Islamic Finance and SMEs: Recent Trends and Impact Analysis

This report delves into the extensive role of Islamic finance and its contribution to the growth of Small and Medium Enterprises (SMEs) over recent years. The study encompasses various aspects, including an introduction to the subject, a discussion on financing for SMEs, an overview of Islamic banking, an examination of the obstacles faced by Islamic banks in financing SMEs within the Kuwaiti context, and a detailed exploration of research methods. Furthermore, it presents findings derived from the opinions of SMEs management, Islamic bank management, and Sharia members. The report concludes with a comprehensive discussion of the results, implications of the study, limitations, and recommendations for future research, drawing upon key sources such as Alhabashi (2015), Elasrag (2016), Shaban et al. (2016), and Ali (2014) to support its analysis.

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THE EXTENSIVE ROLE OF ISLAMIC FINANCE AND ITS CONTRIBUTION IN THE RISE
OF SMALL AND MEDIUM ENTERPRISES (SMES) OVER THE LAST FEW YEARS
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The extensive role of Islamic finance and its contribution in the rise of Small and Medium
Enterprises (SMEs) over the last few years
The study will cover the following titles and subtitles with the aim to assess the extensive
role played by Islamic Banks in the rise of SMES over the past few years.
1. Introduction
1.1 The Background
1.2 The Problem Statement
1.3 Study questions and objectives
1.4 Rationale
2. Financing for the SMES
2.1 Overview
2.2 Understanding Small and Medium Enterprises
2.3 SMEs overview in the country
2.4 Distribution of SMES by geography, ownership and activity
2.5 Source of financing for SMEs
2.6 Financing difficulties by SMEs
3. Islamic Banking
3.1 Definition of Islamic banking
3.2 Overview of Islamic banking in Kuwait
3.3 Factors assisting development of the Islamic Banking in the country
3.4 Legal and regulatory framework for the Islamic finance in Kuwait
3.5 Different Islamic financing options for SMEs
3.6 Access to Islamic banking finances for SMEs
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4. Obstacles experienced by the Islamic banks in financing SMES in Kuwait
4.1 Overview
4.2 Kuwait economy
4.3 Economic structure of the country
4.4 Penetration of the Islamic financial institutions in SMES
4.5 Potential for the Islamic financing in SMES
5. Research Methods
5.1 Introduction
5.2 The Study design
5.3 Strategy
5.4 Data collection and sampling technique
5.5 Data analysis
5.6 Ethical considerations
6. Results for the SMEs Management Opinion
6.1 Overview
6.2 Aspects affecting SMEs operations in the country
6.3 Islamic finance firms in Kuwait
6.4 Islamic financing for the SMEs
7. Results for Islamic Bank’s Management Opinion
7.1 Aspects affecting SMEs
7.2 Islamic financial firms in Kuwait
7.3 Islamic financing for the SMEs
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8. Results from Sharia Members’ Opinion
8.1 Aspects affecting SMEs
8.2 Islamic financial firms in Kuwait
8.3 Islamic financing for the SMEs
9. Discussion of Results
10. Conclusion
10.1 Introduction
10.2 Conclusion
10.3 Implication of the study
10.4 Study limitations
10.5 Recommendations for future study
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Bibliography
1. Alhabashi, Khaled. "Financing for Small and Medium Enterprises: The Role of Islamic
Financial Institutions in Kuwait." (PhD diss., University of Gloucestershire, 2015).
2. Elasrag, Hussein. Islamic finance for SMES (Hussein Elasrag, 2016).
3. Shaban, Mohamed, Meryem Duygun, and John Fry. "SME's lending and Islamic finance.
Is it a “win–win” situation?." (2016), 55 Economic Modelling 1-5.
4. Ali, Abd Elrahman Elzahi Saaid. The challenges of Islamic trade finance in promoting
SMEs in IDB member countries. No. 1435-6. 2014.
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