Microfinance – defined as the access to and usage of quality financial services, including savings, credit, insurance and money transfer systems - is crucial for low-income households to manage cash flows to finance day-to-day living, manage risks, invest productively, and respond to financial shocks.
The low levels of financial inclusion in the Middle East and North Africa region, however, have left many with limited access to any sort of financial services. This is especially true for certain groups such as women and young people.
From the World Bank office in Tripoli, Representative Marouane El Abassi outlines his commitment to helping Libya build a new state, with a strategy that ensures the right skills and expertise are delivered at the right time.
Islamic Finance and Financial Inclusion: A Case for Poverty Reduction in the Middle East and North Africa?
The Middle East and North Africa region is home to about 70 million of the world’s poor (living on less than two dollars per day) and 20 million of the world’s extremely poor (living on less than US$1.25 per day). According to a recent Gallup survey, 95 percent of the adults residing in MENA define themselves as religiously observant. The combination of these two facts has produced a growing interest in Islamic finance as a possible tool for reducing poverty through financial inclusion among the region’s religiously conscious Muslim population.