How COVID-19 Will Reshape Islamic Finance Markets
By Stuart Brown
Since the inception of the Islamic finance industry in the 1970s, there has been a steady growth in demand for sharia-compliant products and services and the industry’s total assets reached US$2.5 trillion globally in 2019.
Given the headwinds posed by the COVID-19 pandemic, the volatility in oil prices and the uncertain macroeconomic environment, the Islamic finance industry faces an unprecedented challenge to its development.
Nevertheless, COVID -19 is also shifting the dynamics in the industry and the outbreak may create new opportunities for Islamic finance markets by accelerating trends such as socially responsible investing, sustainability, and digitalization.
Photo courtesy of The Ujulala.