Editorial

Abstract

In the Name of Allah, Most Gracious, Most Merciful. The tendency in the early stages of the Islamic finance industry was to replicate successful products from the conventional finance industry after adjusting them to conform to Sharīʿah principles. This strategy has been highly effective in placing Islamic finance on the global map. Both Muslims and non- Muslims have been attracted to products such as those structured using debt-based Sharīʿah contracts. Newer generations, from both the conventional and Islamic milieu, have raised their expectations of finance to be more responsive to their desire for social and environmental impact. As a result, bankers and finance practitioners are having to look for innovative and more socially responsible strategies to bring greater added value to the practice. Within the area of Islamic finance, “sustainability” and other themes such as “value-based intermediation” and “Islamic social finance” have thus gained significant attention. They are being promoted to advance the ethical values underlying Islamic finance. The objective is also to encourage the development of an improved suite of products and services that would facilitate community empowerment, sustainable environment and economic growth. The objective is, however, to achieve these socially laudable goals without compromising the elements of profit and shareholder returns. The challenge therefore is about dispelling the “replication” habit and getting into the latest “value-addition” mode to pursue the higher objective of sustainability with/beyond profits. Disruptive tools such as fintech and blockchain technology are accordingly being looked into to advance this latest narrative of Islamic finance.