MICROFINANCE IN SAUDI ARABIA

Abstract

Finance is broad in terms of concepts and applications. The main aim of microfinance started off by the developing countries to eradicate and mitigate poverty levels from their countries. They have so far been successful in attempting the results but have not reached the extent they were aiming for because of lack of knowledge and less discussed topic in finance. The purpose of this research is to identify the microfinance in Saudi Arabia because there is absence of literature in relation to the microfinance. This research also investigate the growth pattern of the microfinance sector, evaluate the different factors affecting the growth of the microfinance sector as well as the impact of the microfinance sector the economy of the low income earners and the entire economy. The methodology of the research is qualitative and analyses information from different sources available in relation to the microfinance. The results of the research showed that microfinance is yet to develop in Saudi Arabia and mostly is used for the SMEs. The research highlights the importance of the knowledge of microfinance and its use in the modern economy.