Challenges and Potentials of Islamic Finance Products in the Australian Financial Market Regulation: A Critical Review

Abstract

The purpose of the study is to identify the key challenges in the growth and development of Islamic financial services in Australia for its largest Muslims minority. It also assesses the prospects for the emergence of Islamic banking in the Australian market in parallel to its conventional practice. The method employed in this study is a mixture of direct observation from legal and regulatory perspectives and author's personal experience, curiosity and association with this industry. However, Islamic legal context remains the only theoretical basis of the study. Through examining the above the paper seeks to argue that in order to meet the core challenges of Islamic finance a separate legal framework be established so as to facilitate its growth and development in the Australian financial market