Adoption of Islamic banking amongst Muslim accountants and lawyers in KwaZulu-Natal.

Abstract

Sub-Saharan Africa accounts for less than 2% of total Islamic Banking assets despite its 500 million Muslim population. As a consequence of low adoption in Africa, particularly in South Africa, there is a need to navigate this challenge and understand what drives the development of Islamic Banking in order to identify ways to stimulate its growth. Given the role and esteem of Muslim Accountants and Lawyers in the business sector of KwaZulu-Natal, this quantitative study aimed to determine the motivational factors for adopting Islamic Banking amongst Muslim Accountants and Lawyers in KwaZulu-Natal. A self-administered questionnaire was used, which contained specific questions relating to knowledge, perceptions and bank selection criteria. The study identified a lack of understanding and scepticism about the underlying principles of Islamic Banking. The original contribution of the study is the availability of a set of ranked factors that increase adoption of Islamic Banking. Further, the study addressed effective ways to bridge the education gap and promoted a collaboration between various stakeholders to find solutions to implement Islamic Banking in the ever-complex and dynamic business environment, whilst still adhering to the principles of Islam. The study identified the need for a single unified regulatory body and provided insights about its role and composition thus provides policy makers with useful information to inform policy formulation and implementation.