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Mauritius Royalty Program a Model for Islamic SME Financing

Mauritius Royalty Program a Model for Islamic SME Financing

One of the challenges facing Islamic finance has been how to move into more innovative areas of financing that allow the incorporation of greater sharing of business risk with the companies being financed. This is not only viewed as being a more "authentic" structure for Islamic banks, but could allow them to better reach SMEs, which may find value from the increased flexibility. Following the financial crisis, the Mauritian government established an organization - the Mauritius Business Growth Scheme (MBGS) - to support and provide access to financing for SMEs that could provide an example for how to better incorporate risk-sharing products into Islamic SME financing.

Islamic BankingCredit Risk & Scoring