Abstract

The purpose of this paper is to first illustrate the development of Islāmic finance in Mauritius, an island with a minority Muslim population which has made the necessary changes in its regulatory framework for Islāmic finance and banking since 2007, and has so far seen only sporadic development in the market. The paper also discusses the opportunities and challenges for implementing Islāmic financial services in the island. While the offshore market is an ideal platform for Islāmic Financial Institutions (IFIs) to set up global Sharī‘ah based funds and the issuance of “Sukuk”, the domestic market has not shown positive responses to the existing products. For any Islāmic financial institution to succeed in Mauritius, it is required to have an inclusive business strategy and value proposition which includes key offerings under the consumer banking, commercial banking, corporate investment banking and treasury. In general, why Islāmic financial services are not taking off at full speed remains the unsolved question for many in Mauritius. Further empirical researches are required to understand and deepen the awareness in the market about the emerging financial system.

Keywords

Mauritius; Islāmic Finance & Banking; Minority-Muslims Countries; Business Strategy.