Trends in Sharia-Compliant Financial Inclusion

This document examines the current landscape of Islamic microfinance supply. The note states that although Islamic microfinance is gaining momentum, it is still dominated by a handful of service providers in a few countries offering primarily two products, murabaha and Qard-Hassan loans. Customers using Sharia-compliant products represent less than 1% of total microfinance outreach, revealing considerable room for growth.