Islamic microfinance refers to the system of finance that is based on Islamic law, also known as "Sharia." It combines the elements of "Islamic finance" and "microfinance." The main feature of Islamic finance that differentiates it from conventional finance is the non-existence of a fixed, pre-determined interest in any financial transaction. Islamic microfinance has a major role in poverty alleviation in under-developed nations across the world. A huge part of the Islamic population is reluctant to use conventional financial products due to their incompatibility with Islamic principles. Islamic microfinance is a way to promote financial inclusion among such population.
TechNavio's analysts forecast the Global Islamic Microfinance market to grow at a CAGR of 19.7 percent over the period 2013-2018.
Covered in this Report
In terms of product, the Global Islamic Microfinance market can be segmented into five: Murabaha, Mudaraba and Musharaka, Ijarah, Takaful, and Qard Al Hasan. These are the main Islamic microfinance products offered by financial institutions worldwide.
TechNavio's report, the Global Islamic Microfinance Market 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers East Asia and Pacific, the Middle East and North Africa, and South Asia; it also covers the Global Islamic Microfinance market landscape and its growth prospects in the coming years. The report includes a discussion of the key vendors operating in this market.