The Islamic economy after COVID 

The biannual meeting of the SCIEF-Casa Árabe Islamic Finance Observatory in Spain was held on June 25, this time online, including the participation of Abdulla Mohammed Al Awar, CEO of the Dubai Islamic Economic Development Center (DIEDC).

At the meeting, the impact of the pandemic was analyzed, and that of the global economic crisis which it has produced on the Islamic Economy, above all in the sector of halal finance and industry.

Despite the negative impact held by the pandemic on the world of finance as a whole, Abdulla Mohammed Al Awar highlighted some of the initiatives being created through Islamic finance to channel funds towards the population sectors most affected by COVID. At the same time, the closure of bank branches and in-person activities has led to a qualitative leap forward in the process of online banking, in Islamic finance, as well, with users increasingly implementing technology to monitor financial activities. As for the halal industry, the halal agro-food industry’s results have been relatively positive, given the increase in exports of halal foods. In terms of tourism, the impact is expected to be temporary, though in the short term the recovery will occur mainly in the form of local and regional tourism, as in the UAE.