HOW ISLAMIC DEVELOPMENT FINANCE SUPPORTS BUSINESS GROWTH: THE ROLE OF THE ISLAMIC DEVELOPMENT BANK IN MALAYSIA

In many developing and emerging economies, access to finance remains one of the most serious obstacles to business growth. Small and medium-sized enterprises (SMEs), which form the backbone of employment and innovation, often struggle to obtain long-term and affordable funding. Conventional commercial banks usually prioritize short-term profitability and risk minimization, leaving many productive business projects underfinanced. In this context, Islamic development finance has emerged as a powerful alternative for supporting real economic activity.