Top 5 reasons Why Islamic Lending is Growing in Non-Muslim Countries
In a worldwide economy where this enthusiasm for Islamic lending or sharia lending is quickly growing, it is justified regardless of the exertion considering the merits and the demerits of the monetary worldview of Islamic financial matters. The leap forward of Islamic account in the late twentieth century was no occurrence.
Recent studies have evaluated an aggregate total asset of about $2 trillion coursing through the Islamic finance system. With growing rates from 13 to 22%, making it the quickest developing segment in the finance industry, its significance does not appear to be any less major in the foreseeable future.
Moral Nature of Sharia Lending:
Islamic money has yet been praised for its moral nature, which adds to social equity as well as stipends the saving money industry a superior picture. Most importantly, Islamic fund is accepted to be a lower risk financing component than the current ordinary.
Then again, the substance of Islamic fund has been condemned for being somewhat wasteful and discriminatory, having no genuine included worth as far as monetary advancement or purchaser welfare.
Reasons of Its Rise:
Here are the top 5 reasons why Islamic lending is on the rise in non-Muslim countries.
The popularity and growth of Islamic finance and lending is forecasted to grow at an unprecedented rate. Unusually high rates of growth have made it more popular and people are now looking at is authenticity and viability very closely.
The Muslim population in non-Muslim countries is ever growing. Hence, the need for Islamic finance in those areas. The Muslim community wants to operate under the sharia and law and because of that must engage in Islamic lending rather than conventional lending.
The globalization of international markets demands that every method of finance be incorporated into the running of the market. The world is now one big marketplace and the Muslim population is one major buyer and seller. Thus to satisfy their needs and wants, non-Muslim countries are increasing their focus on Islamic finance.
Many non-Muslim countries are of the opinion that both Islamic finance and conventional banking can co-exist. They don’t see Islamic finance as a competition rather they see it as an opportunity to increase their customer base of which Muslims are a significant part.
The Gulf Influence:
Another major reason why Islamic lending is one the rise is the simple matter of the fact that the Gulf States have retained their dominance over majority of the world’s oil. The Gulf States sternly believe in trading according to the sharia law and want Islamic finance to be incorporated in their every dealing.
Future of Sharia Lending in Non-Muslim Countries: