There has been a strong demand for Islamic fintech products almost everywhere. Countries have been scrambling to attract bigger investments in the sector. The world has seen an upheaval due to the recent Brexit deal. The UK now risks losing its dominance in the financial services sector. Other players have been attracting more investments than London does.
The Islamic fintech sector is expected to revolutionize financial services by improving existing products and driving new business models to cater to the growing needs of Muslim and mainstream consumers everywhere.
How To Grow Islamic Fintech Sector In Your Country?
We have been seeing similar growth patterns in the Islamic fintech sector. How can countries like Malaysia, UAE, Saudi Arabia, and other leaders in the sector remain competitive in the ever-growing market? They need to adopt the following strategies to attract more investments in the Islamic fintech sector.
- Launch a fintech growth fund, which will help the public sector invest in the Islamic fintech companies to stop early-stage company owners from selling their entities to rich foreign competitors too soon.
- Set up a new retraining program. The initiative will help colleges and other training institutes offer short courses on fintech and related technologies.
- Develop new fintech “clusters” located all over the country to induce more entrepreneurs even from rural areas
- Enable high-growth companies to keep special shares, which would leave founders in control even if they sell the majority stakes of their companies.
The above-mentioned measures may require governments to formulate new regulations to strengthen the Islamic fintech sector in their respective geographical territories.
However, the business environment may be different in every country. So, the countries should study their unique business environment in the light of the existing regulatory framework before embarking on any new regulations to grow the sector.
The Financial Times reported that there was plenty of cash available in the market to support the fintech sector. If entrepreneurs introduce innovative ideas in the sector, they can easily get funds from local and foreign investors alike.
The Halal Times also predicted a strong growth pattern for the Islamic fintech sector some time ago.
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