Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan
In recent years, banks in Pakistan and the Middle East and North Africa (MENA) region have become increasingly interested in targeting the small and medium enterprise (SME) sector and have realized that many small businesses demand Shariah-complian...
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| Format: | Working Paper |
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International Finance Corporation, Cairo
2017
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| Online Access: | http://documents.worldbank.org/curated/en/506171487156711093/Islamic-banking-opportunities-across-small-and-medium-enterprises-Pakistan http://hdl.handle.net/10986/26098 |
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okr-10986-260982021-05-25T08:57:36Z Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan International Finance Corporation small and medium-sized enterprises Islamic finance business environment SME access to finance microfinance In recent years, banks in Pakistan and the Middle East and North Africa (MENA) region have become increasingly interested in targeting the small and medium enterprise (SME) sector and have realized that many small businesses demand Shariah-compliant banking. To provide clarity on the subject, International Finance Corporation (IFC) commissioned a study to better understand the demand and supply for Islamic banking products (both asset and liability products as well as other banking services) in the SME sector in Pakistan. This report on Pakistan reveals a new to bank Islamic funding and depository opportunity, primarily due to un-served and underserved SMEs (approximately 20 percent to 25 percent), who do not borrow from conventional banks due to religious reasons. In order to reach out to SMEs demanding Islamic products, and as part of IFC’s initiative to enhance its SME investment and advisory services offerings to Islamic financial institutions, one needed to better understand the market from both the demand and supply sides in order to identify any gaps or niches where IFC can assist and add value. IFC commissioned a study in nine countries of the MENA region, which includes Pakistan, to better understand the demand and supply for Islamic banking products (both asset and liability products and other banking services) in the SME sector. The countries chosen for this study are: (1) Iraq, (2) Pakistan, (3) Yemen, (4) Kingdom of Saudi Arabia, (5) Egypt, (6) Lebanon, (7) Morocco, (8) Tunisia, and (9) Jordan. This regional executive summary provides a comparative analysis of the SME potential across these countries and the opportunities available to Islamic institutions to tap this potential. The nine individual country reports provide a deeper insight into the SME landscape and potential opportunities for Islamic banks in each country. The reports also highlight the measures that banks may need to take to successfully target the Islamic banking potential of SMEs. For more publications on IFC Sustainability please visit www.ifc.org/sustainabilitypublications. 2017-02-21T17:59:04Z 2017-02-21T17:59:04Z 2017-01 Working Paper http://documents.worldbank.org/curated/en/506171487156711093/Islamic-banking-opportunities-across-small-and-medium-enterprises-Pakistan http://hdl.handle.net/10986/26098 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Cairo Publications & Research Publications & Research :: Working Paper South Asia Pakistan |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
small and medium-sized enterprises Islamic finance business environment SME access to finance microfinance |
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small and medium-sized enterprises Islamic finance business environment SME access to finance microfinance International Finance Corporation Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan |
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South Asia Pakistan |
| description |
In recent years, banks in Pakistan and
the Middle East and North Africa (MENA) region have become
increasingly interested in targeting the small and medium
enterprise (SME) sector and have realized that many small
businesses demand Shariah-compliant banking. To provide
clarity on the subject, International Finance Corporation
(IFC) commissioned a study to better understand the demand
and supply for Islamic banking products (both asset and
liability products as well as other banking services) in the
SME sector in Pakistan. This report on Pakistan reveals a
new to bank Islamic funding and depository opportunity,
primarily due to un-served and underserved SMEs
(approximately 20 percent to 25 percent), who do not borrow
from conventional banks due to religious reasons. In order
to reach out to SMEs demanding Islamic products, and as part
of IFC’s initiative to enhance its SME investment and
advisory services offerings to Islamic financial
institutions, one needed to better understand the market
from both the demand and supply sides in order to identify
any gaps or niches where IFC can assist and add value. IFC
commissioned a study in nine countries of the MENA region,
which includes Pakistan, to better understand the demand and
supply for Islamic banking products (both asset and
liability products and other banking services) in the SME
sector. The countries chosen for this study are: (1) Iraq,
(2) Pakistan, (3) Yemen, (4) Kingdom of Saudi Arabia, (5)
Egypt, (6) Lebanon, (7) Morocco, (8) Tunisia, and (9)
Jordan. This regional executive summary provides a
comparative analysis of the SME potential across these
countries and the opportunities available to Islamic
institutions to tap this potential. The nine individual
country reports provide a deeper insight into the SME
landscape and potential opportunities for Islamic banks in
each country. The reports also highlight the measures that
banks may need to take to successfully target the Islamic
banking potential of SMEs. For more publications on IFC
Sustainability please visit www.ifc.org/sustainabilitypublications. |
| format |
Working Paper |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan |
| title_short |
Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan |
| title_full |
Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan |
| title_fullStr |
Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan |
| title_full_unstemmed |
Islamic Banking Opportunities Across Small and Medium Enterprises : Pakistan |
| title_sort |
islamic banking opportunities across small and medium enterprises : pakistan |
| publisher |
International Finance Corporation, Cairo |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/506171487156711093/Islamic-banking-opportunities-across-small-and-medium-enterprises-Pakistan http://hdl.handle.net/10986/26098 |
| _version_ |
1764460955596488704 |