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The Impact of COVID-19 Pandemic on Islamic Finance According to the Dinar Standard Report 2021/2022
Author : Dr. Safwan Odaybat
Date Added : 11-09-2022

The Impact of COVID-19 Pandemic on Islamic Finance According to the Dinar Standard Report 2021/2022

 

COVID-19 pandemic had an evident impact on the economic, social, and political sectors of life. The Islamic finance sector is a key contributor to economic life worldwide, given its development and incremental aspects of growth in recent years.

Amongst the most important and precise technical studies indicating the impact of the COVID-19 pandemic on Islamic finance (2021/2022) in numbers is the report prepared by Dinar Standard in partnership with Salam Gateway with the support of DIEDC. This report was published by the International Islamic Center for Reconciliation and Arbitration (IICRA) in Dubai, Edition No. (19), 4rth quarter, 1443 H/June 2022.

The key points of this report are:

First: The value of Islamic finance assets in 2019 has risen from 2.52 trillion US dollars to 2.88 trillion US dollars amounting to 13.9%. The report expected this sector to recover over the coming five years with an overall growth by 5%.

Second: The rapid growth of the Islamic Takaful insurance, especially in the Gulf countries and Indonesia.

Third: 2020 witnessed a large number of initiatives and measures that help enhance the growth of Islamic finance, particularly in the countries of the Organization of Islamic Cooperation. In addition, it was decided to establish new Islamic banks in countries such as Tajikistan, Uganda and the Philippines, in addition to digital banks in Kazakhstan and Malaysia.

Fourth: The investment of Islamic Financial Technology as well as the combination Islamic financial institutions through out possession and combination that reached 4.93bn. in 2019 to 2020.

Fifth: The activity of the Islamic Sukuk decreased but didn`t stop where it was announced that new Sukuk were issued in south Africa, Nigeria, Britain, Gulf and south east Asia countries.

Sixth: Developing the sector of social finance through collective funding, fostering partnerships between the private and public sectors or supporting small and medium-sized finance institutions. 

Based on the above notes, the following can be noticed:

  1. Despite the fact that the report was prepared during the COVID-19 pandemic, Islamic finance has witnessed an evident growth and recovery is expected in the coming years. In the same year of preparing this report, the number of the Islamic finance institutions has reached 1462.
  2. Adopting social finance that rests on Takaful and cooperation between people to ease their problems, as is the case with Zakah (Alms giving) and Sadqah (Voluntary charity) and providing financial support to small and medium-sized financial institutions. Moreover, partnership between the private and public sectors is an example of this form of finance. New platforms have been established for collective funding between counterparts in Britain and Malaysia, and an initiative was launched to benefit from social Islamic finance in the UN in partnership with the Islamic Bank for Development in 2021 (news.UN.org).
  3. The COVID-19 pandemic encouraged Islamic finance to develop financial technology through modern electronic platforms, digital banks, and distinguished services of digital banking.
  4. Islami Sukuk have witnessed a remarkable growth within the recent years. As indicated by the report, this product hasn`t stopped despite the impact of the COVID-19 pandemic where their issuance was resumed in several countries. Here, it is worth pointing that later in the year 2021, the fourth issuance of the Sukuk for the Murabah to the purchase orderer were issued in favor of the Jordan National Electricity Company to fund the energy sector with a total value of 225 million JDs by an annual Murabaha percentage of 3.55% over five years.

Unequivocally, these notes indicate that the Islamic finance sector is replete with Sharia, technical, and legal competencies enabling it to face difficult situations, such as COVID-19 pandemic to create an opportunity to keep abreast with developments, innovate new products to address the needs of the people, and continue Islamic finance services.  

