The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (OIC) Countries

The paper identifies gaps currently existing in Organisation of Islamic Cooperation (OIC) countries on Shariah-compliant micro-finance and financing for small and medium enterprises and the state of traditional re-distributive instruments. The paper concludes that policy makers in Muslim countries who are serious about enhancing access to finance or "financial inclusion" should exploit the potential of Islamic instruments to achieve this goal and focus on improving the regulatory and financial infrastructure to promote an enabling environment.