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Regulatory Frameworks, Product Development and Market Penetration: A Comparative Study of Islamic Finance in Malaysia and Saudi Arabia

Year: 2024

Type: article

Abstract: This paper presents a comparative analysis of the regulatory frameworks, product development, and market penetration of Islamic finance in Malaysia and Saudi Arabia: two leading players in the global Islamic finance industry. Malaysia adopts a dual system that combines centralized and institutional Shariah oversight, while Saudi Arabia employs a decentralized regulatory approach. In terms of product development, both countries prioritize Shariah compliance and innovation, though Malaysia offers a broader range of Islamic financial products. Market penetration is evaluated using key indicators such as Islamic banking assets, Takaful assets, and Sukuk issuance. The findings reveal that each country excels in different areas: Saudi Arabia leads in the total asset value of Islamic finance, whereas Malaysia shows a higher proportional adoption of Islamic financial products. Overall, the study provides a comprehensive understanding of the factors driving the success and distinct characteristics of Islamic finance in these two nations, offering valuable insights into their evolving financial landscapes and highlighting their respective strengths.

Source: International Journal of Academic Research in Accounting Finance and Management Sciences

DOI: 10.6007/ijarafms/v14-i4/23175

Authors: Syafiqah Ilyani Ahmad Saharudin, Norhidayah Abu Bakar

Institution: Sultan Zainal Abidin University

Language: English

Topic: Islamic Finance and Banking Studies

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

Funder: Universiti Sultan Zainal Abidin

OpenAlex ID: W4404596158