Diversification of Islamic Financial Instruments
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legal regime which covers the consumer’s protection in Islamic financial transaction. It
becomes more important since Islamic financial transactions involve multiple layers of
asset based transaction the laws and regulations must entail that specific consumers
are protected.
- Information disclosure on transactions should be disclosed to all concerned
parties with clear explanation of the risks involved. The reason being, a
majority of consumers have religious convictions towards opting for Islamic
financial products it is essential to protect consumers and not only ensure
Shariah compliance but its full disclosure.
- Governments and international bodies should undertake coordinated efforts
to enhance Islamic finance literacy to expand the reach of the sector. Islamic
financial literacy does not only entails teaching Islamic finance concepts in
school and college curricula, different stakeholders such as regulators,
financial institutions, Islamic finance trade associations can use various
methods to disseminate knowledge on Islamic financial products and
operations.
 Critical to the growth of Islamic finance is the provision of adequate human capital to
sustain the Islamic financial sector and to innovate for progress.
- At the public level, governments and regulators can take initiatives to establish
educational, training and research institutions. One area of that needs focus is
policy related research and training including topics on the development of
Islamic architectural institutions.
- Private Institutions such as research and training institutions, advisory firms
and trade associations can take the lead in developing ideas and acting as
think-tanks to government and policy makers.
- Universities and academic institutions will play an important role not only in
providing education in Islamic finance but also in conducting research that can
support the industry.