Despite their importance, small and medium enterprises (SMEs) still face several problems, such as, in particular, access to finance, which is a typical challenge in developing countries. Islamic bank financing products may help to solve this problem. The main principal of the Islamic financial system can be summarized in the following: prohibition of interest, risk sharing, prohibition of activities with element of uncertainty, prohibition of gambling activities, prohibition of the production and sale of goods and services that are prohibited in Islam, sanctity of contracts, moral dimension and zakah. The aim of this book is to study the developmental role of small and medium enterprises. Moreover, attempts to investigate the challenges and limitations facing the use of Islamic finance to promote Small and Medium Enterprises (SMEs). finally, this book presents opportunities for Islamic banks in resolving the funding gap faced by small and medium enterprises.