How Is The Introduction Of Islamic Banking Affecting The Financial Market In Mauritius?
The Islamic banking system is said to be a significant part of the financial market in Mauritius. Even though the Islamic banking system follows a protocol that seems somewhat old fashion, experts feel it may help Mauritius get on its own financial feet in the years to come. There are economists that feel Islamic banking is growing not only financially, but more people are developing an interest that may help them benefit in different ways. This means more business institutions and corporates may see the funding they need to help their industries grow and flourish.
While this is a new concept Mauritius is adapting to, some feel there is more beyond financial gain for the island nation. This is something different since it does not completely conform to traditional banking concepts. For instance, financial investments may be based on profit and loss sharing. In some cases interest may not be paid on a loan, but just the amount the borrower used instead. Some investments though may be prohibited or limited due to Islamic financial practices. This will still be a positive experience experts expect as the island nation works to further develop its financial stability.
There are various goals the introduction of Islamic banking will work to achieve. One includes helping Mauritius become a regional hub for Islamic banking concepts. This may take a few years with the help of special plans developed and executed with the assistance of investors, financial experts, and government leaders. Mauritius felt Islamic banking would help them make better investments that would benefit management funding needs and work to resolve debt. This is a significant move many investors feel will make a difference in the offshore banking market.
Over a million Muslims alone live on the island of Mauritius. Many wonder what other effects will take place in the years to come as the Islamic finance industry expands. Government leaders of the island have had a strong interest for years to introduce the concept and jump into the sector of offshore banking. In the future many hope this financial partnership will help encourage positive social interaction among the people in this part of the world. Many hope for social justice even when the economy in other parts of the world seem uncertain or are in crisis.