Enhancing financial inclusion through Shari’a-compliant microfinance: A case study of Al-Amal Microfinance Bank in Yemen

Abstract

This study explores the role of Shari’a-compliant microfinance in advancing financial inclusion and improving socio-economic conditions, with a particular focus on serving the financial needs of marginalised populations in rural areas. Through a case study of Al-Amal Microfinance Bank in Yemen, the research highlights the bank’s effectiveness in expanding access to financial services via tailored solutions and strategic outreach. By deploying a network of financial and non-financial agents in remote areas, alongside digital banking platforms, Al-Amal Bank successfully mitigates barriers such as distance, cost and accessibility. The integration of electronic services further enhances financial access, contributing to more inclusive development across the country.