Abstract

Small and medium-sized enterprises (SMEs) are important in the economies of many countries at the present time. They are considered to be the best way to deal with the problem of unemployment. SMEs always facing the problem of financing. Many studies have shown that the traditional lending system is based on interest. This Paper aims to identify the means of Islamic finance available to small projects, showing their distinctiveness from the traditional means of financing and trying to evaluate the experience of Some Islamic banks. The study concluded with some results and recommendations. This includes that the concept of Islamic finance is built on Sharia rules, and is therefore characterized by a number of characteristics and features; most notably: the flexibility and diversity; to meet the various financing needs. This means that the Islamic finance is closely linked to the real economy compared with the conventional finance (usurious) which are based on the guarantees provided and the ability of the beneficiary to pa. Islamic finance is provided through means and methods based on participation and on the basis of an investment project has been evaluated for its economic feasibility and expected results. Finally, Islamic finance is also based on non-profit tools like Zakat and Waqf.