The Challenges and Potential of Improving Access to Islamic Financial Services in Non-Muslim Countries: The Case of Australia

Abstract

The purpose of this study is twofold: (1) to identify the key challenges of improving access to Islamic financial services (IFS) in Australia for its large Muslim minority and (2) to assess the potential prospects for the emergence of Islamic finance (IF) in the Australian market, parallel with its conventional practice. The method employed is a mixture of direct observation and author’s personal experience, curiosity and association with this industry. However, Islamic legal context remains the only theoretical basis of the study. The approach for the study is not supplemented by any empirical work, nor have the attempts been made to evaluate the economic efficiency and profitability or otherwise, of IF in Australia. Through a thorough examination, it seeks to argue that in order to meet the core challenges of IFS in this jurisdiction, a separate legal framework must be established to facilitate its growth and development in the Australian financial market. Besides the direct policy recommendations and suggestions for further research provided for authorities concerned, the study sheds new light on how the relevant challenges are met for improving access to IFS in Australia for its largest minority.