In Syria microfinance is a new industry that started in 1997. The Rural Community Development Program (RCDP) of the United Nations Development Programme (UNDP) and the Syrian Ministry of Agriculture and Agrarian Reform (MAAR) establishes village credit and savings associations (sanadiq, plural of sanaduq) in the dry marginal region of Jabal al Hoss, southeast of the city of Aleppo. The sanadiq are considered promising institutions in providing microcredit to poor farmers, smallholders and landless workers in Muslim countries. The institutional framework enables sanadiq to operate where other formal lending institutions do not. Formal lending institutions have limited activity in poor rural areas due to time-consuming procedures, collateral requirements, lack of sufficient land assets or inappropriate land-tenure systems, and the inherent risk from irregular land productivity that results from low and variable rainfall. This article focuses on the impact of sanaduq microfinance on poverty, on what is needed to make the sanadiq self-standing institutions and whether the sanaduq system can be spread to other regions in Syria and the region.

Brandsma, J. and Burjorjee, D. (2004) Microfinance In the Arab States Building Inclusive Financial Sectors, United Nations Capital Development Fund (UNCDF), New York.

Burjorjee, D. and Brandsma, J. (2004) UNDP Syria, Microfinance Review, UNCDF microfinance, UNDP, New York.

Dhumale, R. and Sapcanin, A. (1999) An Application of Islamic Banking Principles to Microfinance, Technical Note, A study by the Regional Bureau for Arab States, UNDP with the Middle East and North Africa Region, World Bank, Washington DC.

Henry, C., Sharma, M., Lapenu, C. and Zeller, M. (2000) Assessing the Relative Poverty of Microfinance Clients, A CGAP Operational Tool, International Food Policy Research Institute, Washington, DC.

NACP (National Agricultural Policy Center) (2005) The State of Food and Agriculture in the Syrian Arab Republic, Ministry of Agriculture and Agrarian Reform, Damascus.

Omran, K. and Breek, Y. (2000) A Socioeconomic Study of the Rural Community at the Area of Jabal al Hoss, UNDP and Ministry of Agriculture and Agrarian Reform of Syria, Rural Community Development Project, Bnan.

Seibel, H. D. (2003) Rural Community Development in Jabal al Hoss: An Integrated Rural Development Project with a Focus on Sustainable Microfinance Institutions (sanadiq) and Income and Employment Generation, Interim assessment in phase II, UNDP, Mezzeh, Damascus.

Yunnus M. (2003) Expanding Microcredit Outreach to reach the MDG: Some Issues for Attention, Paper presented at the International Seminar on ‘Attacking Poverty with Microcredit’, PKSF, Dhaka, 8-9 January.

Brandsma, J. and Burjorjee, D. (2004) Microfinance In the Arab States Building Inclusive Financial Sectors, United Nations Capital Development Fund (UNCDF), New York.

Burjorjee, D. and Brandsma, J. (2004) UNDP Syria, Microfinance Review, UNCDF microfinance, UNDP, New York.

Dhumale, R. and Sapcanin, A. (1999) An Application of Islamic Banking Principles to Microfinance, Technical Note, A study by the Regional Bureau for Arab States, UNDP with the Middle East and North Africa Region, World Bank, Washington DC.

Henry, C., Sharma, M., Lapenu, C. and Zeller, M. (2000) Assessing the Relative Poverty of Microfinance Clients, A CGAP Operational Tool, International Food Policy Research Institute, Washington, DC.

NACP (National Agricultural Policy Center) (2005) The State of Food and Agriculture in the Syrian Arab Republic, Ministry of Agriculture and Agrarian Reform, Damascus.

Omran, K. and Breek, Y. (2000) A Socioeconomic Study of the Rural Community at the Area of Jabal al Hoss, UNDP and Ministry of Agriculture and Agrarian Reform of Syria, Rural Community Development Project, Bnan.

