Pandemic crisis, digitalization and social responsibility: an emerging role of Islamic economics and finance

Abstract

Islamic economics and finance derived its axioms from Shariah. Irrespective of the faith convictions, Islamic economics and finance has gained momentum in the world today. It is reported that by 2024, the global Islamic finance industry assets will reach USD$3.69 trillion and in 2019, it is estimated that Muslims have spent USD$2.02 trillion on halal sectors inspired by ethical consumption needs while it is anticipated that by 2024, this amount will reach to USD$2.4 trillion at a five-yaer cumulative annual growth rate of 3.1% (Dinar Standard, 2020). It is also forecasted that there will be 8% decrease in global Muslim spending in 2020 due to pandemic on sectors covered by report published by Dinar Standard (2020) which re food, pharmaceutical, cosmetics, fashion, travel and media/recreation sectors. It is also anticipated that except for travel sector, all the other sectors covered by Dinar Standard (2020) will return to pre-pandemic spends level by the end of 2021.