Marketing Islamic Financial Services: A Review, Critique, and Agenda for Future Research

Abstract

Islamic finance has experienced rapid growth globally, surpassing the USD 2 trillion mark in 2017. As a result, the literature related to Islamic finance and banking is rather rich. Despite the richness of the literature, our knowledge of the marketing issues related to Islamic finance is modest and somewhat ambiguous. Therefore, we review several decades of research about the Islamic finance in various parts of the world. We identify and discuss three main research themes that draw on different conceptualization and theoretical lenses. After synthesizing their respective findings, we propose several avenues for future research that integrate these three research themes with the goal of developing a more nuanced understanding of Islamic finance and its marketing. While we believe that our review will mainly serve as a crucial reinvigoration and launch point for future research on Islamic finance marketing, it is also of great practical benefit for policymakers of various countries and especially managers of financial service firms interested in marketing Islamic banking and financial services to their customers.

The impact of Coronavirus (COVID-19) outbreak on faith-based investments: An original analysis

“…In the case of financial characteristics, Shariah complaint indexes are characterised by low leverage and low account receivables, which reduce the financial risks and vulnerabilities related to periods of crisis such as COVID-19 ( Farooq and Alahkam, 2016 ). Hence, extensive attention has been devoted to such faith-based investments ( Hussain et al, 2019 , Alam and Seifzadeh, 2020 , Zandi et al, 2019 , Sherif, 2016 , Sherif and Erkol, 2017 , Rifqi, 0000 , Sherif and Hussnain, 2017 , Kalimullina, 2020 , Sadeghi et al, 2008 , Derigs and Marzban, 2008 , Alotaibi and Hariri, 2020 , Seyyed et al, 2020 , Tahir and Ibrahim, 2020 , Akguc and Al Rahahleh, 2020 , Ahmad et al, 2020 , Fu et al, 2020 , Castro et al, 2020 ).…”

“…Over the past several decades, Islamic finance has witnessed a remarkably broad expansion and unprecedented growth. It has grown from just $200bn in 2003 to an estimated predicted total of over $4 trillion in assets by 2030 ( Alam and Seifzadeh, 2020 ). It is now offered in more than 60 countries and over 300 Islamic financial institutions.…”

“…Such significant growth has recently also extended to many non-Muslim countries in Asia and Europe ( Alam, 2019 ). This is due to a broad diversification in cultures with a considerable number of Muslims immigrants ( Alam and Seifzadeh, 2020 ).…”

The Investment Performance of Ethical Equity Funds in Malaysia

“…Shariah principles prohibit: (i) elements of interest (riba); (ii) uncertainty (gharar); (iii) gambling (maysir); and (iv) non-halal activities (such as products related to pork and alcohol). For details, see Chaudhury and Bhatti (2017), Halteh et al (2018) and Alam and Seifzade (2020) on financial distress and financial inclusion issues in the area of Islamic banking and finance.…”

Impacts of Endogenous Sunk-Cost Investment on the Islamic Banking Industry: A Historical Analysis

“…There are two important sources of growth in Islamic banking in Jordon. First, investors came to hold a shared perception that Islamic banks adopt more responsible business practices (see Alam and Seifzadeh 2020). Second, it is widely held that Islamic banks' better financing quality lowers their credit risks (see Misman and Bhatti 2020).…”