Shari'a Compliant Microfinance Routledge Islamic Studies Series

In the recent past, Islamic finance has made an impressive case on the banking scene by becoming an alternative to the popular conventional financial systems, spurring a lively academic debate on how the Islamic finance industry can expand its services to cover the poor. Several propositions have been aired which suggest that the Islamic finance industry should consider developing an efficient Shari?a compliant microfinance model.

This book brings together original contributions from leading authorities on the subject of Shari?a Compliant Microfinance (Islamic Microfinance) to propose innovative solutions and models by carefully studying experiments conducted in various countries. Where critiques of the current microfinance concepts, methods, regulatory measures and practices have often revolved around its practice of charging very high interest, this book discusses the several models that draw on both theory and case studies to provide a sustainable Shari?a compliant alternative. Arguing that while Islamic finance might have made a remarkable contribution in the financial markets, there remains a big question with regards to its social relevance, the book provides new perspectives and innovative solutions to issues facing the Islamic microfinance industry.

A comprehensive reference book for anyone wanting to learn more about Shari?a Compliant Microfinance, this book will also be of use to students and scholars of microfinance, Islamic finance, and to anyone interested in learning about ethical and socially responsible businesses.

Introduction Part 1: Islamic Microfinance and Shari‘a-Compatibility 1. Meeting the Demand for Sustainable, Shari‘a-Compliant Microfinance 2. Organizational Models of Islamic Microfinance 3. Islamic Finance and Microfinance: An Insurmountable Gap? 4. Islamic Microfinance: Between Commercial Viability and the Higher Objectives of Shari'a Part 2: Developments in Islamic Microfinance 5. Making Development Assistance Sustainable Through Islamic Microfinance 6. Leveraging Philanthropy Monetary Waqf for Microfinance 7. Incentivizing Microfinance for Islamic Financial Institutions: Financially Mainstreaming the Microenterprise 8. Re-Thinking Leasing From an Interest-Free Perspective: Exploring the Prospects of Islamic Micro-Leasing for Poverty Alleviation Part 3: Islamic Microfinance Case Studies 9. Islamic Microfinance in Indonesia: The Challenge of Institutional Diversity, Regulation and Supervision 10. Islamic Microfinance in Crisis Countries: The Unofficial Developmental Discourse 11. Muslim Funds in India: Institutional Mobilizing of Micro Savings 12. Innovations in Islamic Microfinance: Lessons from Muslim Aid's Sri Lankan Experiment Part 4: Resources on Islamic Microfinance 13. Information Sources on Islamic Microfinance: A Critical Literature Review

S. Nazim Ali is the founding Director of the Islamic Finance Project and Acting Executive Director of the Islamic Legal Studies Program at Harvard Law School, Harvard University. For the last twenty-five years, his research and professional activities have concentrated on Islamic banking and finance.