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Buffalo Law Review

Alyssa Carbone

First Page

529

Document Type

Note

Abstract

Islamic finance, poised for a significant rise in prominence, stands uniquely at the intersection of religious adherence and modern financial systems. With Islam projected to overtake Christianity as the dominant world religion by 20501 and Muslims constituting the fastestgrowing religious group, expected to reach a global population of nearly 3 billion adherents in 20602, the demand for financial products aligned with the values of Islam is set to soar. Accordingly, Islamic finance, specifically Islamic capital markets, has strong projections of growth, even amidst economic instability in traditional Western financial markets.3 Yet, despite its promising outlook, Islamic finance remains largely unfamiliar and enigmatic to Western audiences. Amidst this apprehension, Western financial markets should embrace the burgeoning captive market and compatibility of Islamic finance with traditional notions of environmental social governance (ESG) and socially responsible investing (SRI) while remaining cognizant of potential challenges. It is imperative to explore the convergence of economic development and justice against the backdrop of Islamic finance’s ascent on the global economic stage. Arguably, Islamic finance represents a just and sustainable alternative for those who are disenchanted with the current state of Western finance and actively seeking more sustainable options. There exists a profound opportunity for the global financial community to acknowledge and draw lessons from the principles of Islamic finance. By integrating foundational Islamic financial ethics and risk-sharing mechanisms into mainstream Western financial practices, a pathway emerges toward constructing a more resilient and responsible global financial landscape that prioritizes ethical conduct, social responsibility, and long-term stability over mere profit.

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