IslamicFinance.de

Islamic trade finance is poised for change with the launch of new products and common standards. Islamic banks have been laggards in trade finance but some see a business opportunity here. According to the General Council for Islamic Banks and Financial Institutions (CIBAFI), digital tools such as blockchain can support this by helping to lower costs and speed up sharia-compliant transactions. Islamic trade finance is estimated at around $186 billion, compared to the $4.4 trillion worth of trade finance activity in Muslim-majority countries. Some firms are now introducing digital Islamic trade finance platforms. Emirates Islamic Bank has already launched its online supply chain tool. There is also a push towards standardisation of practices. The Bankers Association for Finance and Trade (BAFT) and the International Islamic Financial Market (IIFM) are developing standard documentation for both Islamic-funded and unfunded trade finance deals.