The Relationship between Knowledge Awareness and Intention to Adopt Islamic Finance in Syria

Abstract

The progress of Islamic Banking and Finance in Syria has been limited due to various factors, such as insufficient support from regulatory bodies and customers. Small and medium enterprises (SMEs) play a crucial role in Syria’s national economy and employment, but they may not receive adequate backing from Islamic Banking and Finance. There is limited literature to link SMEs with the Islamic financial system, especially in Syria. Determining the importance of the Islamic finance system in SMEs in Syria specifically and other Muslim states requires tackling this research subject and providing an empirical analysis, this represents the problem of the study. This study investigates the relationship between knowledge awareness and intention to adopt Islamic finance among SMEs in Syria. Study helps individual practitioners as well as the academic and theoretical communities. The conclusions will impact policy, and the advisory council and the management of the SMEs will work together to build the strategy. Quantitative analysis was applied to measure the impact of the independent variable on the dependent one, and quantitative measures can identify subtle differences and variations between individuals. The tool used for this study is a questionnaire. the research population consists of 600 small and medium-sized companies in Syria, while the study sample consisted of 400 small and medium-sized companies to which the questionnaire was distributed. The findings revealed that the direct relationship independent variable (Knowledge Awareness) is significant factor in the adoption of Islamic Finance among SMEs in Syria. This study proves that the FinTech greatest challenge is not only to create opportunities to use modern technology in Islamic banking sector, but it can also design a framework for a digital economy based on Islamic principles according to the objectives of Shari’a principles. As a contribution, this study will serve as a guide for investors and managers to verify the compliance and adoption of Islamic finance among small and medium-sized enterprises in Syria by utilizing FinTech.