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The purpose of this paper is to investigate factors that determine rural households’ access to finance provided by Islamic microfinance institutions (MFIs) in Indonesia.

A two-year panel data set with logistic regression is used to identify the determinants of access to finance by rural households. The study sample comprises of 289 Islamic MFIs’ clients and 140 non-clients from East Java, Indonesia. The clients consist of 111 rural households with profit and loss sharing (PLS) schemes, 162 clients with non-profit and loss sharing (non-PLS) schemes and 16 clients with both schemes.

The empirical results show that age, gender and income influence rural households to access finance provided by Islamic MFIs. The results show an increase in age and income increase the respondents’ likelihood to access finance. Further, male respondents are more likely to access finance from Islamic MFIs than females.

The empirical analysis is limited to data obtained from East Java province in Indonesia, and other provinces may show different results. However, this study is among the few studies that investigate access to finance from Islamic MFIs based on PLS and non-PLS schemes.

The novelty of this study lies in the unique financing accessibility between PLS and non-PLS schemes in Islamic MFIs. This study will be an important addition to the emerging literature on Islamic microfinance.

The purpose of this study is to extend the extant literature on the relationship between financial risk tolerance (FRT), awareness of Islamic financial principles (AWIF) and positive financial behaviour (FB) on financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners by principally investigating the mediating effect of access to Islamic financing (AIF) on these relationships.

A quantitative survey method of data collection through a self-administered questionnaire. The sample of 384 MSME owners was selected in which 208 questionnaires were retrieved and analysed using the partial least square structural equation modelling (SEM).

The result shows that the relationships between FRT and AIF as well as FB and AIF are not significant. However, the AWIF–AIF relationship was found to be positively significant. Moreover, only the mediating effect of AIF on the AWIF–FS relationship was established.

The result implies that AIF could strongly influence the FS of MSME owners, and the AWIF–FS relationship is better explained with sufficient AIF. However, AIF could not mediate the relationships between FRT–FS and FB–FS. Therefore, policymakers and MSME owners should emphasize on AWIF and AIF to enhance FS.

This study pioneers the examination of the mediating influence of AIF on FRT, AWIF, FB and FS of MSME owners in a single framework. Despite the importance of MSME owners on economic sustainability, literature on MSME owners' FS is lacking expressly among developing countries, particularly in Nigeria. This study also revealed new theoretical and practical knowledge by illuminating the mediating effect of AIF on AWIF–FS relationship.

Muslim entrepreneurs face various obstacles when starting their business, especially in gaining access to financing. Some financing practices have some Sharia violations, so this paper tries to explore the opportunities and challenges of one financing alternative for Muslim entrepreneurship development in Indonesia that fully complies with Sharia principles. This paper aims to further understand the concept of venture capital and how it relates to Islamic teachings, and the paper ends with the suggestion for future research direction.

This study uses qualitative methods with descriptive and exploratory analysis. A case study approach using semi-structured in-depth interviews with several key informants were conducted to identify the opportunities and challenges for Muslim entrepreneurs in gaining access to Islamic financing. Various literary syntheses are also provided to better understand alternative financing for business development of Muslim entrepreneurs.

Muslim entrepreneurship, depending on their goals and needs in obtaining financing, uses different models in the process of agreements with capital-funding institutions based on Sharia principles. Sharia venture capital is one alternative financing that gives freedom for Muslim entrepreneurs to develop their business based on the Islamic system, without thinking about the requirements that must be met in obtaining access to the financing. However, it seems that this scheme still has relatively low interest, especially from Muslim entrepreneurs because they do not know the information and procedures of Sharia venture capital.

Some policy implications include increasing capital from Sharia venture capital institutions, the role of the government in providing adequate policy support and incentives and broader socialization and education about the existence and importance of developing Sharia venture capital. Practical implications include useful information for Muslim entrepreneurs to address financing issues in their entrepreneurial activities and suggest insights for future research.

This study provides the link of financial access for Muslim entrepreneurs to Sharia venture capital as a new financing business innovation. Thus, it contributes to the literature on Sharia venture capital and Muslim entrepreneurship. The authors also propose some useful recommendations for further research in this field.

The purpose of this study is to examine the effect of risk sharing and non-risk sharing instruments on both the profitability of Islamic banks and the economic growth of the country. This study also aims to improve the profit and loss sharing-based asset growth of Islamic banks.

The data for this study are obtained from the annual reports of all Islamic banks from Bangladesh using Bank scope database and annual report for the period of 1983–2014. The research uses Autoregressive Distributive Lag approach.

