Islamic microcredit.

Suggested Citation

  • Elzahi, Abd Elrahman, 2015. "Islamic Microfinance: Moving Beyond Financial Inclusion," Working Papers 1435-11, The Islamic Research and Teaching Institute (IRTI).
  • Handle: RePEc:ris:irtiwp:1435_011

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    Islamic micro financing; Zakat; Waqf; Social inclusion; financial inclusion;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:irtiwp:1435_011. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Research Division). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.