ISLAMIC FINANCE
Meeting the Potential Mohammed Dawood Head of Islamic Finance, HSBC, MENAT reflects a positive overall outlook for Islamic Finance in the region and beyond, encouraged by the application of technology, the growth of ESG considerations and an expected increase in Sukuk activity
Mohammed Dawood, Head of Islamic Finance, HSBC Middle East, North Africa & Turkey
W
illdigitaltransformation help to grow the market s h a re of I s l a m i c Finance in the region and the wider world? Digital transformation is revolutionizing the way that the banking sector conducts operations, making transactions and payments easier, faster and even more secure. But the Islamic finance sector still
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Banking and Finance news in the MEA market
has much to do to fulfil the potential of its own digital transformation journey. Currently, the execution of daily Islamic finance transactions conducted by Islamic banks is reliant upon manual processes and is characterized by its use of a large amount of documentation. Applying new technologies, such as blockchain, to Islamic finance would speed up processing, reduce human error and provide a strong foundation for further growth of in market share. Over the past few years, we have seen the emergence of Islamic fintechs and roboadvisors in the MENA region and beyond. These innovations are crucial to Islamic finance maintaining and building market share, particularly in the GCC region and South-East Asia. In markets where Islamic finance is underrepresented, such as Western Europe or the United States, new technology will provide access to consumers who previously had no access to Islamic finance products and services.
Are Shariah-compliant social principles appealing to investors whose decisions are following ESG principles? There is significant alignment between ESG and Shariah-compliance principles,
