Sharia Finance Managing Risks: The Case of Covid-19

Abstract

Purpose: The purpose of our work is to analyze the efforts of the Islamic financial industry to deal with the COVID-19 crisis and highlights its support for conventional finance, and global economy. Design/Methodology/Approach: Desk research and case studies were provided to identify type and scope of the legal and economic measures taken by the governance of Islamic finance meeting the challenges imposed by the Coronavirus pandemic and analyze how they match with the conventional finance proposed resolution. Findings: The outcome of this article is the evaluation of main measures of the Islamic finance system according to their effectiveness and efficiency providing a case study of the COVID-19 crisis. Practical Implications: The approach of the best practice to the global financial policy has been proposed. Global Islamic finance is largely concentrated in the Middle East, Asia and North Africa, where the Gulf Islamic finance markets hold a 40.3% share. The findings have been used to consider as the policy directives for the conventional finance system. Originality/Value: The assessment of the impact of the measures taken by Islamic finance industry, in short and long-term as a results of the process of integration and harmonization to conventional finance.