The paper identifies and interprets key patterns in the development of global Islamic FinTech over 2020–2024. The relevance of the topic stems from the shift of Islamic FinTech from a collection of digital projects to a distinct segment of the global financial ecosystem, where growth constraints are increasingly institutional: access to growth capital, regulatory compliance, the replicability of Shariah governance, and the ability to scale demand amid limited customer financial literacy. The study aims to provide a quantitative description of market dynamics and ecosystem structure and to explain the observed shifts through an industry-maturation perspective. The empirical base is compiled from the Global Islamic Fintech Report series. The analysis relies on comparable indicators of market size and growth expectations, the number of Islamic FinTech firms, country concentration (share of the top ten countries by number of firms), vertical concentration (share of the top five product verticals), product and regional distribution of firms, and the ranking of growth hurdles and enablers reported in industry surveys. Methods include comparative trend analysis, normalised measures such as the “forecast multiplier” (forecast market size relative to the current estimate), and an author-defined “core verticals” metric capturing the combined share of Alternative Finance, Wealth Management and Payments in the total firm population. The results demonstrate a strong expansion of market size from USD 49 billion to USD 198 billion, while projected CAGR decreases from 21% to 11.5%. This pattern is interpreted as institutionalisation: scaling increasingly depends not only on technology but also on predictable compliance regimes and governance infrastructure. Ecosystem concentration remains high and multi-layered. By firms, the top ten countries consistently account for 79–82% of the global Islamic FinTech population; by market size, the top ten markets represent roughly 91–93% of the total. The product architecture becomes more consolidated: the top five verticals stabilise around a 72% share, and the share of the core verticals rises from 41.9% to 51.2%, indicating that a growing portion of the ecosystem clusters around the most scalable directions. Regionally, the MENA-GCC cluster strengthens and becomes the largest by number of firms. The contribution of the study is a unified, comparable empirical framework that links market expectations, two-level concentration and product-structure consolidation, and a quantitative core-verticals metric that captures structural shifts without reducing the analysis to descriptive reporting.

Keywords: Islamic FinTech, Islamic finance, Sharia compliance, alternative finance, wealth management, payments, regulatory compliance, financial literacy.

JEL Classification: F15, Z12

For citation
Tashtamirov M.R. The Evolution of Global Islamic Fintech: Market Dynamics, Concentration and Consolidation of the Product Structure. Islamic Finance, 2025, vol. 1, no. 1, pp. 5–21. https://doi.org/10.65324/if001

This publication is devoted to Shariah expertise and Shariah supervision as the basic element of Islamic finance. The author, after a brief description of the essence of the Islamic financial model, explores the mechanism of Shariah control, Shariah expertise and the institution of Shariah control itself, as a mandatory part of Islamic finance, analyzes the current state of Shariah expertise in the world, the problems of the formation of Shariah control in Russia, coming to the conclusion on how the institution of Shariah control will be properly formed and how stable and durable Shariah standards will be, covering not only the Islamic financial instruments themselves, but also the legal basis of operations, contracts, regulations, corporate ethics and other important aspects, will depend on the real progress of the development of Islamic finance in Russia. The paper also provides a forecast for the development of this area, which is still unexplored and little known outside the expert community in Russia as country that only forms the Islamic financial sector.

Keywords: Islamic finance, partnership financing, Shariah audit, Shariah standards, Shariah expertise, Shariah regulation, dual financial system.

JEL Classification: F15, Z12

For citation
Zaripov I.A. The Shariah control system as a basic element of the Islamic financial model. Islamic Finance, 2025, vol. 1, no. 1, pp. 22–37. https://doi.org/10.65324/if002

Islamic banking is a segment of the financial industry that promotes the elimination of interest and speculative transactions, increased trust in financial institutions, prudent business practices, financial stability, and more. One of the liquidity management tools actively used by Islamic banks is the organized tawarruq transaction. This article examines the revolution of the tawarruq transaction, its spread within classical fiqh, and its transformation into a modern banking product — organized tawarruq. It analyzes the fundamental differences between the traditional form, recognized by most madhhabs and permissible under certain conditions, and the organized faction, which raises objections under Shariah. Particular attention is paid to four key issues with the legitimacy of organized tawarruq: the uncertainty of commodity identification on commodity exchanges, the difficulty of securing the transfer of ownership and risk, the lack of physical delivery of the commodity, and the problem of “dual agency,” where one party simultaneously represents the interests of the seller and the buyer. The article also examines the structural scheme of reverse tawarruq (reverse murabaha), used in the United States to provide clients with general financing and fixed-income deposits.
Keywords: Islamic banking, Islamic bank, Islamic law, purchase and sale, tawarruq, Islamic finance.

