In the public narrative around Islamic finance, we often talk about contracts, compliance, fatwas, and customer awareness. But one force quietly shapes everything from behind the scenes ownership. Who owns Islamic financial institutions, and what drives their decision-making? This is a question rarely addressed, yet it has more influence on the industry’s direction than many realize.
Owners whether they’re founders, institutional investors, politically connected figures, or state-backed entities carry the power to shape governance culture, executive appointments, strategic focus, and even how far or how fast an institution leans into its ethical identity. Their intent isn’t always documented, but it’s visible in how products are prioritized, how customers are engaged, and how Shariah boards are empowered or sidelined.
Of course, many owners mean well. They inject capital, absorb risk, and seek sustainability for the institutions they build. But intention is not always alignment. When profitability becomes the dominant filter, decisions that should center on justice, inclusion, and trust can drift toward short-term optics. Institutions become compliant but hollow. Ethical branding is maintained, but without substance.
And the irony? These institutions were created to challenge the ethical limitations of conventional finance not to adopt its internal culture behind a halal façade.
What’s even more surprising is how little public discourse addresses this. We hear little from scholars and regulators about the ethics of ownership and control. One would expect institutions like the Islamic Fiqh Academy a body with decades of thought leadership on Islamic commercial jurisprudence to have spoken more boldly by now on the moral responsibilities of those who own and influence Islamic finance. Perhaps they have but the conversation hasn’t reached the boardrooms where it’s most needed.
We must ask difficult but necessary questions:
1. Should there be clearer standards for ethical ownership in Islamic finance?
2. Should owners be held to more than capital adequacy perhaps a kind of moral adequacy too?
3. How do we distinguish between investors who believe in the mission and those who merely see a halal market opportunity?
Because ultimately, if the owners aren’t aligned with the purpose of Islamic finance, no amount of Shariah structuring will protect its credibility.
This is not a criticism it’s a call for alignment. Islamic finance cannot evolve meaningfully unless its stewards see themselves as more than shareholders. They are trustees of a system that claims to serve God, society, and justice.
Ownership in this space is not just power. It’s a trust.
My opinion please.
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