Modern Trends Of The Islamic Finance Industry Analytical Study For The Period (2012-2021)

Abstract

Abstract: The research focused on studying the nature of the organic relationship between the Islamic finance industry and the legal frameworks governing it and its current paths and future directions. The research proceeded from the hypothesis that the Islamic legal rulings, and the restrictions they impose on financial innovations, constitute safety standards to avoid regulatory shortcomings for the finance industry in general, and that the financial stability that can result from their application is sufficient to attract more investments to this industry.

The research adopted the analytical method in testing the hypothesis by using the inductive analysis method, by analyzing the historical data of the Islamic finance industry around the world for the aforementioned period, and extrapolating its current reality and the general trends of its development. One of the challenges that the researcher faced was the lack of historical data that reflects the behavior of Islamic financial instruments, taking into account that the age of the Islamic financial industry is less than five decades, and that the focus on it came as a result of the success of the Islamic financial system in proving its worth by overcoming the negative effects of the 2008 crisis.

Among the most important conclusions reached by the researcher is the success of the Islamic finance industry during the period of the study by achieving great developments, especially on the quantitative level, as the financial stability achieved by Islamic finance institutions during the last three decades helped attract more global investments. The most prominent recommendation of the study is the need to strengthen the bonds of the complementary relationship between the financial institutions and the religious institution, and seek to coordinate work among them to develop a strategy for the development of the financing industry, and to provide it with financial products and services that are compatible with Islamic Sharia.