JEL Classification: F15, Z12

For citation
Tenberga I., Chokayev B.V. Tawarruq transaction and its application by Islamic banks to maintain liquidity. Islamic Finance, 2025, vol. 1, no. 1, pp. 38–44. https://doi.org/10.65324/if003

In light of the ongoing experiment in Islamic (Partnership) financing in the Russian Federation, this paper is devoted to the analysis of the experience of post-Soviet countries in Islamic leasing (Ijarah) financing. We identify the fundamental differences between Islamic leasing and its conventional analogue, which include i) the absence of interest (riba); ii) risk-sharing associated with the ownership and use of the leased property; iii) belonging to the type of real contracts; iv) purposefulness; v) transfer of ownership of the leased property on the basis of a separate agreement; vi) absence of penalties and fines. We examine the experience of post-Soviet countries of Central Asia and the Caucasus in the organization and development of Islamic leasing companies. Some of them are founded with the participation of the Islamic Development Bank. Using the example of Islamic banks and microfinance companies, it is shown that Ijarah is a popular and competitive instrument for financing small and medium businesses in the post-Soviet region. Particular attention was made of the practices of Russian companies in the development of Islamic leasing in the Republic of Tatarstan. In the absence of government support, potential niches for Islamic leasing in the Russian market are proposed. These include: i) Islamic leasing of agricultural machinery through the expansion of relevant brands from the EAEU and OIC countries; ii) the introduction of new leasing assets to the market by further unlocking the export potential of small and medium-sized businesses from post-Soviet countries; iii) Islamic leasing of cars, trucks, construction machinery, and equipment from the EAEU and OIC countries; iv) Islamic real estate leasing; v) Islamic leasing of private vehicles. Our research results will be useful for market participants, policymakers, and the regulator itself, as paper reveals important details designed to assist in the development of the Islamic financial sector. Furthermore, our findings and assessments can be used in educational processes as a reference for the emerging experience of Islamic (Partnership) financing in the Russian Federation.

Keywords: Islamic finance, partnership finance, leasing, Islamic leasing, Ijara.

The study was carried out within the framework of the state assignment of the Ufa Federal Research Center of the Russian Academy of Sciences No. 075-00571-25-00 for 2025 and for the planning period 2026–2027.

JEL Classification: F15, Z12

For citation
Nagimova A.Z. Experience of Islamic Leasing (Ijara) Financing in the Post-Soviet Countries. Islamic Finance, 2025, vol. 1, no. 1, pp. 45–50. https://doi.org/10.65324/if004

The aim of the study is to analyze the current state, key trends, and challenges in the development of Islamic finance in a global context to identify a promising research agenda. The study was conducted through a systematic review of the scientific literature in accordance with the PRISMA standard. The search was conducted in Scopus and Web of Science for the period 2015–2025, with the additional inclusion of fundamental works. The final sample consisted of 93 academic publications. The analysis was conducted using thematic content analysis. It was established that the global Islamic finance market is demonstrating sustainable growth, and four key modern trends were identified: digital transformation (sukuk tokenization, blockchain platforms); convergence with the ESG agenda and the development of the «green» sukuk market; harmonization of Sharia standards and the regulatory environment; and expansion of the geographic presence, including non-Muslim jurisdictions. The study also systematizes the main challenges: underdevelopment of capital markets, institutional differences, shortage of qualified personnel, and ethical and methodological criticism of the dominance of debt instruments (murabaha).
Keywords: Islamic finance, Islamic banking, partnership financing.

The study was carried out within the framework of the state assignment of the Ufa Federal Research Center of the Russian Academy of Sciences No. 075-00576-26-00 for 2025 and for the planning period of 2026 and 2027.

JEL Classification: F15, Z12

For citation
Nusratullin I.V. Islamic Finance in a Turbulent Era: A Review of Current Trends, Challenges, and Future Research Directions. Islamic Finance, 2025, vol. 1, no. 1, pp. 51–61. https://doi.org/10.65324/if005

The purpose of the article is to identify new knowledge gained in the Russian-speaking segment of science on the subject of Islamic finance in 2024. The relevance of the goal is caused by the implementation of a Partnership (Islamic) finance in Russia: there has been an increase in the number of publications on this topic since 2022. To achieve this goal, a review of scientific articles published in the RSCI library was conducted. A list of 49 articles has been identified that form the scientific foundation of 2024 on this topic. The review of articles includes formal and substantive parts. Based on the results of the literature review, the following conclusions and observations can be formulated: a) the topic of Islamic finance is relevant, interest in it is growing and will continue to grow in the coming years; b) some of the articles on Islamic finance have been published in highly-rated journals; c) the topic raised in the papers adequately reflect the state of affairs with the development of the Islamic finance industry both in Russia and in the world as a whole; d) there is a connection between the problems of the Islamic finance industry and the conclusions of the authors; e) the increase in knowledge on the subject of Islamic finance in 2024 in the Russian-speaking segment of science can be assessed based on the number and quality of published papers, as well as the general level of development of Islamic finance in Russia, as quite significant.

Keywords: literature review, Islamic finance, partnership finance, research papers, knowledge growth.

JEL Classification: G10, G20

For citation
Iandiev M.I. On the growth of knowledge in the field of Islamic finance in 2024: a review of Russian-language scientific literature. Islamic Finance, 2025, vol. 1, no. 1, pp. 62–72. https://doi.org/10.65324/if006