Awareness and Confidence Key Challenges for Islamic Finance Growth

The global Islamic finance industry's growth potential remains but limited public awareness and lack of confidence in the sharia-compliance of Islamic financial products are part of the key challenges the industry faces, particularly in markets where the industry has a niche presence, Fitch Ratings says. Our ratings do not reflect whether an issuer or sukuk is sharia-compliant. We assess non-compliance with sharia principles only if it has credit implications.

Initiatives that can help address these challenges include the development of regulations that are supportive of Islamic financial services; on-going training and awareness campaigns towards various stakeholders, including customers, regulators, financial institutions and employees; and the increased usage of fintech solutions, targeting the young Muslim populations in the Organisation of Islamic Cooperation (OIC) countries.

Read more here