Tuesday, 09 Mar 2021 08:01 PM MYT
That is because it has a direct link to the physical assets and the use of profit and loss sharing arrangement, which encourages the provision of financial support to productive enterprises that could increase output and generally, jobs. “It also emphasises on risk sharing as linkages to the real eocnomy activities, focuses on partnership and its widening geographical reach and a rapid asset growth in the global economy, which resulted it as a reliable source of financing for funding the challenges of Covid-19 and climate change,” he said.
Citing the outlook of Islamic finance published by private organisations, Raad said the industry is expected to exhibit a low single-digit growth this year compared to 11.4 per cent growth in 2019.