Diversification of Islamic Financial Insturments
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each mode. This will be an effective approach to diversify the usage of Islamic financial
instruments.
 Low awareness of the various Islamic financial instruments among investors and people
in general also lead that they focus on famous modes like Murabahah and Ijarah. Related
authorities should promote other modes (Mudarabah, Salam, Istisna, Musharakah
Mutanaqisah …etc.) and present them in an easy-to-understand way and highlight their
benefits and features. Academic institutions could also play an important role in this
regard by organizing public lectures to increase people’s knowledge of different
structures of Islamic finance outside Murabahah and traditional banking services.
 Dealing with wide arrange of financial instruments and modes require sufficient and
efficient human capital and Sudan should have more specialized academic and training
institutions in all fields of Islamic finance (banking, Takaful, microfinance, capital markets,
money markets, Waqf, zakat). Currently there’re very few specialized institutions
comparing the size of Sudan and its population and its history with Islamic finance.
 The absence of fintech startups, which require very low capital, in Sudan while other
developing Muslim countries like UAE, Egypt, Malaysia, Indonesia have been active in this
new trend of finance that depends on some of its sides on risk sharing and equity-based
instruments (e.g. crowd-funding). Therefore, Sudanese’s government should start
encouraging such startups to enhancing financial inclusion through new modes of
financing that is based on new technologies.
 It’s obvious that the current technical side in Sudan is not as expected nor as efficient as it
should be in a world where all aspects of running businesses and institutions are being
digitalized and computerized, not to mention the rapid proliferation of the financial
technology (fintech). This could firstly be noted from the websites of most Sudanese
financial institutions and even government agencies. Most of these websites are either
very limited in information or not working at all. Investors and even researches will find it
very difficult and sometimes impossible to get the basic information or data they need.
Therefore, we believe that urgent and serious attention should be paid to this issue which
is crucial in any financial system, and any developing for the current financial practices,
including increasing the diversification of Islamic financial instruments, can’t be done
without this basic technical infrastructure.
 Based on the above mentioned points and the current status of Islamic financial system in
Sudan, it is believed that current legislations governing financial sector need to be
reviewed comprehensively to take into consideration:
- Incentives for more diversification in the financing and investing portfolios of
financial institutions.
- Incentives for more dependence on risk-sharing financial modes.
- Incentives for fintech startups.
- Instructions to all financial institutions to develop their websites in an attractive
and informative way so that stakeholders could get real benefit and awareness
from these websites.
- Encouraging cooperation and coordination between different financial and
academic institutions to build up a knowledgeable human capital.