Globalization and Islamic Finance: Convergence, Prospects, and Challenges

Recounts the relatively simultaneous emergence of globalization and the Islamic finance industry. Analyzes empirical evidence of the impact of globalization on Islam and Islamic finance, and whether the former has caused a doctrinal divergence in Islamic finance away from initial Qur’anic and Shar’iah principles. Concludes with policy recommendations to close the gap between Islamic financial principles and practice, along with predictions of the expansion of risk sharing, and likely convergences between the industry and globalization.