The role of Islamic banks in developing the Small and Medium enterprises in Palestine. رسالة ماجستير

Abstract

This study aimed to highlight the role of Islamic banks in developing small and medium enterprises in Palestine through analyzing the nature and methods and procedures applied in Islamic banks to finance these projects, with a focus on the effectiveness of various forms of Islamic finance and the extent of use by Islamic banks in Palestine for the purpose of granting finance for small and medium enterprises, It also aimed to identify the most important financial needs of these projects and the difficulties and obstacles faced by these projects in raising funds for its various operations and activities. For this purpose, this study used the analytical descriptive approach to achieve research objectives. Moreover, the survey questionnaire was distributed to 74 owners of small and medium enterprises in Palestine. Whereas 50 forms in the West Bank and 24 in the Gaza Strip. All these forms were retrieved and used for analytical purposes. As a result, this study revealed that there is a strong positive relationship between the procedures for granting and implementing Islamic finance and the development of small and medium enterprises in Palestine. This indicates that the method of Murabaha in financing these projects as it is the least risky form of financing, and the study found a set of constraints that limit the development and growth of these projects in Palestine, where the most important obstacles represented in the political and economic instability. in addition to the problems of obtaining funding from banks that require a high volume of guarantees that don’t commensurate with the ability of these projects. This thesis found that the development of SME depends on the sources of funds used in the project itself. The finance used is important in growth of SME in Palestine. VI The study recommended that it is necessary that Islamic banks expand their work to focus on other important forms to these projects as Mudaraba and musharka. As the study also recommended that it is crucial to provide qualified areas within the municipalities boundaries for the work of these projects as well as providing the logistics facilities and organizing the work of this sector within these areas