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Small and medium enterprises are key pillars of the economy

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 Small and medium enterprises are key pillars of the economy Empty Small and medium enterprises are key pillars of the economy

Post  Admin Wed Mar 29, 2017 5:45 pm





30/3/2017 12:00 am

Baghdad / Emad Al-Amara
Islamic banks play a role in the consolidation of the economy through adopting a speculative approach to ownership of most areas of business, industry, tourism and service, whether dealing with this method individuals or companies and only one of the possibilities of the financial bank. The Islamic Bank, and according to its potential, to help investors, They are successful in project management and Echtzlon period of time to acquire these projects in the productive sectors, so that increases the bank of dealing with the best speculators and excluded from the ratio of low profits.

And speculation is a contract between two people, one of which provides money to the other to trade a share of profit, if there is no profit and money to the owner, and if it is a waste of money, and not on the money that is a bit of inferiority, .

Economic Academy Jabr single vocalist, explained that the speculative formula in Islamic banks have the flexibility to engage in types of sectors to set up production, commercial and service projects at the level of long, medium and short deadlines.

Al-Manshid said in an interview with Al-Sabah that this formula gives the Islamic Bank a role to promote the requirements of development performance in the Islamic economies of developing countries, stressing that what enhances and helps in its success under the experience of Islamic banks is the supervisory and supervisory role exercised by the committees of these banks.

She pointed out that supervision of investment projects and follow-up performance and accountability at the time of default and the possibility of development achieves greater successes in the future.

The formula of speculation is consistent with the problem of developing economies besides supply because of the weak flexibility of this apparatus to ensure production on the one hand. On the other hand, the profit motive necessitates studying the demand side of production for the project by the Islamic Bank and ensuring its availability, thus ensuring profits to realize the developmental role of the Islamic Bank .

Dr. Al-Manshid stressed the importance of adopting the Mudaraba formula in financing small and medium enterprises. The importance of these projects is that SMEs are the backbone of the economies of both developed and developing countries because of the tangible dimension of these projects in the structure of global economies , they make up 75 percent of the total advanced industries make up 85 percent of the total projects in the Arab world, and that these projects represent a lifeline out of the economic crisis for its ability to develop the economy and modernize the industry and the face of unemployment and the preparation of sitting Labor and activating women's participation and create a spirit of solidarity and competition between the projects and the development of the standard of living for individuals and narrowing the gap between savings and investment and expand the ownership base of the private sector and increasing exports and the replacement of imports, which reflected positively on the balance of payments and contribute to the exchange stability and are reluctant to higher prices.

The vocalist, according to World Bank estimates, the average small and medium enterprises up to 46 percent of GDP and accounts for about 80 percent of the global volume of projects, and contribute 35 percent of the handicraft industries in the world, accounting for 65 percent of gross domestic product in Europe, compared to 45 percent in the United States, and is a project counting 95 percent of the total number of economic facilities in Japan and operates 72 percent of the gain of the total employed in the labor market, and achieved 43 per cent of the total sector sales and achieve about half of the profits of companies in
Public.

In the Arab world, small and medium enterprises are gaining importance from a range of considerations related to the characteristics of their economic and social structures and the ratios of availability of factors of production, spatial distribution and activity.

In Yemen, small and medium enterprises contribute 96% of GDP and 77%, 59% and 25% in Algeria Palestine and Saudi Arabia respectively. In Jordan, these projects account for 92 percent of total projects and contribute 28 percent of GDP and about 75 percent of private sector employment in Egypt. These projects represent 86 percent of the total number of projects. Industrial projects in the UAE and 76 per cent in the Kingdom of Bahrain, accounting for 83 per cent of the number of industrial enterprises in the GCC.

http://www.alsabaah.iq/ArticleShow.aspx?ID=134490

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