News Digest in Islamic Finance June 2020

Dubai outlines plans to unify legal framework for Islamic finance

Once complete, the project would bring “much anticipated standardisation to the Islamic finance sector, reduce discrepancies in practices across the globe, and eventually translate into positive outcomes for the Islamic economy as a whole”, Dubai Media Office said.

Covid an opportunity to transform Islamic finance, says S&P

“The temporary slowdown in the growth of Islamic finance as a result of the Covid-19 pandemic could help unlock the long-term potential of the industry.

After a stellar performance in 2019, helped by a dynamic sukuk market, there has been “a significant slowdown of core Islamic finance economics in 2020,” stated S&P Global Ratings head of Islamic finance Mohamed Damak. While there is expected to be a “mild recovery” in 2021, there is also an opportunity to undergo reforms that could accelerate the industry’s long-term prospects.”

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