The Future of Islamic Finance

Abstract

In this chapter, the integration of diverse discussions from preceding chapters converges into a comprehensive exploration of four pivotal challenges facing Islamic finance both presently and in the future. The chapter systematically addresses these challenges, commencing with a focused analysis on augmenting the role of Islamic finance in fostering financial inclusion. It scrutinizes innovative strategies to broaden access to financial services. Moving forward, the narrative navigates the intricate intersection of Islamic finance and sustainability, unraveling the potential synergy between these two domains and their collective contribution to Sustainable Development Goals (SDGs). The exploration extends to the realm of digitalization, probing how modern technologies such as artificial intelligence and blockchain can serve as catalysts for the progression of Islamic finance. Finally, the chapter delves into the imperative of harmonizing the Islamic financial industry (IFI), tackling challenges and proposing solutions to enhance uniformity and coherence in practices. These nuanced discussions not only address contemporary challenges but also underscore their critical role in achieving the SDGs and aligning with the targets of the Paris Agreement by 2030, providing valuable insights for scholars, practitioners, and policymakers in the field of Islamic finance.

Citation

Hidayat, S.E., Musari, K., Masrohatin, S. and Smolo, E. (2024), "The Future of Islamic Finance", Smolo, E. and Raheem, M.M. (Ed.) The Future of Islamic Finance, Emerald Publishing Limited, Leeds, pp. 221-242. https://doi.org/10.1108/978-1-83549-906-120241014