The findings reveal that risk sharing instruments are positively related to profitability and the economic growth of the country. This study also finds that non-risk sharing instruments play a predominant role in the profitability of the Islamic bank but are negatively related to the economic growth of the country.

Banks and other financial institutions need to pay greater attention to systemic risk created by risk transfer and apply risk sharing methods of financing more vigorously than has hitherto been the case.

This study will also contribute to the literature as relatively few Islamic financial literatures deal with the relationship between equity financing and profitability which may make a strong contribution to the area of Islamic finance.

The purpose of this paper is to analyze the changes in Islamic financing literacy and draw a comparison between the intentions of Muslim and non-Muslim micro and small entrepreneurs after receiving counseling. It also observes the role of religion in the relationship between literacy and the intention to use Islamic financing.

The participants were of 60 owners of micro and small entrepreneurs who were made up of 30 Muslims and 30 non-Muslims. An Islamic financing counseling was conducted on 30 non-Muslims, and data were obtained relating to literacy and intention after the counseling. The data were analyzed using statistical descriptive, associative and comparative test.

There is a significant increase in literacy and intentions of non-Muslim entrepreneurs after receiving the counseling. It is also discovered that religious factor no longer influences literacy and intention of using Islamic financing after receiving the counseling.

Counseling is an effective way to establish non-Muslims’ literacy and lead their intention toward the use of Islamic financing products.

There is a need to give proper knowledge about the importance of Islamic financing to non-Muslims by emphasizing the monetary values and benefits to diversify the market segment.

The finding proves that Islam, in every aspect including the economy, is a blessing to the entire universe or as Muslim says, ‘rahmatan lil “alamin”.

Previous studies about Islamic financing have been mostly conducted by using survey among the Muslim population. Therefore, this study combines both survey and experiment by providing Islamic literacy counseling to non-Muslims.

Over the past decades, Islamic finance has expanded its presence to many countries including post-Soviet region. The purpose of this paper is to empirically investigate this phenomenon in Kazakhstan by adopting qualitative sociological approach. The study also aims to provide vital information and propose recommendations for market participants to contribute to the development of Islamic finance industry in Kazakhstan.

Primary data were gathered using the qualitative method of in-depth expert interviews with nine Islamic finance professionals representing Islamic banks, ijarah companies, funds and development institutions in Kazakhstan who occupy senior positions (directors, managers, heads of departments, etc.). Furthermore, the primary data of interviews were analyzed and processed using another qualitative method of cognitive mapping, the essence of which is to graphically display the concepts that are most often used by informants.

The study has shown that first there is a demand for Islamic finance among Kazakh business and population. At the same time, Muslims are not the only consumers of Islamic financial services; therefore, it is affordability rather than religiosity that is an important criterion for choosing Islamic finance. Second, murabaha and ijarah are the two most popular Islamic financial products in Kazakhstan, while equity-based instruments are hardly ever used. Third, Kazakhstan government policy toward Islamic finance received controversial assessments of experts: the state support is declared, but specific actions required by the market participants are not taken. Fourth, key factors that significantly limit the development of the Islamic finance market in Kazakhstan include a shortage of supply, which, in turn, is strongly associated with the second factor – limited funding of local Islamic finance institutions, the absence of insurance (or guaranteeing) system of investment accounts of the local Islamic banks, insufficient economy of scale, lack of convenient service and weak marketing policy of the existing Islamic banks and, finally, lack of educational programs.

The study reveals the potential development of Islamic finance in Kazakhstan which is a rarely studied topic. The findings and recommendations of this study can be used by the regulators, market players and policymakers of Islamic finance industry in Kazakhstan, post-Soviet and other Islamic finance-oriented countries.

This study offers new insights on the future of Islamic finance in Kazakhstan: in long term, the development will be determined by new financial technologies – Islamic FinTech, but in short term – by Islamic windows (currently not allowed by Central Bank) that will help to significantly expand the audience, increase awareness and demand for Islamic finance among local businesses and public. The current study is original, important and up-to-date, as it uses an approach that sources primary data in the form of experts’ point of view instead of relying on literature or document analysis. It is not a mere theoretical study of the literature but an empirical investigation of the problem. Moreover, it seeks to contribute to the Islamic finance literature in the post-Soviet region, particularly from the experts’ perspective.

The paper examines the relationship between Islamic banking and the growth of the economy in Nigeria in both the short run and long run.

