The Role of Islamic Banks in the Development of Small and Medium Enterprises in Jordan

The study aims at highlighting the role of Islamic banks in the development of small and medium enterprises through the provision of necessary funding. It also aims at clarifying the privacy of Islamic financing system and its adaptation for small and medium enterprises. The study has taken the Jordan Islamic Bank as an example of Islamic banks in Jordan, and it concluded a number of results, most notably that the reality of Islamic finance for small and medium enterprises was very limited, as shown by limiting that Islamic banks on the two versions of Murabaha, and participation ended by ownership, within the program of financing craftsmen and professionals in the Jordan Islamic Bank, and not rely on any other formats of funding. The main reason behind choosing financing through Islamic banks is the belief of dealers in the legality of transactions in Islamic banks, but the guarantees and complications in procedures fall short in obtaining financing from Islamic banks. The researchers recommend at the end of the study that Islamic banks in Jordan need to take care of SMEs for their contribution in economic and social development, and recommend also relying more on other funding methods based on the apportionment of risks and profits that are relevant to SMEs, which diversify methods of financing and guarantee more contribution to the development of these institutions