Islamic Finance News Digest – July 2020

Islamic finance sector needs to unlock its long-term potential

“While the pandemic has certainly highlighted the need to standardise the sector and the advantages that digitalisation can bring, it has also demonstrated that the industry has plentiful opportunities for growth. Collaboration amongst stakeholders will be key in ensuring that the industry is able to unlock its full potential in the long term, even during challenging times”.


FinTech can help the Islamic finance sector to innovate and grow

“Fintech provides a great opportunity for the sector to streamline services and attract new segments, with the key being digital-savvy millennials. Younger customers are expected to play a crucial role in the growth of Islamic finance and expand its customer base, with the younger segment expecting to contribute to as much as 75 per cent of total bank revenue by 2030.”


Murabahah real estate financing expected to grow in Saudi Arabia

“Murabaha is one of the most important tools in Islamic Finance that allows a beneficiary to transfer the title deed of the asset in their name – making it the preferred financing structure, especially in case of home mortgages”


Dubai readying code for global legislative framework for Islamic finance by second quarter of 2021

The Dubai Islamic Economy Development Centre (DIEDC) is readying the code for a global legislative framework for Islamic finance by Q2 2021. It is proposed to roll it out through an international treaty that Organisation of Islamic Cooperation (OIC) and non-OIC countries will sign in order to adopt the code.


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