Challenges of Islamic Finance in Increasing the Market Share and the Possible Solutions

Islamic finance has made significant progress in home and abroad and in all sectors of the economy, including in legal and ethical aspects of life. This study seeks to define the legal framework for Islamic banking and to explain the role of challenges to it so that systems can be compared, and the experiences of the Islamic banks can be evaluated. This paper emphasizes the distinction between Islamic finance arrangements and other financing options in a global legal context. The growth of Islamic finance is being influenced by numerous factors, including the growing Muslim population, the surge in interest in ethical investing, and the need for financial services that adhere to Shariah. Islamic finance and Islamic economics are challenged by several problems, including lack of knowledge, supply constraints, higher prices, complexities, lack of liquidity, regulatory uncertainty, lack of political commitment, social and cultural barriers, and ignorance. This study attempts to explore all such challenges and offer a modest roadmap for overcoming such challenges.