This study seeks to determine the effect of Business Development Services (BDS) on the\ncomfort level of the Islamic Microfinance System and SMEs owners in Yemen. Based on the\nimportance of SMEs in Yemen which consists of 99.6% of all businesses in Yemen and their\nimportant role on the overall economic development by reducing poverty and creating new\njob. The paper made it easy to see what effectiveness the Islamic microfinance system is\nbringing in SMEs sector in the country. 532 questionnaires were distributed amongst the\nSMEs owners in Yemen to collect data, 346 were returned and further 320 were selected for\nData analysis. It was found in the study that there was a remarkable effect of BDS on the\nsatisfaction and the perceived benefits that SMEs owners got through dealing with Islamic\nmicrofinance system. The additional findings were to confirm the role of perceived benefits\nmediating the relationship between satisfaction and BDS but the moderating effects of perceived benefits on the two were not confirmed.
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