Shariah Compliant Lending:
In a worldwide economy where this enthusiasm for Shariah lending is quickly growing, it is justified regardless of the exertion considering the merits and the demerits of the monetary worldview of Islamic financial matters. The leap forward of Islamic account in the late twentieth century was no occurrence. Recent studies have evaluated an aggregate total asset of about $3 trillion coursing through the Islamic finance system. With growing rates of Shariah compliant lending from 13 to 22%, making it the quickest developing segment in the finance industry, its significance does not appear to be any less major in the foreseeable future.
Moral Nature of Shariah Lending:
Islamic money has yet been praised for its moral nature, which adds to social equity as well as stipends the saving money industry a superior picture. Most importantly, Islamic fund is accepted to be a lower risk financing component than the current ordinary.
Then again, the substance of Islamic fund has been condemned for being somewhat wasteful and discriminatory, having no genuine included worth as far as monetary advancement or purchaser welfare.
Why Shariah Lending is Growing in Muslim and Non-Muslim Countries?
Here are the top 5 reasons why Sharia compliant lending is on the rise in non-Muslim countries:
Growth:
The popularity and growth of Sharia compliant lending is forecasted to grow at an unprecedented rate. Unusually high rates of growth have made it more popular and people are now looking at is authenticity and viability very closely.
Muslim Demands:
The Muslim population in non-Muslim countries is ever growing. Hence, the need for Islamic finance in those areas. The Muslim community wants to operate under the Shariah and because of that must engage in Shariah compliant lending rather than conventional lending.
Globalization:
The globalization of international markets demands that every method of finance be incorporated into the running of the market. The world is now one big marketplace and the Muslim population is one major buyer and seller. Thus to satisfy their needs and wants, non-Muslim countries are increasing their focus on Islamic finance.
Co-Exist:
Many non-Muslim countries are of the opinion that both Islamic finance and conventional banking can co-exist. They don’t see Islamic finance as a competition rather they see it as an opportunity to increase their customer base of which Muslims are a significant part.
The Gulf Influence:
Another major reason why Islamic lending is one the rise is the simple matter of the fact that the Gulf States have retained their dominance over majority of the world’s oil. The Gulf States sternly believe in trading according to the sharia law and want Islamic finance to be incorporated in their every dealing.
Future of Shariah Compliant Lending in Non-Muslim Countries:
All in all, Islamic lending has seen a significant rise in its use and popularity not just in Islamic countries but also non-Muslim countries. This has been proven by London’s positive stance and increased use regarding Islamic finance. Historically, the Islamic banking system must be based on gold standard, however, it’s practical implementation will take time. Many non-Muslims are still unaware of its existence and terms of use, but that number is slowly decreasing. All of these reasons are why Islamic finance is gaining in influence and is predicted to do so at even a higher rate in the foreseeable future. With the growth of industry, demand for Islamic finance qualification is also growing. Considering this demand, AIMS designed mba Islamic banking and finance, which allows you to study Islamic banking courses, 100% online from any part of the world.