An article published on April 4, 2018 on Zawya analyzes the future of Islamic finance: “Muslim-majority countries face the challenge of devising strong yet flexible regulatory environments for Shariah-compliant financial instruments if Islamic finance is to compete with conventional systems and prosper.”
According to the author, one potential way forward is an “alignment with responsible finance.
Possibly the biggest draw for Islamic finance, and one that is attracting interest even from the non-Muslim world, is its alignment with the values of responsible finance which have become increasingly popular in the developed world after the global financial crisis. Islamic finance through its adherence to strict ethical guidelines offers more than just guidelines for the Islamic world but also a universal value proposition that can light the way forward for non-Islamic finance, working in tandem with wider initiatives such as the United Nations’ Sustainable Development Goals and integrating Environmental, Social and Governance (ESG) values to further the aims of a more equitable, inclusive and sustainable financial world. Businesses with superior ESG performance can gain wider public acceptance and a boosted reputation, can satisfy stakeholder demands, and are more compliant with national and international guidelines and laws.”
You may read the article on the Zawya internet site.