Islamic finance has an important role to play in supporting the recovery from Covid
Andrew Hauser – Executive Director to the Bank of England has some thoughts on this which are shared by following this link to the Bank of England website
Andrew is of the opinion that Islamic finance has an important role to play in supporting the recovery from Covid and that the core principles of Islamic finance are extremely well suited to responding to some of the biggest challenges we’ll all face in rebuilding our economy once Covid has passed. Prioritising equity-like risk-sharing over debt, factoring ethical and environmental considerations into investment decisions, and embracing innovative financial solutions beyond traditional banking is key to recovery.
But, perhaps before you move on, let’s look behind this statement and explore some of the reasons why this may be the case.
Over the last 17 years, the Islamic finance marketplace has seen widespread expansion and unprecedented growth. To put this into numbers it has grown from $200bn in 2003 to an estimated prediction in excess of $4 trillion in terms of assets by 2030.
The expansion referred to would also show that Islamic Finance is now offered in over 60 countries and via 300 Islamic financial institutions. To put this into global terms, approximately 0.5% of financial assets are estimated to be under Sharia-compliant management. This progression and market interest has seen many non-Muslim countries throughout Europe and Asia now offering Islamic Finance solutions.
If you consider the ever-increasing diversification of cultures, growth is expected to steadily continue for some time yet within Islamic Finance market place and so perhaps this is something to explore. CrowdToLive’s shared home ownership packages are safe of Sharia law since no interest is charged, the portion of the property that is not owned by the resident is rented.
But don’t just take our word for it, take a look at the article from Andrew Hauser of the Bank of England who provides his opinion on this topic. Andrew is an Oxford graduate and has many years of experience in the upper echelons of the Finance Sector in the United Kingdom.
Continue reading on Bank of England website.