Seibel, H. D. (2003) Rural Community Development in Jabal al Hoss: An Integrated Rural Development Project with a Focus on Sustainable Microfinance Institutions (sanadiq) and Income and Employment Generation, Interim assessment in phase II, UNDP, Mezzeh, Damascus.

Yunnus M. (2003) Expanding Microcredit Outreach to reach the MDG: Some Issues for Attention, Paper presented at the International Seminar on ‘Attacking Poverty with Microcredit’, PKSF, Dhaka, 8-9 January.

Brandsma, J. and Burjorjee, D. (2004) Microfinance In the Arab States Building Inclusive Financial Sectors, United Nations Capital Development Fund (UNCDF), New York.

Burjorjee, D. and Brandsma, J. (2004) UNDP Syria, Microfinance Review, UNCDF microfinance, UNDP, New York.

Dhumale, R. and Sapcanin, A. (1999) An Application of Islamic Banking Principles to Microfinance, Technical Note, A study by the Regional Bureau for Arab States, UNDP with the Middle East and North Africa Region, World Bank, Washington DC.

Henry, C., Sharma, M., Lapenu, C. and Zeller, M. (2000) Assessing the Relative Poverty of Microfinance Clients, A CGAP Operational Tool, International Food Policy Research Institute, Washington, DC.

NACP (National Agricultural Policy Center) (2005) The State of Food and Agriculture in the Syrian Arab Republic, Ministry of Agriculture and Agrarian Reform, Damascus.

Omran, K. and Breek, Y. (2000) A Socioeconomic Study of the Rural Community at the Area of Jabal al Hoss, UNDP and Ministry of Agriculture and Agrarian Reform of Syria, Rural Community Development Project, Bnan.

Seibel, H. D. (2003) Rural Community Development in Jabal al Hoss: An Integrated Rural Development Project with a Focus on Sustainable Microfinance Institutions (sanadiq) and Income and Employment Generation, Interim assessment in phase II, UNDP, Mezzeh, Damascus.

Yunnus M. (2003) Expanding Microcredit Outreach to reach the MDG: Some Issues for Attention, Paper presented at the International Seminar on ‘Attacking Poverty with Microcredit’, PKSF, Dhaka, 8-9 January.

Brandsma, J. and Burjorjee, D. (2004) Microfinance In the Arab States Building Inclusive Financial Sectors, United Nations Capital Development Fund (UNCDF), New York.

Burjorjee, D. and Brandsma, J. (2004) UNDP Syria, Microfinance Review, UNCDF microfinance, UNDP, New York.

Dhumale, R. and Sapcanin, A. (1999) An Application of Islamic Banking Principles to Microfinance, Technical Note, A study by the Regional Bureau for Arab States, UNDP with the Middle East and North Africa Region, World Bank, Washington DC.

Henry, C., Sharma, M., Lapenu, C. and Zeller, M. (2000) Assessing the Relative Poverty of Microfinance Clients, A CGAP Operational Tool, International Food Policy Research Institute, Washington, DC.

NACP (National Agricultural Policy Center) (2005) The State of Food and Agriculture in the Syrian Arab Republic, Ministry of Agriculture and Agrarian Reform, Damascus.

Omran, K. and Breek, Y. (2000) A Socioeconomic Study of the Rural Community at the Area of Jabal al Hoss, UNDP and Ministry of Agriculture and Agrarian Reform of Syria, Rural Community Development Project, Bnan.

Seibel, H. D. (2003) Rural Community Development in Jabal al Hoss: An Integrated Rural Development Project with a Focus on Sustainable Microfinance Institutions (sanadiq) and Income and Employment Generation, Interim assessment in phase II, UNDP, Mezzeh, Damascus.

Yunnus M. (2003) Expanding Microcredit Outreach to reach the MDG: Some Issues for Attention, Paper presented at the International Seminar on ‘Attacking Poverty with Microcredit’, PKSF, Dhaka, 8-9 January.