JKAU: Islamic Econ., Vol. 36 No. 2, pp: 3-27 (July 2023) DOI:10.4197/Islec.36-2.1 3 A Proposed Financing Framework for SMEs: Exploring the Case of Ṣukūk Mahmoud G. Zakzouk Assistant Professor of Economics & Islamic Finance Faculty of Economic Studies & Political Science Alexandria University, Egypt Ahmed A. El-Masry Professor of Finance and Governance, Centre for Financial and Corporate Integrity (CFCI) Coventry University, UK M. Kabir Hassan Professor of Finance, Department of Economics and Finance University of New Orleans, USA Abdelrahman Yousri Abdelrahman Professor of Islamic Economics, Faculty of Economic Studies & Political Science Alexandria University, Egypt Received: 06 June 2023; Revised: 02 August 2023; Accepted: 07 August 23 Abstract. The purpose of this study is to explore the purported role(s) of employing Ṣukūk as a source of finance in the field of SMEs. This study contributes to the growing stream of SME financing studies by examining "why" and "how" Ṣukūk can be institutionalised as an additional innovative source. The study proposes an empirically-informed SME financing framework using Ṣukūk. To illustrate this, a qualitative approach is adopted using semi-structured interviews and publicly published secondary materials. Distinct from the previous literature and efforts, this study reveals the powerful role of Ṣukūk in financing SMEs, especially in the Organisation of Islamic Cooperation (OIC) developing economies. A multi-faceted financing framework is developed with two distinct SME Ṣukūk: investment Ṣukūk and charitable Ṣukūk. SME Ṣukūk can be institutionalised into a multi-scenario traditional model and a digital model based on the ideology of crowdfunding. SME charitable Ṣukūk can be institutionalised using two different Ṣukūk tools: Waqf and Ihsān. Keywords: SMEs; SME financing; Ṣukūk; financing framework; OIC countries; Waqf-based financing framework JEL Classification: G10, G15, G20, G21, G23 KAUJIE Classification: E23; H55; I0; I3; I6; J4; K0; K16