Updated Sep 05, 2019
The innovation has no owner
Claim itFocus Areas:
Economic Growth and Trade
Implemented In:
Egypt
Partly because of a common perception among religious Muslims that debt is prohibited under Islamic law, financial inclusion rates remain much lower in Muslim-majority countries than in non-Muslim majority countries.
This will help J-PAL design a microequity product that could increase financial access for Muslims who avoid conventional debt for religious reasons, and potentially appeal to customers beyond the Muslim world who are simply debt averse. Such a product could be scaled up across Egypt through the country’s large microfinance federation; it could also be scaled up in other Muslim-majority countries through J-PAL MENA’s strategic partnership with the Islamic Development Bank. In addition, the study will help shed light on ongoing efforts to understand when and why microcredit works and doesn’t work in general.