Khalid Mehmood, Karine Oganisjana, Natalja Lace

Proceedings of the 27th World Multi-Conference on Systemics, Cybernetics and Informatics: WMSCI 2023, pp. 391-398 (2023); https://doi.org/10.54808/WMSCI2023.01.391

Khalid Mehmood
Faculty of Engineering Economics and Management, Riga Technical University, Riga, Latvia

Karine Oganisjana
Faculty of Engineering Economics and Management, Riga Technical University, Riga, Latvia

Natalja Lace
Faculty of Engineering Economics and Management, Riga Technical University, Riga, Latvia

Cite this paper as:
Mehmood, K., Oganisjana, K., Lace, N. (2023). Challenges Facing Islamic Banking: The Case of Asian Region. In N. Callaos, E. Gaile-Sarkane, S. Hashimoto, N. Lace, B. Sánchez, M. Savoie (Eds.), Proceedings of the 27th World Multi-Conference on Systemics, Cybernetics and Informatics: WMSCI 2023, pp. 391-398. International Institute of Informatics and Cybernetics. https://doi.org/10.54808/WMSCI2023.01.391

This study examines the significant challenges encountered by Islamic banks in Asia. The research employs a qualitative content analysis as its methodology. Qualitative data were collected from scientific literature authored by Muslim and non-Muslim writers. The study identified several challenges. However, the crucial obstacles that Islamic banks face include a lack of awareness and insufficient staff training, the absence of a separate Islamic legal system, government and central bank support, and a shortage of qualified Shariah experts, hindering Islamic banks’ development and growth. In addition to these crucial challenges, the study acknowledges that other factors also impact the establishment and expansion of Islamic banking in the region. By identifying and understanding these challenges, stakeholders in the Islamic banking sector can work towards implementing effective strategies and policies to address these issues. Overcoming these obstacles is essential for the sustainable development and growth of Islamic banking in Asia.