Value proposition of Islamic finance

In a world driven by economic dynamism and financial innovation, Islamic finance stands out as a unique and increasingly influential system that focus on real trade and economic activity while barring interest-based dealing, speculation, artificial financial instruments and toxic assets like conventional derivatives. Islamic finance rooted in the Islamic commercial law and supported by a strong ethical foundation emphasises fair conduct, risk sharing and asset-backed transactions. According to the Islamic Finance Development Report 2023, the global Islamic finance industry continued the growth momentum with assets crossing $4.5 trillion and the number of Islamic financial institutions increasing to 1,871. The annual growth rate is hovering around 11%. With this impressive performance, Islamic finance is no longer a niche market but a significant player in the global financial landscape.