27 Feb, 2020
The Islamic Research and Training Institute (IRTI), in collaboration with the Palestinian Economic Council, has delivered a training course attended by professionals from Palestinian institutions concerned with issues of financing small and medium enterprises (SMEs).
Delivered in Amman, Jordan on 23-26 December 2019, the training focused on the role of SMEs in economic empowerment. It covered the concepts and economics of small and medium enterprises, especially the contributions of SMEs to economic growth, providing job opportunities, activating initiatives and supporting economic sectors, especially the foreign trade sector.
The program also addressed other issues related to small and medium enterprises, such as knowledge-based Islamic finance, incubation of small business enterprises and entrepreneurship, creating an appropriate investment environment for pioneering graduates and youth, as well as public policies and regulatory framework for the small and medium business sector.
Training participants discussed practical cases on financing small and medium enterprises through sales and musharakah instruments in Islamic finance. Participants were also trained on how to use Islamic finance in entrepreneurial incubators and in community projects by applying mudarabah and diminishing musharakah instruments and by partnerships with the private sector.
The course featured presentation of successes stories in economic empowerment through SMEs financing. One of these is the experiment of the Islamic Development Bank (IsDB) in economic empowerment through the use of murabahah, salam, mudarabah, musharakah and ijarah.