Islamic finance in the United States: a booming sector despite challenges

Islamic finance, born in the 1960s, is increasingly attractive thanks to its universal ethical principles. In the United States, it has gradually established itself, benefiting from a favorable environment and political support. This alternative financial model, compliant with Sharia law, attracts both Muslim and non-Muslim communities, in particular thanks to sukuk (Islamic bonds), which make it possible to finance projects in the economic, social and educational fields.

The history of American Islamic finance dates back to the 1980s, when two West Coast institutions began offering investment funds aimed at Muslim communities. The sector saw significant growth in the 1990s and 2000s, alongside the increase in the Muslim population in the United States. Interest in this model increased significantly after the 2008 financial crisis, in response to demand for more ethical and transparent financial frameworks.

Today, approximately 43 U.S. institutions offer Shariah-compliant products, including LARIBA American Finance House and University Islamic Financial (UIF). Large players like JP Morgan and Standard Chartered have also launched into Islamic banking services. Internationally, organizations based in the United States, such as the IFC, USAID and the World Bank, facilitate the financing of projects via Islamic mechanisms in vulnerable regions.

Despite its potential, Islamic finance faces obstacles in the United States, particularly due to the lack of a specific regulatory framework. Islamic products, based on risk sharing and asset-backed financing, find it difficult to fit into regulations designed for traditional financial systems. Additionally, institutions must scrupulously adhere to Sharia principles, a challenge requiring specialist expertise and advice.

However, the growing demand for ethical financial solutions, fueled by the increase in the Muslim population — estimated at 6.2 million by 2030 — opens up promising prospects. Sharia-compliant indices, such as the S&P Dow Jones Islamic Market US Index and the MSCI USA Islamic Index, already make it possible to invest in US stocks in a structured and ethical manner.

Educational initiatives, such as those of the AlHuda Center, also help promote Islamic finance. These programs aim to strengthen the skills of professionals and raise awareness among the general public of the advantages of this financial model. With regulatory reforms, product diversification and increased awareness, Islamic finance could become a key segment of the U.S. financial landscape, providing solutions tailored to both Muslims and non-Muslims seeking an ethical alternative to the banking system. traditional.