Description

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SMEs play a key role in economic growth, job creation, local and regional development and social cohesion. Access to finance is a key prerequisite for the development and creation of SMEs. The Islamic financial industry has expanded rapidly during the last decade, with annual growth rates of more than 15%. Today, Islamic financial assets are estimated at more than $ 2 billion. In many Muslim-majority countries, Islamic banking assets grew faster than conventional banking assets. Islamic Finance has some characteristics that provide the opportunity to effectively support the financing, economic growth and development of SMEs. This study aims to analyze the adequacy of the Islamic financial system to finance SMEs.