Surprisingly, but the majority of ordinary Muslims are not aware of what Islamic financial services are about.
As the author of the original article confesses, he has met a lot of people either complaining there are not enough Islamic financial services, or dissatisfied with the way they are provided. In fact, as economists admit, this problem is relevant for every economically-active Muslim, and when he or she has no access to financial services, it hampers his opportunities for development and simply normal existence. Although, here comes a question: is there any problem at all? And if it is so relevant, why is there no adequate supply?
Thus, this the problem has recently been discussed in the professional community “Islamic Finance in Russia and CIS” on LinkedIn. The interesting thing is that even among Muslim businessmen who work within the very sphere of Islamic finance and banking, there are serious doubts in respect of the existence of demand for Islamic financial services.
"Is there demand? I mean a real demand which terminates with purchase, and not just answering the question in a survey “Do you need it?” ” - people are asking in the community.
There is one issue. A multiple-year experience shows the opposite. The majority of clients (first of all, Muslims, of course) usually speak about some Islamic economy, but put their money in either some financial institution built upon a loan interest, or invest into property and so on. The proportion of active market here is very low, and it appears unprofitable for investors to put their money in this kind of development. Therefore, demand is too little. Of course, it exists, but not in a scale large enough to get a big financial business interested in making investment in this investment niche.
Have a look at the dynamics of Islamic markets in England or USA. Islamic cashiers in banks have been gradually opened (even some Islamic banks in London) only when their clients, complying with the norms of Islam, started taking their money from Haram banks and putting them in other (permitted) instruments/institutions. This is what some of the active participants of financial markets think. However, there is an opposite opinion. It is true that there is no broad demand for Islamic finances in Russia and CIS, however, the whole issue lies not in the demand, but in flexibility of Islamic population – whether they are able to claim their need in this kind of services.
How many Muslims at least said aloud that they need financial services complying with Islam – before continuing their conversation with a banker? Have there been organized any measures or meetings, for which investors were invited? What actions have been taken by various Muslim business clubs in order to announce the demand for Islamic finance services?
At the end of the day, the majority of ordinary Muslims have no idea what Islamic financial and banking services are, considering that those are “credits without interest rates”. And if there appears a supply, positioning itself as Islamic, the majority of Muslims will not understand what conditions they should follow, so that apply it to their reality.
That is why everyone should ask themselves – do we really need financial services complying with the Koran, or we are fine with usurious banking services and belief in absence of any alternative?
