What is it about?

This paper highlights that lack of flexible financing options, incomplete product mix, scale diseconomies, contractual frictions and constraints in liquidity management are potential future challenges for this industry.

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Why is it important?

It identifies potential future challenges and growth opportunities for Islamic banking industry.

Perspectives

Potential future challenges include lack of flexible financing options, incomplete product mix, scale diseconomies, contractual frictions and constraints in liquidity management. Growth opportunities include entering into infrastructure financing for development spending, energy financing, investment banking and sovereign financing.

Dr Salman Ahmed Shaikh
Islamic Economics Project

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This page is a summary of: Analysis of challenges and opportunities in Islamic banking, International Journal of Financial Services Management, January 2014, Inderscience Publishers,
DOI: 10.1504/ijfsm.2014.065581.
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