Degree

Master of Science in Islamic Banking & Finance

Department

Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Spring 2024

Supervisor

Dr. Saqib Sharif, Associate Professor, Dept. of Finance, IBA - Karachi.

Committee Member 1

Examiner I: Dr. Hassan Shakeel Shah, Associate Professor, University of Management and Technology, Lahore

Committee Member 2

Examiner II: Dr. Salman Ahmed Shaikh, Associate Professor, SZABIST, Karachi

Committee Member 3

Dr. Abdullah Zafar Sheikh, Dean- School of Business Studies (SBS), IBA - Karachi

Keywords

Islamic Economic and Financial System, Maqasid al Sharia, Shared Prosperity, UN Sustainable Development Goals, Poverty, Inequality, Ethical finance, interest-free microfinance

Abstract

Introduction: Islamic microfinance has gained prominence as a tool for promoting financial inclusion and socio-economic development, particularly in Muslim-majority regions. By adhering to Shariah principles, it offers a distinct alternative to conventional microfinance, emphasizing ethical practices and community support. This qualitative study investigates the impact of Islamic microfinance on beneficiaries, focusing on their experiences and perceptions.

Methods: This case study on Akhuwat Islamic Microfinance (AIM) employs a qualitative research design, utilizing semi-structured interviews to gather in-depth insights from diverse stakeholders. Participants include repeat beneficiaries and senior managers of AIM. Data were analyzed using thematic analysis to identify recurring themes and patterns related to the benefits and challenges of Islamic microfinance.

Results: The findings reveal that Islamic microfinance significantly enhances financial inclusion and socio-economic well-being among beneficiaries. Key themes include:

- Empowerment and economic stability, as participants reported increased income and improved living standards.

- Strong community ties and social cohesion fostered by the ethical principles of Islamic finance.

- Challenges in accessibility and scalability. Participants highlighted the importance of trust and ethical practices in fostering positive outcomes, underscoring the unique value proposition of Islamic microfinance.

Conclusion: This study underscores the potential of Islamic microfinance to drive socio-economic development while highlighting the need for addressing accessibility and scalability challenges.

Document Type

Restricted Access

Submission Type

Thesis

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