 

The published article reflects the opinion of its author

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Summarized Fatawaa

What is the ruling of Islamic Law on a father shaking hands with his son’s wife after she has been divorced three times?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
The wife of one’s son is among the women permanently prohibited to the husband’s father as soon as the marriage contract  is concluded, based on the saying of Allah the Exalted: “Prohibited to you are your mothers, your daughters, your sisters, your paternal aunts, your maternal aunts, your brother’s daughters, your sister’s daughters, your foster mothers, your foster sisters, your wives’ mothers, and your stepdaughters under your guardianship [born] of your wives with whom you have consummated marriage. But if you have not consummated marriage with them, there is no sin upon you. [Also prohibited are] the wives of your sons who are from your loins, and that you take [in marriage] two sisters simultaneously, except for what has already occurred. Indeed, Allah is ever Forgiving and Merciful.” [al-Nisāʾ/23]
This prohibition begins once the son’s marriage contract with his wife is complete, and it remains in force even if the son separates from her before consummation or before any seclusion (khalwah) with her. It is therefore permissible for the father to shake her hand and to be alone with her, provided there is no fitnah (temptation) and no suspicion.
It is stated in ʿUmdat al-Sālik (p. 204): “It is forbidden to marry… the wives of one’s fathers and of one’s sons. All of these women become prohibited by the mere contract, … all of that being a permanent prohibition.” End quote, with slight adaptation. And Allah Almighty knows best.

What is the ruling on making up the regular pre-Dhuhr *sunnah* (*al-sunnah al-rātibah al-qabliyyah*) for one who missed it in the Dhuhr prayer?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
Every timed supererogatory prayer (nāfilah) is recommended (mandūb) to be made up if its time passes. As for a nāfilah that precedes the obligatory prayer, performing it before the farḍ is a matter of proper etiquette (adab); if it is prayed after the farḍ, it is still considered adāʾ (performed within its time). If the time of the farḍ has ended, it is recommended to make up (qaḍāʾ) the nāfilah for one who did not pray it.
Whoever misses the sunnah before Dhuhr, whether with an excuse or without one, it is recommended for him to pray it after the obligatory Dhuhr prayer, within the time of Dhuhr, even at its end, and it counts as adāʾ, not qaḍāʾ. It is also recommended for one who missed the pre-Dhuhr sunnah to pray it before the post-Dhuhr sunnah, in observance of the proper order. It is stated in ʿUmdat al-Sālik wa ʿUddat al-Nāsik (Vol.1/p.60): "What precedes the obligatory prayer has the same time as the obligatory prayer, and performing it before the farḍ is a matter of etiquette; after it, it is adāʾ. What follows the farḍ has its time begin with the performance of the farḍ and end with the end of its time."
If the time of Dhuhr has ended, it is recommended for him to pray both the pre- and post-Dhuhr sunnahs, and they count as qaḍāʾ for both. It is stated in ʿUmdat al-Sālik (1/61): "Every timed nafl, such as the ʿĪd prayer, Duha, Witr, and the regular rawātib of the obligatory prayers, if it is missed, it is recommended to make it up forever." And Allah Almighty knows best.

Is the prayer of someone who didn`t face Quibla (Ka`ba direction) valid?

All perfect praise be to Allah,The Lord of The Worlds.                                                                                                                                                              Facing the Quibla is a condition for the validity of prayer, and the prayer of the person who hadn`t faced the direction of the Quibla is invalid, and he is obliged to repeat it. And Allah Knows Best.

What is the ruling of Islamic Law on supplicating with other than the transmitted (Ma'thur) supplications in prayer?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
It is permissible to supplicate (make du'a) during the prayer for anything from the affairs of religion or worldly life, and the prayer is not invalidated by doing so.
Shaykh al-Islam, the Imam an-Nawawi, may Allah have mercy on him, says: "Our madhhab [i.e., the Shafi'i madhhab] holds that it is permissible for a person to supplicate during it [the prayer] with anything that is permissible to supplicate with outside the prayer, from the affairs of religion or worldly life. He may say: 'O Allah, grant me wholesome sustenance, offspring, a house, and a beautiful young wife' — describing her; or: 'O Allah, free so-and-so from prison,' or 'destroy so-and-so,' and other such things — and none of this invalidates his prayer according to us. And this is also the view of Malik, ath-Thawri, Abu Thawr, and Ishaq." [Al-Majmu', Vol.3/P.454]. And Allah, the Exalted, knows best.

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