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The Fourth Market Theory and the Paths to Differentiation in the Islamic Finance Industry

Both detractors and proponents agree on the necessity of a deep reform of Islamic finance covering its business models, financial mechanisms, economic rules and marketing approach. Indeed, Islamic finance is supposed to differentiate itself from conventional finance and bring real economic and social benefit for human societies while that Sharīʿah principles are expected to guide this differentiation and not serve as a simple marketing argument.

The book presents a new perspective to understand and analyse the main strategic challenges related to the introduction of Islamic finance and the implementation of its business models. The insights are based on research studies and consulting assignments conducted by the author in various markets with different maturity levels.

In this book, the author introduces new concepts such as the Fourth Market theory, incumbency protection and neutrality trap phenomena. These concepts shed light on the reasons explaining why Islamic financial institutions are imitating conventional financial institutions.
Finally, the book addresses six topics considered the main pillars of differentiation according to the author: economic rules for pricing business model review, financial inclusion, financial literacy, FinTech and sustainability.