The study employs quarterly secondary time series data for Islamic banking as well as major macroeconomic variables to study the contribution of Islamic banking to the economy of Nigeria. It employs autoregressive distributed lags (ARDL) and error correction model (ECM) approaches from 2013 quarter 1 up to 2020 quarter 2.

The results show that Islamic banking has a positive contribution to Nigeria's economy in both short run and long run, but this contribution is insignificant.

Policymakers should endeavor to redesign the country's financial architecture and come up with policies that can support the growth of Islamic finance sector. This will significantly strengthen Nigeria's position as one of the leading Islamic finance hubs in Africa.

This is the first study to examine the contribution of Islamic banking to the Nigerian economy according to the best knowledge of the authors.

The purpose of this paper is to augment the present literature on the relationship between relative financial deprivation (RFD), financial anxiety (FA), access to Islamic financing (AIF) and financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners. Principally, the study examines the moderating role of AIF on the RFD–FS and FA–FS relationships.

Quantitative survey approach was used to collect data through self-administered questionnaires from MSME owners. Partial least square (PLS) structural equation modelling (SEM) version 3.2.7 was used to analyse 208 retrieved questionnaires.

The results confirm that the RFD–FS relationship is negatively significant, but the FA–FS relationship is not significant. However, the direct relationship between AIF and FS is positively significant. Conversely, AIF failed to moderate the RFD–FS and FA–FS relationships.

The study specifies that the existence of RFD will decrease the FS of MSME owners, and therefore, RFD should be eliminated at all costs. However, the greater the AIF, the stronger will be the FS of MSME owners. Thus, policymakers and owners of MSMEs should emphasize on AIF to foster FS. Nevertheless, AIF could not redirect the negative impact of RFD and FA on MSME owners’ FS.

This study, to the best of the authors’ knowledge, is the first to examine the moderating role of AIF on the RFD–FS and FA–FS relationships among MSME owners. Notwithstanding the importance of small business owners for economic development, the literature on MSME entrepreneurs FS has been neglected. This study also uncovers new theoretical knowledge by revealing the inability of AIF to alter the RFD–FS and FA–FS relationships.

The purpose of this paper is to assess the potential of Islamic financing schemes for microfinancing purposes.

The paper contends that Islamic finance has an important role to contribute for furthering socio‐economic development of the poor and small (micro) entrepreneurs without charging interest (read: riba').

Islamic finance offers various ethical schemes and instruments that can be advanced and adapted for the purpose of microfinance. Comparatively, qardhul hasan, murabahah, and ijarah schemes are relatively easy to manage and will ensure the capital needs (qardhul hasan), equipments (murabahah) and leased equipments (ijarah) for potential micro‐entrepreneurs and the poor. Participatory schemes such as mudarabah and musharakah, on the other hand, have great potentials for microfinance purposes as these schemes can satisfy the risk sharing needs of the micro‐entrepreneurs.

The paper is only conceptual and does not aim to empirically examine the issues or theories. However, the paper will definitely be useful to develop hypotheses for future research, especially in this relatively new area of Islamic microfinance.

The Islamic concepts of microfinance will be of interest especially to many microfinance institutions. The paper will also be a good introduction to practitioners in the microfinance sector to understand the relevance and limitations of Islamic financing schemes.

Islamic financing schemes are argued as having moral and ethical attributes that can effectively motivate micro‐entrepreneurs to thrive. These schemes, however, require specialized skills in managing risks inherent in the structure of the contracts. In theory, different schemes can be used for different purposes depending on the risk profile of the micro‐entrepreneurs.

Islamic finance is becoming a core part of the financial services economy in the Middle East countries. There is a strong likelihood that Islamic finance is also driving the expansion of trade in insurance services. However, research on Islamic finance’s effect on trade in insurance services is scant. This study aims to fill this gap by investigating if Islamic finance has promoted trade in insurance services.

This study adopts the gravity modelling framework and the panel data estimation procedure in understanding the effects of Islamic finance on trade in insurance.

The empirical results reveal a statistically significant positive correlation of Islamic finance with the exports and imports of insurance services. Economic sizes (domestic and trading partners), growth in trading partners, cost of doing business, legal rights and financial freedom are other statistically significant determinants.

It makes a positive contribution to the Islamic financial services literature. Islamic finance is an integral part of the conventional banking and financial sector in the Middle East that actively fosters the expansion of insurance services that need support, given its essential role in services trade.

This study is unique as it directs attention to the role of Islamic finance in fostering trade in insurance services within an inclusive modelling framework that has been overlooked in the Islamic finance literature.