Funding shortfall of $13bn seen for Mena SME Islamic financing

More than one-third of small and medium enterprises in the Middle East and North Africa are out of the purview of banking sector and there exists a funding gap of up to $13bn for SME Islamic financing in the region.
Moreover sukuk, or Islamic bonds, have gained real momentum with many non-Muslim countries raising funds through these instruments, said Malaysian Premier Dato Sri Mohamad Najib bin Tun Haji Abdul Razak at the 11th World Islamic Economic Forum (WIEF), which got underway here yesterday and attended by more than 3,000 delegates from 98 countries.
“35% of SMEs in the Mena are excluded from the formal banking sector. Indeed, there is a financing gap of up to $13bn for SME Islamic financing in this region,” Razak said, quoting a study by International Finance Corp (IFC).