Problems and development prospects for the Islamic financial market services in the Chechen Republic

Abstract

Subject. The article considers trends in the Islamic finance industry, using the case of the Chechen Republic. Objectives. The aim is to analyze current processes observed in the Islamic finance market of the Chechen Republic and, on this basis, to form reserves of development. Methods. The study rests on institutional approach enabling to analyze the influence of institutions on activities of the Islamic finance market of the Chechen Republic, and also employs standard methods of scientific cognition, like analysis and induction. Results. The analysis of the Islamic finance market of the Chechen Republic found that relatively dominant trends are visible against the background of economic processes in the regional aspect, however, the companies of the market under study are developing according to the same model. This somewhat narrows the understanding of the Islamic economy and acts as a deterrent to the development of the industry, although mitigated by the fact that the market is in its infancy. Conclusions. The study revealed a mismatch of demand and understanding of the essence of Islamic finance, which significantly updates awareness-building in this direction, and implicitly points to the importance of expanding market participation.