Published 23 February 2022
This paper examines the role that Islamic finance can play in addressing the challenges created by the Covid-19 pandemic and in getting Organization of Islamic Cooperation (OIC) countries back on track to meet the SDGs. It draws on the heightened interest and the greater attention that Islamic finance has received since the global financial crisis (GFC). The Islamic Financial Industry has evolved greatly within the past decade and has witnessed rapid growth, driven by enhanced Shari’a governance and more innovation in the digital landscape especially with the adoption of fintech. Several features underpin the expansion and performance of Islamic finance. Multilateral development institutions, including the World Bank and the Islamic Development Bank (IsDB), have longstanding programs to support the development of the industry and have used Islamic instruments to tap capital markets. Addressing key regulatory and governance issues will be essential for Islamic finance to achieve its full potential. This paper explains how Islamic finance can create opportunities to increase the global reach of Islamic financial services and enhance financial inclusion. The paper draws upon the role of digitalization and sustainability to help OIC countries achieve the UN’s 2030 Sustainability Agenda and put the SDGs back on track.
This paper will be part of the TDM Special Issue on "Islamic Finance and Dispute Resolution". More information here www.transnational-dispute-management.com/news.asp?key=1832