IDEAS home Printed from https://ideas.repec.org/a/wej/wldecn/335.html
   My bibliography  Save this article

Trends and Challenges in Islamic Finance

Author

Listed:
  • Heiko Hesse
  • Andreas (Andy) Jobst
  • Juan Solé

Abstract

The paper first discusses the current trends in Islamic finance, which has become mainstream with currently more than US$800 billion of assets worldwide and a buoyant market for sukuk bonds. However, this exorbitant growth raises many challenges, particularly in the areas of banking, capital markets and regulation. Thus, the paper then considers these challenges, notably the economic and legal bottlenecks of sukuk, banking-specific issues, such as liquidity risk management and business models, as well as disharmonized financial regulation. Despite the challenges, the paper concludes that the Islamic finance industry has a bright future.

Suggested Citation

  • Heiko Hesse & Andreas (Andy) Jobst & Juan Solé, 2008. "Trends and Challenges in Islamic Finance," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 9(2), pages 175-193, April.
    • Handle: RePEc:wej:wldecn:335
    as

    Download full text from publisher

    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=335
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sherif Abdullahi & Amir Shaharuddin, 2016. "Potential for Islamic Banking in Macedonia: An Empirical Evidence," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 1039-1047.
    2. repec:ipg:wpaper:2013-035 is not listed on IDEAS
    3. Ghlamallah, Ezzedine & Alexakis, Christos & Dowling, Michael & Piepenbrink, Anke, 2021. "The topics of Islamic economics and finance research," International Review of Economics & Finance, Elsevier, vol. 75(C), pages 145-160.
    4. Mr. Enrique A Gelbard & Mr. Mumtaz Hussain & Mr. Rodolfo Maino & Mr. Yibin Mu & Mr. Etienne B Yehoue, 2014. "Islamic Finance in Sub-Saharan Africa: Status and Prospects," IMF Working Papers 2014/149, International Monetary Fund.
    5. Shah Shirazi, Nasim & Elzahi, Abdelrahman & Khattab, Ishraga, 2014. "Islamic Microfinance for Sustainable Development," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 22, pages 137-141.
    6. Mumtaz Hussain & Asghar Shahmoradi & Rima Turk, 2016. "An Overview of Islamic Finance," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-28, February.
    7. Md. Mahmudul Haque & Mohammad Ashraful Ferdous Chowdhury & Abdul Aziz Buriev & Obiyathulla Ismath Bacha & Mansur Masih, 2018. "Who drives whom ‐ sukuk or bond? A new evidence from granger causality and wavelet approach," Review of Financial Economics, John Wiley & Sons, vol. 36(2), pages 117-132, April.
    8. Alim, Wajid & Ali, Amjad & Farid, Maryiam, 2021. "The Impact of Islamic Portfolio on Risk and Return," MPRA Paper 111211, University Library of Munich, Germany.
    9. Sat Paul Parashar, 2014. "A case study of the Liquidity Management Centre in Bahrain," Chapters, in: Mervyn K. Lewis & Mohamed Ariff & Shamsher Mohamad (ed.), Risk and Regulation of Islamic Banking, chapter 8, pages 139-152, Edward Elgar Publishing.
    10. Sherif Abdullahi & Amir Shaharuddin, 2016. "Potential for Islamic Banking in Macedonia: An Empirical Evidence," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 1039-1047.
    11. Jaouad Elouali & Lahsen Oubdi, 2020. "Liquidity Risk Determinants of Islamic Banks," Post-Print hal-04368556, HAL.
    12. Ajmi, Ahdi Noomen & Hammoudeh, Shawkat & Nguyen, Duc Khuong & Sarafrazi, Soodabeh, 2014. "How strong are the causal relationships between Islamic stock markets and conventional financial systems? Evidence from linear and nonlinear tests," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 28(C), pages 213-227.
    13. Puteri Nur Balqis Megat Mazlan & Nafez Fayez Hersh & Tajul Ariffin Masron & Nurhafiza Abdul Kader Malim, 2023. "Islamic finance and governance indicators: empirical evidence from Islamic finance-permitting countries," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 344-358, December.
    14. Saeed, Momna & Izzeldin, Marwan & Hassan, M. Kabir & Pappas, Vasileios, 2020. "The inter-temporal relationship between risk, capital and efficiency: The case of Islamic and conventional banks," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).
    15. Muteba Mwamba, John W. & Hammoudeh, Shawkat & Gupta, Rangan, 2017. "Financial tail risks in conventional and Islamic stock markets: A comparative analysis," Pacific-Basin Finance Journal, Elsevier, vol. 42(C), pages 60-82.
    16. Dayah Abdi Kulmie & Mohamed Abdirahman Abdulle & Mukhtar Sheikh Hussein & Hussein Abdi Mohamud, 2023. "Effects of Islamic Modes of Financing on Profitability of Banking Institutions," International Journal of Business and Management, Canadian Center of Science and Education, vol. 18(5), pages 237-237, October.
    17. OPREA Raluca Ioana, 2016. "The Place Of Shari'Ah In The Global Financial Architecture Islamic Finance In The Uae," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(2), pages 56-68, September.
    18. Mr. Juan Sole & Andreas Jobst, 2012. "Operative Principles of Islamic Derivatives: Towards a Coherent Theory," IMF Working Papers 2012/063, International Monetary Fund.
    19. repec:ipg:wpaper:35 is not listed on IDEAS
    20. Aledjandro Lopez Mejia & Suliman Aljabrin & Rachid Awad & Mr. Mohamed Norat & Mr. In W Song, 2014. "Regulation and Supervision of Islamic Banks," IMF Working Papers 2014/219, International Monetary Fund.
    21. Martin Čihák & Heiko Hesse, 2010. "Islamic Banks and Financial Stability: An Empirical Analysis," Journal of Financial Services Research, Springer;Western Finance Association, vol. 38(2), pages 95-113, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wej:wldecn:335. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ed Jones (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.