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The Impact of the (COVID-19) Pandemic on Islamic Financial Institutions أثر جائحة (كوفيد-19) على المؤسسات المالية الإسلامية

Author

Listed:
  • Hussein Samhan

    (Professor of Islamic Banking and Islamic Finance Zarqa University; the University of Jordan and the International Islamic Sciences University)

Abstract

In this intervention, I discussed a research entitled “Economic and Social Implications of the Emerging Coronavirus (Covid-19)" by researcher Ahmed Mahdi Belouafi as part of the contribution to the discussion forum of King Abdulaziz University’s Journal: Islamic Economics. During the discussion, I focused on the impact of this pandemic on Islamic financial institutions, which were represented by the negative impact on lease contracts and forward sales contracts mainly, as it led to the inability of clients to pay the installments and the issuance of instructions from central banks ordering financial Islamic institutions and others to postpone installments for certain periods and make arrangements suitable for customers' conditions to overcome the ordeal. This disadvantages lead to negatively effects on financial Islamic institutions in the long run, especially since the pandemic is still ongoing, so at the end of the paper a number of proposals were presented to Islamic institutions to be able to deal with these negative effects of the pandemic, such as allowing Islamic banks to use the mandatory cash reserve and compensating financial Islamic institutions by the government within the support packages and others. هدفت هذه المداخلة إلى التعليق والمناقشة لبحث " التداعيات الاقتصادية والاجتماعية لفايروس كورونا المستجد (كوفيد-19) للباحث أحمد مهدي بلوافي في إطار المساهمة في منتدى النقاش لمجلة جامعة الملك عبد العزيز: الاقتصاد الإسلامي. وتم التركيز فيه على مناقشة أثر هذه الجائحة على المؤسسات المالية الإسلامية التي تمثلت بالتأثير السلبي على عقود الايجار وعقود البيوع الآجلة بشكل أساسي حيث أدت إلى عدم قدرة المستأجرين والمدينين على تسديد الاقساط المستحقة عليهم وصدور تعليمات من البنوك المركزية موجهة للمصارف الإسلامية وغيرها بتأجيل الاقساط لمدد معينة واجراء ترتيبات تناسب أوضاع العملاء لتجاوز المحنة الامر الذي يؤثر سلبًا على المصارف الإسلامية في المدى الطويل خاصة وأن الجائحة ما تزال مستمرة، قدمت الورقة عددًا من الاقتراحات للمصارف الإسلامية لتتمكن من التعامل مع هذه الاثار السلبية للجائحة مثل السماح لها باستخدام الاحتياطي النقدي الإلزامي وتعويض الحكومة لهذه المصارف ضمن حزم الدعم وغيرها.

Suggested Citation

  • Hussein Samhan, 2020. "The Impact of the (COVID-19) Pandemic on Islamic Financial Institutions أثر جائحة (كوفيد-19) على المؤسسات المالية الإسلامية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(3), pages 75-86, October.
    • Handle: RePEc:abd:kauiea:v:33:y:2020:i:3:no:3:p:75-86
    DOI: 10.4197/Islec.33-3.3
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