Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Impact of Islamic Financing Instruments on Unemployment in Palestine During the Period (2005–2023): A Quantitative Analytical Study

Nizar Mohammed Abu Selmiya, Syahidawati Binti Haji Shahwan

http://dx.doi.org/10.6007/IJARBSS/v15-i12/27213

Open access

This study aims to examine the impact of Islamic financing instruments on unemployment rates in Palestine during the period 2005–2023. The researcher employed a quantitative methodology based on data collected from three Islamic banks operating in Palestine: Palestine Islamic Bank, Arab Islamic Bank, and Al-Safa Bank. Econometric models, including panel data analysis and the Autoregressive Distributed Lag (ARDL) model, were applied to investigate the relationship between Islamic financing instruments and unemployment rates. The findings reveal a statistically significant relationship between Islamic financing tools and unemployment, confirming the vital role of Islamic finance in supporting productive projects and reducing unemployment levels.

Ahmed, H. (2011). Product development in Islamic banks. Edinburgh University Press.
Al Jamaal, M. (2012). Econometric measurement: Theory and application. Dar Al Mareekh Publishing.
Al Rifaee, H., & Abd, A. (2012). Islamic banks and their role in the process of economic development. Baghdad Journal of Economic Sciences, University of Baghdad.
Arab Islamic Bank. (2023). Annual report of the Arab Islamic Bank. https://www.aib.ps
Association of Banks in Palestine. (2023). Journal of the Association of Banks in Palestine (Issue 95). https://www.pabu.ps
Asutay, M. (2013). Islamic banking and finance: its role in the GCC and the global economy. In the Gulf Research Meeting.
Bahrain National Islamic Bank. (2023). Annual information. https://www.nbki.com/ar
Belkheiri, A. (2008). Istisna contract and its contemporary applications: A case study of the Islamic Development Bank (Unpublished master’s thesis). University of Hadj Lakhdar, Batna, Algeria.
Ben Miloud, M. (2008). Financing and investment standards in Islamic banks (Unpublished master’s thesis). University of Hadj Lakhdar, Batna, Algeria.
Brooks, C. (2008). Introductory econometrics for finance (2nd ed.). Cambridge University Press.
Central Bureau of Statistics – Palestine. (2016). Glossary of economic concepts and terms.
Central Bureau of Statistics – Palestine. (2016). Official statistical data. http://www.pcbs.gov.ps
Central Bureau of Statistics – Palestine. (2023). Official statistical data. http://www.pcbs.gov.ps
Chapra, M. U. (2008). The Islamic vision of development in the light of Maqasid al Shariah. Islamic Research and Training Institute.
El Gamal, M. A. (2006). Islamic finance: Law, economics, and practice. Cambridge University Press.
Haroun, A., Abu Hafizah, H., & Herzallah, N. (2016). Islamic banks in Palestine and the challenges they face. National University of Malaysia.
Islamic Bank of Palestine. (2023). Annual report of the Palestine Islamic Bank. https://islamicbank.ps
Islamic Bank of Palestine. (2023). Annual report. https://islamicbank.ps/
Islamic Development Bank. (2021). Annual development report: Prospects of Islamic finance in member states. Islamic Development Bank.
Islamic Development Bank. (2021). Annual Islamic development report. https://www.isdb.org
Safa Bank. (2023). Annual report. https://saqabank.ps/
Saleh, A. (2019). Islamic finance and its role in supporting small projects in Palestine. An Najah University Journal for Research.
Shafiq, A., & Rahman, M. (2020). Islamic finance and social justice: Empirical evidence from the microfinance sector. Journal of Islamic Accounting and Business Research, 11(4), 837–854.
World Bank. (2023). Economic report on Palestine. https://www.worldbank.org
World Bank. (2023). Palestinian economic report. https://www.worldbank.org

Selmiya, N. M. A., & Shahwan, S. B. H. (2025). Impact of Islamic Financing Instruments on Unemployment in Palestine During the Period (2005–2023): A Quantitative Analytical Study. International Journal of Academic Research in Business and Social Sciences, 15(12), 805–818.