Abstract
Islamic finance industry has become one of the most active and fast growing segments in the international financial system. It has emerged as an alternative to the commonly known and available conventional finance. In this paper, the authors will analyse the challenges occurring the globalization of Islamic Trade Finance by examining the causality between legal and regulatory issues towards the efficiency of shari’ah-compliant finance model. Comparative analysis will be performed by comparing the adaptation of Islamic Trade Finance in various countries. Not all countries see the importance of practicing Islamic Trade Finance due to the lack of exposure and clear understanding its processes and/or products. The difficulties lie in developing efficient yet shari’ah-compliant products. Discriminant analysis shows that religion and community service are the most important positive attitude that determines the potential use of Islamic methods of finance by retail consumers. It is believed that knowledge and exposure of Islamic Trade Finance should be provided worldwide, especially its advantages in providing worldwide trading business opportunities when dealing with Islamic countries.
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References
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Nawang, W.N.A.W., Misran, N.S., Mohyiddin, R. (2019). The Challenges in Islamic Trade Finance for SMEs in Malaysia. In: Hassan, F., Osman, I., Kassim, E., Haris, B., Hassan, R. (eds) Contemporary Management and Science Issues in the Halal Industry. Springer, Singapore. https://doi.org/10.1007/978-981-13-2677-6_34
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DOI: https://doi.org/10.1007/978-981-13-2677-6_34
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