The Islamic Research and Training Institute (IRTI) and the Arab Monetary Fund (AMF) have jointly organized a workshop on Financing Small and Medium Enterprises from Islamic perspective, in Abu Dhabi, United Arab of Emirates.
Experts in Islamic banking, economic empowerment, poverty alleviation, and financial economics led the workshop, which was held from 6 to 10 May 2018.
During the program, participants learned the key elements in the role of small and medium enterprises in economic development and bank financing for these enterprises. They also trained on the key techniques and success factors (based on IDB best practices) needed to make profit in SME banking. In addition, participants understood the different Islamic modes of finance as alternative tools of financing and their relevance to financing SMEs.
The workshop focused on the current challenges in financing and regulatory requirements facing small- and medium-sized institutions, especially the lack of creditworthiness and lack of development of capital markets, which limit their access to finance.
The workshop offered Islamic banking modes and financial products as opportunities and alternative tools for financing SMEs, with a focus on the experiences of particular Arab countries in terms of regulation, supervision, and experience in the field.
Topics covered in the program were:
- Overview of SMEs: Definition, scope and needs
- Financing of small and medium enterprises
- Islamic financing methods for small and medium enterprises
- Major challenges in financing small and medium enterprises
- Implementing SME financing mechanisms
- A case study in SME development