Importance of Transparency in Islamic Finance

Abstract

Islamic finance is being practiced in over 75 countries around the world with about 550 Islamic financial institutions in the field. This study analyzes the importance of transparency in different aspects for the Islamic financial institutions and clients/savers in the Islamic finance market. The work suggests ways of establishing transparency in the Islamic finance market. It is also discussed in the study that the establishment of these transparency aspects will strengthen the confidence of clients/savers in the Islamic finance market, while bringing some new contributions to the Islamic financial institutions.