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== Top 20 FREQUENT WORDS ==
islamic 103
financial 62
microfinance 49
finance 32
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banking 24
muslim 23
countries 22
services 19
profit 18
financing 14
islam 14
based 13
development 13
institutions 13
principles 13
banks 12
credit 12
loan 12
project 12



== DOCUMENT KEY POINTS ==
*charity is for the poor who are restrained in the way of allah and are unable to move about in the land

*this paper aims to focus on different issues whether the economic behavior can be influenced by the predominant religious belief the role of islamic finance in muslim societies nowadays but most of all its potential to fight poverty in those countries belonging to the so called developing world when related with important economic development tools such as microfinance
*alam islamic microfinance consultant canada mister kais aliriani head of unit small and micro enterprise development unit social fund for development yemen mister magdy moussa senior manager and finance advisor environmental quality international eqi egypt miss eva stenius associate jak members bank sweden

*at a very basic level the disbursement of collateral free loans in some cases constitutes an example of how islamic banking and microfinance share common ai miss thus islamic banking and microcredit programs may complement one another in both ideological and practical terms dhumale sapcanin

*for muslims the holy quran and the sunnah constitute the primary sources of knowledge the holy quran confirms what was revealed to earlier messengers of god and serves as the criterion of what is right and what is wrong while the sunnah is collected in books which are separated from the holy quran and are known as hadith books
*the foundation of muslim life are the so called five pillars of islam faith or belief in god and the finality of the prophet hood of muhammad worship respecting the five daily prayers almsgiving and concern for those who are in need self purification through fasting and the pilgrimage to mecca for those who are able to do it

*a number of researchers suggest that the underlying causes of the genesis of modern islamic economics was based more on the desire to reflect beliefs about islamic identity than to establish a more ethical or religiously sound banking system term referring to the custom or knowledge of a given society leading to change in the fiqh islamic jurisprudence

*first of all in an islamic profit sharing contract the return on capital will depend on productivity and the allocation of funds will be primarily based on the soundness of the project improving the capital allocation efficiency
*also islam protects the ownership of businesses and companies by restricting ownership of companies only to those who contribute both capital and effort to the company or business thus effectively putting the seal on such concepts as corporate takeover from ever becoming a reality

*kabir hassan define five basic islamic financing contracts murabaha financing resale of goods ijara and ijara wa iqtina lease financing istinsa mudaraba or modaraba a participation financing musharaka a murabaha this constitutes one of the most well known islamic products consisting in a cost plus profit financing transaction in which a tangible asset is purchased by an islamic institution at the request of its customer from a supplier
*the conditions governing both types of leasing are that assets must have a long secure productive life and must not be handled in an un islamic way meaning that the lease payments must be agreed on in advance to avoid any speculation iqtisad al isalmy contracts in islamic commercial and their application in modern islamic financial system ramadhan h islamic world

*in case of a loss the bank earns no return or negative return on its investment and the agent receives no compensation for his her effort in this kind of contract all the financial responsibilities rely on the business itself the financial institution invests on an idea a project and shares its fate
*mutual investment deposits an islamic bank will combine these deposits with the bank s money in order to participate in mutual investment transactions conducted by the bank

*the true revolution of microfinance is that this tool gives a chance to people who were denied the access to the financial market opens new perspectives and empowers people who can finally carry out their own projects and ideas with their own resources and escape assistance subsidies and dependence

*rural development banks suffered massive erosion of their capital base due to subsidized lending rates and poor repayment discipline and the funds did not always reach the poor often ending up concentrated in the hands of better off farmers
*one more example mfis microfinance institutions and ngos non governmental organizations in india mostly rely on savings collection to support their institution and become sustainable while in egypt they are forbidden by law to collect savings

*a few studies have been carried out on the subject and experience on the field is still relatively small but it proves to have huge potentialities both to fight against poverty financial and social exclusion and to enlarge and enrich the basin of clients of financial institutions in developing countries with an islamic cultural substratum
*as its ultimate goal is the maximization of social benefits as opposed to profit maximization through the creation of healthier financial institutions that can provide effective financial services also as grass roots levels some authors al harran argue that islamic finance if inserted in a new paradigm could be a viable alternative to the socio a economic crisis lived by the western paradigm

*the borrower often pays for the goods in equal installments and the microfinance program owns the goods until the last installment is paid
*a murabaha model example hodeidah microfinance programme yemen although traditional banking products have been available in yemen for many years and are still the predominant type of finance many people especially the poor have been reluctant to take credit in part due to religious beliefs

*the aim of the project was quite ambitious the financial services were supposed to reach all the tribes of the area the moors the tuareg and various black african groups
*an interesting case the mali north program of the german cooperation gtz german technical cooperation and kfw german financial cooperation worked on a development project in the former civil war areas of timbuctu mali constituted by three main components rural development promotion of municipal structures and microfinance

*the financially excluded group is heterogeneous and includes not only poor people in developing countries but also migrants who need money transfer to manage their remittances in their home countries young people with the enthusiasm of staring some new income generation activity but lack capital exclusion can come about as a result of problems with access prices marketing financial literacy or self exclusion in response to negative experiences or perceptions

*mfis that are close to or deriving from ngos could specialize in financial services at the grass root level commercial banks could specialize in micro and small entrepreneurs islamic banks to those clients with specific religious beliefs which do not fit with the western financial model

*institute for research and islamic studies khan mansoor h designing an islamic model for project finance international finance and law review usmani m


 ''Please note, This is an auto generated summary based on sentances position in the document and other factors''
== DOCUMENT WORD ANALYSIS ==
=== Main Category ===
: AlHuda Material\islamic micro


=== KeyWords ===
islam finance bankable contract client profit purchase financial asset microfin risk sale transact price murabahah busi sharia goodasset payment invest



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== DOCUMENT REFERENCES ==


=== Number of Pages ===
20


=== Published Date ===
2005-09-06 15:46:12


== Full Document ==


[http://45.40.136.134/~hodhood/HodHoodDocuments/IslamicFinance/IslamicMicro/Islamic%20microfinance%20and%20socially%20responsible%20investments.pdf Read the Full Document]


[[Category:Islamic Finance]]

[[Category: Islamic Micro]]