October 1, 2019
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
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
– 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.