MOHAMED ABDI ELMI XALANE
DR. MARHANUM BINTI CHE MOHD SALLEH
Department of Finance Islamic International University of Malaysia (IIUM)
The objective of this paper is to empirically examine the role of Islamic microfinance in povertyalleviation in Mogadishu, Somalia. The study basically concerns on two objectives which are; toobserve the current practice of Islamic microfinance in Mogadishu, Somalia, and to investigate theeffectiveness of Islamic microfinance institutions in this country towards poverty reduction. Toachieve the research objectives, quantitative methodology is adopted and primary data is relied onfor analysis.Based onsurvey questionnaire, the sample of this research were microfinancerecipients in Mogadishu, Somalia. Via descriptive analysis,it is revealed that the current practice ofIslamic microfinance activities inMogadishu, Somalia is serving the poor people, but thesemicrofinance activities are not effectivein terms of the procedure of obtaining loans, enhancementof standard living, usefulness of the system, and the awareness level of the people.In addition, thefindings of this study will be beneficial forthe Islamic microfinance institutions, Islamic banks whoinvolve microfinance services, enterprises,academiciansand researchers who interest in this area.
Keywords: Microfinance, Islamic Microfinance Institutions, Poverty Alleviation, Current Practice, Effectiveness