Functional integration among Islamic financial institutions - Concepts and foundations

Abstract

The study aims to clarify the concept of functional integration among Islamic financial institutions by explaining the nature of these institutions, highlighting their main objectives, illustrating the mechanisms of functional integration between them, and identifying the key foundations on which this integration is based, as well as the main challenges it faces. The study concluded with several findings, the most important of which is that functional integration among Islamic financial institutions represents a cooperative relationship among these entities. They seek to achieve common objectives through their functions within an environment that adheres to the principles of Islamic law. This relationship occurs in a parallel and synchronized manner, creating harmony in their transactions, thereby forming a cohesive cooperative network as a single, coordinated unit. This integration operates through a specific mechanism and is based on various foundations, including Sharia, economic, and legal principles. It also faces several challenges, the most significant of which are differences in legislation between countries, inconsistencies among Sharia boards, and the variation in Sharia standards.