Islamic Finance: Accelerating Growth Despite Challenges
Global Islamic finance reached ~$4 trillion in recent years, with an annual growth rate of 10-15%, outpacing conventional finance's ~5%. This growth is driven by 1.9 billion Muslims and growing interest from non-Muslims in ethical, interest-free products.
Distinctive Factors of Islamic vs Conventional Finance
Islamic finance is based on tangible assets, profit-and-loss sharing, and a ban on riba (interest) and gharar (uncertainty). These principles attract investors seeking real economy exposure, while conventional finance relies on interest and debt, making it more crisis-prone.
Role of Islamic Fintech
With decentralized finance (DeFi), innovative Sharia-compliant services are possible without traditional intermediaries. Smart contracts enable principles like 'seller owns the asset', stablecoin payments (e.g., USDC), and surplus refunds - all implemented by platforms like Qist.
Growth Comparison Between the Two Systems
Islamic finance grows 2-3 times faster than conventional finance, with projections of $5 trillion by 2028. Its resilience stems from being asset-backed, shielding it from debt bubbles and speculative crises.
How Qist Implements That
Qist is a decentralized Islamic finance platform on Base offering Sharia-compliant financing: seller owns the asset, USDC payments, no riba/gharar, surplus refund, 3-day grace period, and 2% fee. The open contract is verified on BaseScan for transparency. Qist thus combines Islamic finance growth with DeFi innovation.
