Poverty is one of the biggest problems of the 20th century. More than three billion people live in poverty in this world. Muslim societies lag far behind the rest of the world in addressing poverty. According to database of the World Bank (2021), approximately 698 million people, or 9 percent of the world's population, live in extreme poverty. They have an income of less than 1.90 US dollars a day. One of the main causes of poverty is limited access to financial services. Unlike commercial banks, microfinance organizations were established and are developing as a financial mechanism that serves the population with low income. This article mainly covers the types of Islamic microfinance and its role in reducing poverty. Scientifically based proposals and recommendations on the establishment of an Islamic microfinance organization in Uzbekistan have been developed.


Islamic microfinance institution poverty alleviation Islamic financial services zakat


How to Cite
Tursunov Anvar Sultonovich. (2023). The Role of Islamic Microfinance in Poverty Reduction. Texas Journal of Multidisciplinary Studies, 16, 23–26. Retrieved from https://zienjournals.com/index.php/tjm/article/view/3215


  1. Susan Johnson ( 2009). “Microfinance is dead! Long live microfinance. Critical reflections on two decades of microfinance policy and practice”. Published in Centre for Development Studies, University of Bath, UK.
  2. Ledgerwood, Joanna and Victoria White. 2006. Transforming Microfinance Institutions: Providing Full Financial Services to the Poor. The World Bank, Washington DC.
  3. Brandsma, Judith, and Deena Burjorjee. 2004. Microfinance in the Arab States: Building Inclusive Financial Sectors. New York: United Nations Capital Development Fund.
  4. ADB (Asian Development Bank). 2000. Finance for the Poor: Microfinance Development Strategy. Mandaluyong City: Asian Development Bank.
  5. Seibel, Hans Dieter, Wahyu Dwi Agung. 2006. “IIslamic microfinancein Indonesia.” Working Paper 2006 (2).Development Research Center, University of Cologne. http://hdl.handle.net/10419/23656.
  6. Gait, Alsadek H., and Andrew C. Worthington. 2009. “A Primer on Islamic Finance: Definitions, Sources, Principles, and Methods.” Discussion Paper Finance 2009 (09). Griffith Business School.
  7. World Bank (2008). Finance for All?: Policies and Pitfalls in Expanding Access. Washington DC, The World Bank.
  8. Kiran Siddiqi (2008). Potential of IIslamic microfinancein Pakistan. Dissertation submitted in partial fulfilment of the requirements for the degree of M.A. in MA Islamic Banking, Finance & Management (In association with Loughborough University).
  9. https://devinit.org/resources/poverty-trends-global-regional-and-national/