Daha International University Academic Journal (DIUAJ)

ISLAMIC ASSET-BACKED FINANCING MODES AND GROWTH OF MANUFACTURING BUSINESSES IN MOGADISHU- SOMALIA

Sharmarke Mohamed Ali — 2025-08-08

This study was carried out to examine the relationship between Islamic asset-backed financing modes and growth of the manufacturing businesses in Mogadishu, Somalia. It was conducted under three specific objectives namely; (i) to examine the relationship between Murabaha financing and growth of the manufacturing businesses in Mogadishu, Somalia, (ii) to examine the relationship between Ijarah financing and growth of the manufacturing businesses in Mogadishu, Somalia and (iii) to examine the relationship between Istisna financing and growth of the manufacturing businesses in Mogadishu, Somalia. The researcher adopted a correlational research design. Data was collected by use of closed ended questionnaires from 136 respondents who were selected out of a total population of 209 by use of a simple random sampling technique. Pearson’s correlation coefficients were used to establish the relationship between the study variables. The correlations revealed that; (i) there is a strong positive relationship between Murabaha financing and growth of the manufacturing businesses in Mogadishu (r = .744, Sig. value < 0.01), (ii) there is a strong positive relationship between Ijarah financing and growth of the manufacturing businesses in Mogadishu (r = .540, Sig. value < 0.01) and (iii) there is a strong positive relationship between Istisna financing and growth of the manufacturing businesses in Mogadishu (r = .719, Sig. value < 0.01). Consequently, the study concluded that provision of Islamic asset-backed financing modes can facilitate growth of the manufacturing businesses in Mogadishu. This implies that attention should be paid to Islamic asset-backed financing modes in efforts geared towards growth of the manufacturing businesses in Mogadishu.

ISLAMIC MICROFINANCE AND POVERTY REDUCTION IN HODAN DISTRICT MOGADISHU, SOMALIA

Sharmarke Mohamed Ali — 2025-08-08

This study was carried out to investigate the relationship between Islamic microfinance and poverty reduction in Hodan District of Somalia. It was conducted under three specific objectives namely; (i) to examine the relationship between Murabaha and poverty reduction in Hodan District of Somalia, (ii) to find out the relationship between Qardhul hasan and poverty reduction in Hodan District of Somalia and (iii) to identify the relationship between Salam and poverty reduction in Hodan District of Somalia. The study employed a correlational research design and a quantitative approach. A simple random sampling technique was used to select 148 respondents who were involve in the study. Data was collected using self-administered questionnaires and was analyzed based on a Pearson’s Correlation Analysis as used in the SPSS computer program. The study findings based on Pearson’s correlations revealed that; (i) there is a statistically significant positive and weak relationship between Murabaha and poverty reduction in Hodan District of Somalia (r =.264, Sig-value = .003 < .01), (ii) there is a statistically significant positive and strong relationship between Qardhul hasan and poverty reduction in Hodan District of Somalia (r = .752, Sig-value =.000 < .01) and (iii) there is a statistically significant positive and strong relationship between Salam and poverty reduction in Hodan District of Somalia (r = .628, Sig-value = .000 < .01). Qardhul hasan was found to be the best model for poverty reduction in Hodan District of Somalia since it had a higher correlation coefficient of (r = .752) compared to the other models.

ORGANISATIONAL STRUCTURE AND EMPLOYEES’ PRODUCTIVITY: A STUDY OF MOGADISHU LOCAL GOVERNMENT, SOMALIA

Ali Abdi Yusuf — 2025-08-08

The study sought to investigate the effects of organizational structure on employee productivity in Mogadishu local government, Somalia, with two specific goals in mind: determining the contributions of formalization and investigating the effects of departmentalization on employee productivity. The behaviors and relationships between the variables were described using a descriptive research design and a quantitative approach. The target population was 160 people, including managers, politicians, NGOs, and civil society members, with a sample size of 144 chosen using Slovene's formula and simple random sampling to ensure equitable representation. Data were gathered using questionnaires, cleaned, coded, and analyzed with the Statistical Package for Social Scientists (SPSS), which used descriptive and inferential statistics.

The findings revealed that formalization increased employee creativity (Mean = 2.80), made recruitment easier (Mean = 2.58), and increased efficiency (Mean = 2.99), but was less effective at improving communication and service consistency. Departmentalization factors such as supplier characteristics (mean = 3.01), regulatory frameworks (mean = 2.70), and accountability demand (mean = 2.70) were rated satisfactory, while societal and environmental influences were rated unsatisfactory (mean = 2.31). Overall, the average mean score for both formalization and departmentalization on employee productivity was satisfactory (Mean = 2.71), indicating a moderate positive impact with room for improvement in communication, consistency, and responsiveness to external factors

TRADE RELATION BETWEEN G7 COUNTRIES WITH SOMALIA: TREND, CHALLENGES AND GOVERNMENT INITIATIVES.

Sukanta Sarkar — 2025-08-08

The study discussed the trade relations of G7 countries with Somalia, and also the prospects and challenges of trade between Somalia and G7 countries. It has found that Somalia is a growing country in the Horn of Africa, although it has many internal challenges. Somalia has a trade deficit with G7 countries. Japan. France, and Italy are the major importer of Somali goods and services in the G7 group. Their major importing goods from Somalia are scrap metal, charcoal, fish, skins, bananas, and livestock. The United States, Italy, and France are the major exporting countries of the G7 group to Somalia. Accordingly, the Trade Intensity Index, Somalia has strong trade relations with Japan, France, and Germany, while it has weak trade relations with the United States, Italy and the United Kingdom. The Trade Complementarity Index of G7 countries to Somalia is higher. So, the export profile of G7 countries are more in line with the import profile from Somalia. Export Diversification Index shows that Somalia exports diverse products to G7 countries. Somalia has the potential to increase livestock exports by finding new markets. Somalia has abundant land for agriculture and food production. However, the nation faces many challenges, including climate change, conflict, and economic instability. Ongoing conflict has severely impacted agricultural production and livestock exports. Therefore, the Government of Somalia should implement import-substitute policies for reducing dependence on import goods, and allow the private sector for production of goods for minimizing trade deficits.