Islamic microfinance represents a growing niche within the broader microfinance and Islamic finance sectors, responding to the financial needs of Muslim-majority populations who seek products aligned with Islamic principles. Despite the availability of conventional financial services, a significant portion of individuals in Muslim-majority countries, estimated at 72%, remain excluded from formal financial systems. This exclusion stems from concerns about the compatibility of conventional financial products with Islamic law, particularly the prohibition of interest-based transactions. RIYAQ Microfinance and Training Facility recognizes the potential of Islamic microfinance to bridge this gap and provide financial access to millions of Muslims who currently reject conventional microfinance offerings.
