Role of Zakat and Waqf in financing of small and medium enterprises (SMEs) in Algeria

October 1, 2019
Role of Zakat and Waqf in financing of small and medium enterprises (SMEs) in Algeria
Dr. Eiman Bu Mud



This research aims to highlight the capability of Zakat and waqf in financing the small and medium enterprises. Algeria endeavored to find appropriate solutions to the problem of financing this type of enterprises by mobilizing all the necessary financial support for the establishment and maintenance of these enterprises in the Algerian markets by providing several financing alternatives that are commensurate with the nature of these institutions, including the modes of Islamic finance, which have been widely known in recent years. Herein, the idea of studying the financing of small and medium enterprises on a legitimate basis in a distinct way, namely, investment of Zakat and Waqf funds emerged. The search reached a number of results: – The small and medium enterprises sector in Algeria occupies an important position, which is reflected in the size of its development from year to year and the number of jobs it has created; – Zakat and Waqf are considered non-profit Islamic financing methods that have contributed to supporting investment and combating unemployment in Algeria; – Despite the results achieved by the Zakat Fund in the financing of small and medium enterprises, they remain far from the expectations that were expected to be achieved; – The reality of the current role of investment property Waqf in Algeria is still far from achieving the desired goals, but there are promising projects that may bring quality transfer in this area. Keywords: Finance, Small and Medium Enterprises, Zakat, Waqf, Investment.

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