Economic Strategy

Economic Strategy

Economic Empowerment through Qardh al-Hasan Facilities: A Multidimensional Analysis of the Effects of Barakat Foundation Projects

Document Type : Original Article

Author
Theoretical Economics, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran.
10.22034/es.2026.577318.1936
Abstract
The Second Step of the Revolution statement, emphasizing justice in the distribution of public resources and the need to support the needy, draws a valuable framework for designing fair financing models. In this regard, due to increasing inequality and the limitations of the conventional financial system, Qardh al-Hasan, as a local, ethical, and risk-based mechanism, has a high capacity for the economic empowerment of low-income groups. This study aimed to investigate the impact of Qardh al-Hasan Barakat facilities on the economic empowerment of villagers in Hamedan province using composite legatum indicators. The research method was quantitative and based on field data from facility recipients. Therefore, the four main components of economic empowerment, including economic quality, investment environment, entrepreneurial conditions, and infrastructure, were identified by experts using the Delphi and integrated methods and categorized in the form of a 24-item questionnaire. The validity of the questionnaire was confirmed by experts and its reliability was confirmed by Cronbach's alpha coefficient, and the data were analyzed using the structural equation model and first- and second-order confirmatory factor analysis. The findings show that Qardh al-Hasan microcredit has had a positive, direct, and significant impact on improving economic quality (with the strongest effect) and the investment environment. The most important achievement of the project has been facilitating access to credit and creating direct and indirect employment in villages. However, its impact on entrepreneurship and infrastructure conditions has been more limited. The results confirm that sustainable empowerment through Qardh al-Hasan requires combining it with investment in improving the business environment and infrastructure.
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  • Receive Date 24 December 2025
  • Revise Date 08 April 2026
  • Accept Date 16 May 2026