Policy Research Working Paper 5920 - AbstractThe core principles of Islam lay great emphasis on socialjustice, inclusion, and sharing of resources between thehaves and the have nots. Islamic finance addresses theissue of “financial inclusion” or “access to finance” fromtwo directions—one through promoting risk-sharing contracts that provide a viable alternative to conventionaldebt-based financing, and the other through specific instruments of redistribution of the wealth among thesociety. Use of risk-sharing financing instruments can offer Shariah-compliant microfinance, financing for smalland medium enterprises, and micro-insurance to enhance access to finance. (more info hereunder or download the paper)
