Islamic microfinance is one of new trend which appeared newly in finance

Islamic microfinance is one of new trend which appeared newly in finance. So it was funded by charitable program for destitute, disabled and needy people, before the concept of Islamic microfinance So this case study includes some policy recommendations to create small enterprises and alleviate poverty.
It was established to be common with Islam principles and to be sharia complaint through halal activities like(murabaha, mudarbah, musharkah, takaful, sukuk, Istanu, Bai Salam etc.….) and it will discussed in more details later on, as it should not invest in haram activities which include (gharar)(riba)(gambling).
The Islamic microfinance has increased and devolved in Muslim and western countries all over the world.
So now we have a case study in Palestine to represent a real case study at Islamic microfinance,Micro-credit was first introduced in 1980s in the Palestinian territory for the huge growing demand for financing from small and microenterprises, thereafter; the backbone of production and employment in Palestine from that time. It was established in Palestine to overcome the poverty and to achieve social and economic equally distribution. And the main reasons for the poor performance and the fluctuation of Palestinian economy have been attributed to the Israeli policy of limiting the free movement of goods and people from and to Palestine. According to World Food Program WFP (2014) Palestine economy went through a recession specially the Gaza faced a negative growth and had a sever effect on unemployment which went up to 43 percent. The youth unemployment in Gaza soared to 60 percent and overall unemployment in West Bank and Gaza increased to 27 percent in 2014. So the main purpose of this case study is to face the challenges to find solutions for them and to know the main opportunities in Islamic microfinance industry in Palestine through reviewing the current status of Islamic microfinance and financial position in Palestine But after appearance of Islamic finance the SMEs and entrepreneurs became existed and these lead to create job opportunities. The Islamic finance aim to get rid of any inequality between all Muslim nations, and they did. So all of these points will be discussed in more details at the case study.
Introduction
While conventional microfinance is huge and well developed, with wide all over the world, Islamic Microfinance has yet to enter its potential market. According to a survey by the Consultative Group to Assist and help the poor, the total number of Islamic microfinance accounts and the Clients at year 2007 were 380,000, which lead to up 0.5% of the microfinance industry’s total outreach products.
Islamic Microfinance is a new sector with a great potential to expand. The indications estimated that 72% of the population living in predominantly Muslim nations does not use financial services, because they do not follow the precepts of Islam. Although Muslims countries use conventional financial products, but a lot of surveys show that if they had the choice they would use sharia-compliance financial products.
One of Islam objectives is to be complaint with sharia, and that what we aim at Islamic finance. Today, the Islamic microfinance is concentrated in three countries: (Indonesia, Bangladesh and Sudan). According to CGAP study, 300,000 customers were concerned by the Islamic microfinance through 126 institutions operating in 14 countries. However, in Islamic countries, Islamic microfinance is still a tiny smallshare of Islamic microfinance. It often develops due to government support and changes in policy as in Pakistan, in 2007, where guidelines were developed to encourage and promote growth.
Unlike conventional finance, Islamic Microfinance is a new trend market in Islamic finance: Islamic banks provide financial assistance to people excluded from the banking system. Islamic microfinance has to be complied with principles of Islam and to involve in projects halal (allowed by sharia) away of investing in prohibited activities like: pork, gambling and miser. So by achieving all of these it will lead to social and economic equality and fairly distributions among nations.
Islamic Microfinance would help the 650 million Muslims who living with less than $ 2 a day and give them access easily to financial services. However, there are increases of numbers of people who use Islamic finance now days and a doubling of the number of suppliers, in recent years, the nascent industry continues to increase and struggle to develop. In a study on Microfinance, CGAP has studied the situation of the sector and. In collaboration with the French Development Agency, the CGAP has also conducted a survey in 2011 to better understand the current situation of supplyof Islamic microfinance. Although that there are huge increase in the number of suppliers and customers of Islamic microfinance sector but it is still dominated by a few suppliers in some countries that rely primarily on just two products (Murabaha and Qard Hassan). That’s why; the Islamic microfinance sector needs a concerted action.