The State of Global Islamic Finance: A 47-Country Survey of Developments and Challenges
Abstract
The main objective of this paper is to investigate the development of the Islamic banking and finance (IBF) industry worldwide. In addition, it will show the obstacles that prevent the IBF industry from developing. This paper is a conceptual paper in nature; it discusses the growth of the IBF industry across the world and the factors hindering its development. The findings show that the Islamic banking and finance industry has been making significant breakthroughs at the global level, with total assets exceeding $3.69 trillion in 2024. However, there are issues that need to be addressed by the industry to assure the continuity of its growth. These issues include the need for greater standardization of laws and regulations, a persistent dearth of qualified human resources, inconsistency of fatwa, undeveloped Islamic money and capital markets, and a need for more research to develop new products, particularly in the areas of fintech and sustainable finance. This paper provides a comprehensive and updated investigation into the status of the IBF industry in 47 countries, building upon previous studies that were often limited to specific regions or used smaller samples.
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