MAKHLOUFI, LAHCENEMIMOUNE, TAHAR2019-03-052019-03-052017http://dspace.univ-msila.dz:8080//xmlui/handle/123456789/10910The purpose of this paper is to investigate the effect of Islamic financing on the SMEs performance. The Strategy theory used to confine the factor of financing source as to determine the successful of SMEs performance. Islamic Financing is a vital source of fund which based on Shariah law which can be categories into three parts namely sale based, equity based and lease based. The integration between these two segments is crucial as both shared the same value which is Islamic thought. This paper review and illustrate that Malaysia has a very encouraging history of Islamic banking and has big potential to succeed in this area. However, some areas need to be improved, as suggested in the paper. It also found that the Malaysian model in developing Islamic financial industry can be taken as a benchmark in the development of such industry in other countries.enSMEs performance; Islamic Financing; SuccessArticle