Islamic Microfinance (Commercial)

Dr. Mohammed Obaidullah · 3 October 2023

Islamic societies face rising poverty and financial exclusion, often exacerbated by conventional microfinance programs overlooking religious sensitivities. Successful poverty alleviation necessitates a model respecting Islamic beliefs and culture.

This is the first in the two-part (6-credits) course on Islamic microfinance and focuses on the for-profit modes and models offering a deep dive into microfinance tailored for Islamic societies. The second course logically follows the outline of the present course focusing on the social microfinance that primarily uses philanthropy-driven or not-for-profit modes and models.

Each of the courses is equivalent to a 3-credit course taught at universities, spans fourteen (14) topics, delveing into the tools and methods sanctioned by Shariah.

Highlights of this Course:

  1. Microfinance and Objectives (Maqasid) of Shariah: Contrasts global human development and poverty alleviation goals with the objectives of the Shariah and UN’s sustainable development goals (SDGs). Highlights the Islamic poverty alleviation stance versus various global microfinance models, paving the way for Islamic economic solutions.
  2. Islamic and Ethical Evaluation of Mainstream or Conventional Microfinance: Attempts an unbiased assessment of the pitfalls of conventional microfinance and its various models as tried across the globe.
  3. Islamic Microfinance Principles: Reviews Islamic microfinance principles at a foundational level with an honest attempt to examine if these can address the issues and challenges facing microfinance as a solution to high and rising levels of poverty.
  4. Modes and Models of Islamic Microfinance (For-Profit): Presents and evaluates the entire range of for-profit or commercial modes and models of Islamic microfinance, discusses sale-based modes like murabaha, bai-bithaman-ajil, and lease-based modes, plus participatory approaches like mudarabah and musharakah.
  5. Case Studies in Islamic Microfinance: Showcases diverse Islamic microfinance practices using case examples across various regions, sectors, and regulatory frameworks.

Course Content

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Course Includes

  • 14 Lessons
  • 34 Topics
  • 13 Quizzes

Dr. Irfan Syauqi Beik

Member of Board of Commissioner Badan Wakaf Indonesia

Nana Mintarti

Commissioner, National Zakat Foundation (BAZNAS) Indonesia

Dr. Ahmad Juwaini

Director, National Sharia Economy & Finance Committee (KNEKS), Indonesia

Agus Wicaksono

CEO & Co-Founder of Alumnia

Dr. Moutaz Abojeib

Islamic Fintech Expert, ISRA, INCEIF

Dr. Nasim Shah Shirazi

HBK University, Qatar

Dr. Mohammed Obaidullah

Founder, IBF Net

Dr. Hisham Dafterdar

Awakaf Australia

Mufti Faraz Adam

Shariah Consultant & Head of Research, National Zakat Foundation, UK

Azim Kidwai

CEO, Mercy Mission & Chair, BoT, National Zakat Foundation, UK

Vladimir Malenko

General Director
PayZakat, Russian Federation

Zeinoul Abedien

CEO, Awqaf SA, South Africa

Dr. Abd Halim M Noor

Rector, UiTM Melaka Campus, Malaysia

Dr. Aliyu Dahiru Mohammed

Bayero University, Kano, Nigeria

Khalifa Muhamad Ali

Faculty of Islamic Economics
IPB University, Indonesia