Via the Silk Road Finance & Technology Forum in Tashkent, Secretary‑General of the Islamic Financial Services Board (IFSB) Dr. Ghiath Shabsigh emphasised that advancing digital innovation offers a compelling pathway to resolve longstanding structural gaps within Islamic finance.[/P>
He explained that, despite achieving substantial scale, the sector’s ecosystem remains uneven – banking alone accounts for roughly 70 % of global assets, while capital markets, money markets, and non‑bank segments stay comparatively underdeveloped.
Shabsigh pointed out several constraining factors: limited issuer capacity and market depth in sukuk, constrained cross‑border participation, and nascent hybrid‑risk dynamics where balance‑sheet profiles begin mirroring those of conventional banks in emerging economies.
Yet technology can act as a catalyst, enabling new efficiencies and breaking down friction that has historically impeded market access, investor diversity, and operational scaling across jurisdictions.
Crucially, the IFSB stresses that digitalisation must go beyond mere digitisation of old practices – it must deliver purposeful advancements that directly target the structural constraints that shape participation and resilience in Islamic finance.
By fostering higher cross‑border connectivity and opening broader pools of capital, digital tools can expand the reach of investors, capital, and financial products without replicating problematic legacy models.
Source link
