Impact of Islamic Banking on Global Commerce and Business

Abstract

This research paper aims to critically analyze the place of Islamic banking in the international business environment, drawing on its theoretical tenets, historic antecedents, empirical data, and societal-political repercussions. Based on Islamic Shariah law, Islamic banking provides an alternate form of the banking system that adheres to Islamic law concerning moral risk-sharing and asset-based financing. In undertaking the study, systematic case analysis of the IIOs, statistical analysis, and qualitative research are used to assess the impact of Islamic banking on economic growth, financial inclusion for its population, and overall financial stability. The opportunities and challenges demonstrated in the research case relate to the effect of Islamic banking on consumer behavior, entrepreneurial endeavors, culture, and identity. The innovation and development in Islamic Banking, the use of technology adoption in Islamic banks, renewable finance, and market access in Islamic Banking are also discussed. The study raises the question of how governments can move forward to collapsing obstacles, developing market awareness, and fostering ethical finance and innovations in ethical finance to develop proper ethical finance in the world economy. The study becomes relevant in providing the banking, trade/commerce and ethics literature with important insights to appreciate and appreciate the presumably positive role of Islamic banking, particularly in responding to the existing global challenges that are detrimental to human activities.