Risks And Uncertainties For Agriculture Projects In Islamic Banking Institutions

Background: Risk and uncertainty are inherent in any agro projects. Farmers, agro entrepreneurs, international agencies, and banking institutions are increasingly seeking effective and sustainable strategies and approaches to mitigate, transfer, or cope with these inherent risks. Objectives: To examine the type of risks and uncertainty associated with agro projects for financing in Islamic Banking Institutions. Results: There are many risks that associated with agriculture initiatives and by understanding the risks, agro-entrepreneurs able to minimize it and avoid any unexpected uncertainties. Conclusion: The general finding of this article shows that agro entrepreneurs faced various risks, which shows that there is a need to have a proper Shariah-compliant financing mechanism for agriculture projects through Islamic banking institutions.