Register/Login   ISSN: 2600-7975   eISSN:2550-1895   Frequency: Three times a year      


SCImago Journal & Country Rank

  • Ulrichs (
  • Focus (Journals and Conference Proceedings)
  • UiTM Institutional Repositories (ePrints)


Volume 22 No. 3, December 2023


Article History:
Received: 16 February 2023
Accepted: 24 October 2023
Available online: 01 December 2023


Impact of Islamic Financial Markets on Economic Growth: Evidence from the Middle East and Asia

Nur Hazimah Amran1, Wahida Ahmad1♣ and Catherine S F Ho2

1Arshad Ayub Graduate Business School, Universiti Teknologi MARA, Selangor, Malaysia 2Faculty of Business and Management, Universiti Teknologi MARA, Selangor, Malaysia


Globalization and integration of the global financial markets have yielded much volatility in economic activities and it is essential that emerging countries avoid contagious crises to ensure robust development. With the rapid progression in both conventional and Islamic financial markets, countries with dual financial systems have to uphold a stable and resilient financial market that could contribute to sustainable economic growth. This study aimed to investigate the contribution of Islamic financial markets towards economic development in selected Middle Eastern and Asian countries from 2008 to 2017. The study employed panel data analysis methodology on a balanced panel of seven countries and the finding reveals consistent results where both Islamic stock markets and the Islamic banking sector significantly and positively contributed to economic growth. Meanwhile, region significantly interacted in the relationship between Takaful and economic growth positively for Middle Eastern countries but not for Asia. Empirical evidence highlights the importance of the Islamic financial markets in stimulating a nation’s economic growth, which is especially vital for the stock and banking sectors. Further, Asian nations should also further expand and empower the Takaful industry to achieve a positive economic impact.

Keywords: Financial Markets, Economic Growth, Islamic Bank, Takaful, Islamic Stock Markets
Corresponding Author: Wahida Ahmad; Arshad Ayub Graduate Business School, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia; Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: +6019-3321069


Main Email :

Principal Contact
Prof. Dr. Jamaliah Said :


Accounting Research Institute (ARI)
Level 12, Menara SAAS 
Universiti Teknologi MARA (UiTM)
40450 Shah Alam
Selangor, MALAYSIA

Tel: +603 5544 4829   |   Fax : +603 5544 4992