Implications for Islamic Finance Development in Finland: How Do Finnish Muslims Perceive Riba and Islamic Banking?

Islamic banking and finance (IBF) has gained significant attention in recent years, including in Finland where a growing Muslim community has created a demand for Islamic financial products. This research aims to explore the perceptions of Muslims in Finland towards riba and IBF and the implications for the development of IBF in Finland. The study employs survey research utilizing a questionnaire for a sample of Muslims living in Finland about the reasons for not taking usurious loans and their reluctance to pay interest, which affects significantly the Muslim community and leads to their financial exclusion, such as preventing them from owning a dwelling in Finland or investing their money in projects that follow their belief.

The results were exclusive and reflect the reality experienced by

the Muslim minority in Finland. The findings reveal that while Muslims in Finland are generally aware of the concept of riba and the importance of avoiding interest-based transactions, there is a lack of understanding of the broader principles of IBF. In addition to the interesting results observed, the non-existence of Islamic banking institutions in Finland makes this research unique because it highlights the challenges facing the development of IBF in Finland, including the lack of awareness and education about IBF, the lack of access to Islamic financial products, and regulatory and legal barriers.

The study concludes that there is a need for increased awareness and education about Islamic finance in Finland, as well as greater efforts to promote the development of a regulatory framework that is favorable to the growth of IBF, this study provides valuable insights into the perceptions of Muslims in Finland towards riba and IBF and the implications for the development of IBF in Finland.

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