THE GLOBAL PERSPECTIVE OF ISLAMIC FINANCE AND THE POTENTIAL FOR CHINA TO TAP INTO THE ISLAMIC FINANCE MARKET
Dr. Fares Djafri, Prof. Dr. Mohamad Akram Laldin, Dr. Abdelkader Laallam*
Islamic finance is considered one of the fastest-growing segments of the global financial industry. Over the last four decades, Islamic finance has expanded globally to western and other non-Muslim countries. This paper aims to explore the potential for China to tap into the Islamic finance market and the challenges that may face the implementation of Islamic finance there. The paper adopts a content analysis approach, stressing various aspects of economic sustainability in China and the potential benefits that China may gain from adopting Islamic finance. The study reveals that China has a huge opportunity to capitalize on Islamic finance for economic development, particularly in implementing China’s Belt and Road Initiative (BRI). The paper also highlights the critical success factors for introducing Islamic finance in China and political will. Sincere support from the government is needed for the effective introduction of Islamic finance in the country. This support should be subsequently followed by developing the legal framework, an amendment of the laws, broad publicity to raise public awareness, and effective collaboration with international organizations.
Islamic Finance, Development, Challenges, BRI, China