Diversification of Islamic Financial Insturments
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into the debate on that, from studying the case studies to have specific policy
recommendations and strategies that the industry should follow. While the report gives
specific policy recommendations for different countries, depending on the extent of Islamic
finance sectors’ growth in the country, some general policy recommendations that need to be
followed globally for a shared prosperous and growth oriented financial society are:
a. Creation of an enabling regulatory environment by supporting consistent regulations
and development of standards to promote risk sharing.
b. Development and introduction of risk-sharing products and services instead of
focusing on replication of conventional risk- -transfer products
c. Move towards harmonization of Shariah governance standards and policies across
different jurisdiction.
d. Expanding Islamic finance’s reach to the lower income group of society.
e. Development and training of human capital and literacy in Islamic finance.
The report also emphasizes that as Shariah compliance is the unique differentiating factor of
Islamic finance, there is an immediate need for having a global Shariah governance framework.
It explains a need for greater transparency and disclosure in the financial reporting of IFIs, and
also states that policy makers should focus on developing rating standards which would help
investors with information on Islamic finance products. The need for adaptation of Fintech and
product diversification to attract the different markets, from smart phone users to agricultural
sector, SMEs, and low income groups is also emphasized.