TEHRAN (IQNA) – A new study has found that Islamic fintech is progressing at pace and poised for rapid growth over the coming years.
The 2022 Global Islamic Fintech report found that the global Islamic fintech market was worth $79bn (£66.66bn) in 2021, accounting for 0.8 per cent of the total global fintech market.
The report – which was created by Dinar Standard and Elipses – predicted that the size of the Islamic fintech market is expected to reach $179bn by 2026.
Shariah-compliant peer-to-peer lending platform Qardus noted that the Islamic fintech market has been “progressing at pace” and has a “clear opportunity to further embed itself within the world of global finance.”
“With the socio-economic upheaval and geo-political changes brought about by the global COVID-19 pandemic and the ongoing war in Ukraine, Islamic fintech currently has the chance to become not only a game changing, disruptive force within global finance, but an influential driver of global financial inclusion,” said Qardus representative Ali Ismail.
“If Islamic fintech continues along the same path of rapid growth that it has been travelling along on for some time, the sector will unquestionably emerge as a competitive selection of Sharia-compliant alternatives to the wide range of innovative fintech startups and established fintech giants that have been a mainstay of Western, Asian and more recently African economies over the last quarter century.”
The 2022 Global Islamic Fintech report also found that 75 per cent of young Muslims want their banks to make investments that ‘do good in the world’, with 62 per cent opposed to their bank lending to tobacco companies and 69 per cent against their bank lending to gambling institutions.
74 per cent of young Muslims said it’s important they can access their bank’s services via a mobile app.
Islamic fintech covers any financial technology that is built on Shariah principles, prohibiting profiting from debt, interest payments and investing in businesses related to alcohol, tobacco and gambling amongst others.