Abstract
Microfinance-providing affordable financial services to the poor- has been identified as an important tool in increasing the productivity of the poor and in enhancing economic development. Although conventional microfinance products have been very successful in Muslim countries the traditional microfinance contract which involves the payment of interest (riba) is strictly prohibited with the principles set forth in the Sharia of Islam. Sharia-compliant microfinance is one among many interventions designed to bring poor people into the formal financial mainstream. Islamic microfinance leaders have taken the initiatives to meet the increasing needs of the poor Muslim customers with the aim of alleviating poverty among poor Muslim people. While conventional microfinance institutions (MFIs) have expanded their operations in the last two decades, Islamic microfinance products are still quite small relative to the conventional microfinance sector. Sudan emerges as the most prominent market for Islamic banking in terms of number of Islamic banking providers. This is driven by the fact that the country requires full compliance with Sharia principles for the entire financial system. In this respect, the aim of this paper is to shed light on Islamic microfinance in Sudan.
Highlights
Sudan a country with a population of approximately 36.2 million, of which two-thirds is rural, holds abundant land and livestock, rich mineral resources and, solid manufacturing base
Earlier studies of the application of Islamic finance in microfinance was carried by Rahul and Sapcanin cited by Khan [4] they demonstrate that Islamic banking, with its emphasis on risk sharing for certain products and collateral-free loans, is compatible with the needs of some micro-entrepreneurs
This study demonstrated Sudan’s experience in implementing Islamic principles in developing Islamic microfinance
Summary
Sudan a country with a population of approximately 36.2 million, of which two-thirds is rural, holds abundant land and livestock, rich mineral resources and, solid manufacturing base. Despite these large endowments of natural resources, and its agricultural potential; Sudan is ranked the fifth hungriest nation in the world by the Global Hunger Index. Growth rate of the country’s GDP show declines from 3.5% in 2010 to -3.3% and -10.1% in 2011 and 2012, respectively (WDI) [2] This is reflected on the livelihoods of many Sudanese in forms of increasing poverty statistics.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
