Accelerating financial inclusion through Islamic finance institutions in Mauritania

Financial inclusion is seen as a catalyst for broad-based economic progress by encouraging investment, entrepreneurship, job creation, education, and healthcare. Consequently, it has the potential to diminish income disparities, alleviate poverty, and enable women to participate in inclusive economic growth. Nonetheless, the emergence of Islamic finance, increasingly recognized worldwide, offers a promising avenue for fostering financial inclusion, particularly in developing nations like Mauritania. Yet, the extent to which adherence to Islamic finance principles and the utilization of Islamic financial products contribute to improving access to formal financial services in Mauritania has not been thoroughly examined. Therefore, this study seeks to investigate the role Islamic finance can play in enhancing financial inclusion in Mauritania. To achieve this, the study explored the theoretical background of Islamic finance and its relationship with financial inclusion, factors of financial inclusion, the impact of individuals' perceptions on the usage of Islamic finance products. The study utilized both qualitative and quantitative methods, relying on primary and secondary data. Statistical analysis using SPSS software was employed to examine the factors of financial inclusion, the impact of individuals' perceptions on the usage of Islamic finance products, and the effect of Islamic finance on enhancing financial inclusion, through qualitative analysis of the questionnaire administered to various segments of society including employees and students. The study results indicated that Islamic finance has a positive relationship with financial integration, observed through both qualitative and quantitative analysis. Experimental investigations conducted in the study showed that factors of financial integration (gender, age, income, and educational attainment) influence financial integration. The study also revealed that awareness of financial inclusion is further enhanced by awareness of Islamic finance. Additionally, the study indicated that a significant portion of Mauritania resist integration, citing religious reasons as a barrier, making raising awareness of Islamic finance necessary for financial inclusion. Furthermore, the study concluded that Mauritania prefer integration through Islamic financial institutions. However, the Mauritanian experience in this area is relatively recent and in a legal and operational environment distinct from traditional institutions, which has led some to question its Islamic nature. This scientific message contributes theoretically and experimentally to the literature of financial inclusion by studying the determinants of using Islamic finance products and the impact of Islamic finance on enhancing financial inclusion in Mauritania. This was done through quantitative and qualitative measurements of the impact of Islamic finance on financial inclusion through the perceptions of individuals and stakeholders and their utilization of Islamic finance. Therefore, the study contributed to policy directions regarding financial inclusion and Islamic finance in Mauritania. Keywords: Financial inclusion, Islamic finance, Mauritania, and Accelerating.