THE ECONOMIC NECESSITY OF ISLAMIC MICROFINANCE ORGANIZATIONS IN POVERTY REDUCTION
Keywords:
isogeometric analysis, Galerkin boundary element method, quadrature formulae, quasi–interpolation. Islamic Microfinance Organization, ribo, Islamic financial services, zakat, waqf, murabaha, musharaka, mudarabaAbstract
Poverty is one of the problems of the global world. One of the main reasons for this is the limited access to financial services. Indeed, it is natural that the poor need not only loans, but also various banking services such as credit, savings, remittances and insurance. Since commercial banks mainly specialize in big cities, microfinance organizations come to the rescue. Microcredit organizations are also divided into two groups according to their formation and operation. These are traditional and Islamic microcredit organizations.
Microloans offered by traditional microfinance organizations contain an element of riba, which is prohibited by Islamic Shari'a, due to the fact that the Muslim population and entrepreneurs in the country are prevented from using them. Therefore, the establishment of Islamic microfinance organizations plays an important role in eradicating poverty, especially in many countries with Muslim populations.
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