COVID-19 Pandemic and Islamic Social Finance Products in Iran

Abstract

Islamic social finance assists in achieving social good and economic justice in societies by closing the gap between rich and poor in a Shariah compliant framework. COVID-19 pandemic has created the opportunity to experience the untapped potential of Islamic social finance in many of the countries. This chapter sheds light on the use of Islamic social finance in Iran in the midst of the pandemic with the objective of sharing some Shariah compliant financial solutions for reducing undesirable consequences of the COVID-19. Iran is a country that has a unique Islamic financial system. Currently, it is the country where constitutionally and statutorily practices only shariah-compliant financing activities. This chapter reveals that tradability of justice shares, introduction of Shariah-compliant crowdfunding platforms, provision of Islamic microfinance vehicles in the form of Al-Qard Al-Hassan loans, payment facilities to factories damaged by COVID-19, low-profit rate Murabaha facilities for housing sector are some Shariah-compliant social finance products which were provided in Iran in the midst of the pandemic to provide financial solutions to fulfil the need of the society in a convenient and effective manner.

Citation

Pireh, M. (2022), "COVID-19 Pandemic and Islamic Social Finance Products in Iran", Hassan, M.K., Muneeza, A. and Sarea, A.M. (Ed.) Towards a Post-Covid Global Financial System, Emerald Publishing Limited, Leeds, pp. 243-259. https://doi.org/10.1108/978-1-80071-625-420210013