nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒01‒11
three papers chosen by
Mohamed Mohamed Tolba Said

  1. Islamic Banking Within the UAE’s Multicultural Context: Is It Time for Women-Specific Marketing Strategies? By Suzanna El Massah
  2. Islamic Republic of Afghanistan; Staff Report for the 2019 Article IV Consultation and the Sixth Review under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Islamic Republic of Afghanistan By International Monetary Fund
  3. Islamic Republic of Afghanistan; Technical Assistance Report-Report on Government Finance Statistics Technical Assistance Mission (October 18-31, 2018) By International Monetary Fund

  1. By: Suzanna El Massah (Cairo University)
    Abstract: Islamic finance and banking services have witnessed rapid growth in recent decades and constitute a $2.2 trillion industry. However, an estimated 80% of the potential client base for this industry remains untapped, and banks particularly lack strategies to attract female clients. This mainly owes to a deficit of understanding of the factors that influence women to consider Islamic banks as an option. This research aims to address this gap by examining the factors that influence women to choose an Islamic bank, through a multi-group analysis of Muslim and non-Muslim women in the UAE. By drawing from the theories of reasoned action and planned behavior, we seek to identify the factors that guide women’s banking choices, and the effect of religion on such choices. Primary data was gathered using a semi-structured questionnaire comprising three independent variables (Awareness, Bank Attributes, and Social Stimuli), with Customer Choice and demographic data- including religion- being the dependent variables. Structural Equation Modeling was applied, and the results revealed that women's choice of Islamic banks is significantly influenced (up to 90.5%) by Awareness, relative to which Bank Attributes and Social Stimuli are less impactful. MultiGroup Analysis was performed to determine the impact of religion on the relation between these variables and women's banking choices. The effect of Awareness and Bank Attributes is significantly greater on non-Muslim and Muslim females respectively, although religion has no impact on the effect of Social Stimuli, which remains insignificant for both groups. This study's results hold significant implications for how Islamic banks could enhance the awareness of Muslim and non-Muslim women regarding their services, through strategies specifically designed to target these potential customers.
    Date: 2020–12–20
  2. By: International Monetary Fund
    Abstract: This paper presents 2019 Article IV Consultation with Republic of Afghanistan and its Sixth Review Under the Extended Credit Facility Arrangement. Despite difficult circumstances, the Afghan authorities have continued to demonstrate strong commitment to the economic program supported by the Extended Credit Facility arrangement. Given the uncertain outlook dominated by downside risks, policies should focus on maintaining macroeconomic and financial stability and putting the conditions in place for stronger and more inclusive growth, led by the private sector. The authorities have made progress with their self-reliance agenda, yet strong financial support from donors is needed to help Afghanistan stay on the path to greater prosperity. Fiscal policy should continue to target a broadly balanced budget, supported by fair and sustainable domestic revenue mobilization and strong financial support by donors. Resources should shift toward pro-growth and pro-poor outlays and create fiscal space to meet the country’s considerable development needs.
    Keywords: Public debt;Currencies;Credit;Banking;Corruption;ISCR,CR,Afghanistan,right,authority,debt
    Date: 2019–12–20
  3. By: International Monetary Fund
    Abstract: This Technical Assistance paper assesses Islamic Republic of Afghanistan government’s finance statistics (GFS). The mission updated the AFMIS bridge tables to enable producing Budgetary Central Government data according to the GFSM 2014 classifications including the economic (object) and functional classifications, reviewed government debt compilation, assisted developing bridge tables for extrabudgetary units, and provided hands-on training for GFS compilers in compiling the data for the general government. Despite good outcomes, the capacity for GFS compilation remains slim and securing support of the management remains critical for both maintaining the current achievements and further improving the government financial data consistent with the GFSM 2014 methodology. Afghanistan has made good steps toward further improving GFS and starting to provide supplementary accrual information, while there have been issues with the quality of the source data. The mission suggests that a GFS Technical Working Group should be set up to coordinate the GFS reforms, address the issues in applying the GFSM 2014 methodology, and advise the Ministry of Finance management on important matters requiring attention.
    Keywords: Government finance statistics;Financial statements;Financial statistics;Fiscal accounting and reporting;Budget planning and preparation;ISCR,CR,GFS compilation,GFS compiler,cash basis,BCG account,compilation method,debt report,GFS reform
    Date: 2019–12–20

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