Does an Islamic finance industry need a unification of standards? A qualitative discussion

The two main problems faced by the Islamic finance industry in Muslim countries are that the markets are fragmented, which gives rise to different governing standards, and that the markets’ growth is very much region-centric. In this article, using a qualitative approach, we identify the obstacles f...

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Main Authors: Mohamad, Azhar, Kashi, Aghilasse
Format: Article
Language:English
English
Published: Arab Law Quarterly 2017
Subjects:
Online Access:http://irep.iium.edu.my/59558/
http://irep.iium.edu.my/59558/7/Does%20an%20Islamic%20Finance%20Industry%20Need%20a%20Unification%20of%20Standards%20A%20Qualitative%20Discussion.pdf
http://irep.iium.edu.my/59558/13/59558_Does%20an%20Islamic%20Finance%20Industry.pdf
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author Mohamad, Azhar
Kashi, Aghilasse
author_facet Mohamad, Azhar
Kashi, Aghilasse
author_sort Mohamad, Azhar
building IIUM Repository
collection Online Access
description The two main problems faced by the Islamic finance industry in Muslim countries are that the markets are fragmented, which gives rise to different governing standards, and that the markets’ growth is very much region-centric. In this article, using a qualitative approach, we identify the obstacles facing the industry in its quest to unify the differences and implement a uniform standard. We argue that if Malaysia’s Islamic finance industry is to become a leader in the global Islamic finance industry, a key policy must be to reduce the gaps in Islamic finance practices between countries by adopting unified standards. Unifying standards could enable Muslim countries to accrue greater benefits from the globalisation of the Islamic financial sector and attract more foreign direct investment and portfolio equity flows. It could also enable greater integration of Islamic financial markets, increase diversification opportunities and expand the set of available financial instruments.
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spelling iium-595582021-04-06T08:48:35Z http://irep.iium.edu.my/59558/ Does an Islamic finance industry need a unification of standards? A qualitative discussion Mohamad, Azhar Kashi, Aghilasse HG Finance HG3368 Islamic Banking and Finance The two main problems faced by the Islamic finance industry in Muslim countries are that the markets are fragmented, which gives rise to different governing standards, and that the markets’ growth is very much region-centric. In this article, using a qualitative approach, we identify the obstacles facing the industry in its quest to unify the differences and implement a uniform standard. We argue that if Malaysia’s Islamic finance industry is to become a leader in the global Islamic finance industry, a key policy must be to reduce the gaps in Islamic finance practices between countries by adopting unified standards. Unifying standards could enable Muslim countries to accrue greater benefits from the globalisation of the Islamic financial sector and attract more foreign direct investment and portfolio equity flows. It could also enable greater integration of Islamic financial markets, increase diversification opportunities and expand the set of available financial instruments. Arab Law Quarterly 2017-11 Article PeerReviewed application/pdf en http://irep.iium.edu.my/59558/7/Does%20an%20Islamic%20Finance%20Industry%20Need%20a%20Unification%20of%20Standards%20A%20Qualitative%20Discussion.pdf application/pdf en http://irep.iium.edu.my/59558/13/59558_Does%20an%20Islamic%20Finance%20Industry.pdf Mohamad, Azhar and Kashi, Aghilasse (2017) Does an Islamic finance industry need a unification of standards? A qualitative discussion. Arab Law Quarterly, 31 (4). pp. 336-362. ISSN 0268-0556 E-ISSN 1573-0255 http://booksandjournals.brillonline.com/content/journals/10.1163/15730255-12313031 10.1163/15730255-12313031
spellingShingle HG Finance
HG3368 Islamic Banking and Finance
Mohamad, Azhar
Kashi, Aghilasse
Does an Islamic finance industry need a unification of standards? A qualitative discussion
title Does an Islamic finance industry need a unification of standards? A qualitative discussion
title_full Does an Islamic finance industry need a unification of standards? A qualitative discussion
title_fullStr Does an Islamic finance industry need a unification of standards? A qualitative discussion
title_full_unstemmed Does an Islamic finance industry need a unification of standards? A qualitative discussion
title_short Does an Islamic finance industry need a unification of standards? A qualitative discussion
title_sort does an islamic finance industry need a unification of standards? a qualitative discussion
topic HG Finance
HG3368 Islamic Banking and Finance
url http://irep.iium.edu.my/59558/
http://irep.iium.edu.my/59558/
http://irep.iium.edu.my/59558/
http://irep.iium.edu.my/59558/7/Does%20an%20Islamic%20Finance%20Industry%20Need%20a%20Unification%20of%20Standards%20A%20Qualitative%20Discussion.pdf
http://irep.iium.edu.my/59558/13/59558_Does%20an%20Islamic%20Finance%20Industry.pdf