What is the future of Islamic finance?
Despite the challenging conditions, rating agency Standard & Poor’s has projected that the Islamic finance industry will still show low to mid-single-digit growth in 2020-2021 after the 11.4% growth in 2019 led by strong performance in the Sukuk market.
What are the sources of Islamic finance?
Islamic finance is defined as a financial service principally implemented to comply with the main tenets of Sharia (or Islamic law). In turn, the main sources of Sharia are the Holy Quran, Hadith, Sunna, Ijma, Qiyas and Ijtihad.
How much is Islamic finance industry worth?
The global Islamic banking sector is the main contributor to this market and is worth at USD 1.99 trillion growing at 14percent.
How do Islamic bank make profit?
Islamic banks make a profit through equity participation, which requires a borrower to give the bank a share in their profits rather than paying interest. Some conventional banks have windows or sections that provide designated Islamic banking services to their customers.
What are Islamic finance products based on?
These products—and Islamic finance in general—are based on Islamic commercial contracts ( aqad i.e. a commitment between two parties) and contract law, with products generally named after contracts (e.g. mudaraba) though they may be combinations of more than one type of contract.
What are the different investment vehicles in Islamic finance?
The two major investment vehicles in Islamic finance are: Sharia allows investment in company shares. However, the companies must not be involved in the activities prohibited by Islamic laws, such as lending at interest, gambling, production of alcohol or pork. Islamic finance also allows private equity investments.
What are the new entrants to the Islamic finance market?
This week in Islamic finance, we see new entrants in the market, including Shariah compliant peer-to-peer platform Nester in the UK, digital assets platform QuantDART in Kazakhstan and a new non-interest bank under Nigeria’s Sterling…
How will covid-19 affect the Islamic finance industry in 2021?
The significant slowdown of core Islamic finance economies in 2020, because of measures implemented by various governments to contain the COVID-19 pandemic, and the expected mild recovery in 2021, explain our expectations.