Special Issue on COVID-19 Pandemic Crisis and Islamic Finance

Call for papers for: International Journal of Islamic and Middle Eastern Finance and Management

Guest Editors
M. Kabir Hassan, University of New Orleans, [email protected]
M. Ashraful Mobin, Managing Director, IFINTELL [email protected]

Submission Deadline: September 1, 2020
Publication Date: January 2021

Focus of the issue
The recent outbreak of COVID-19 shocked the world and kept a challenge in-front of the researchers to find an immediate solution. Solutions like social distancing policies are flattening the medical curve but steepening the recession curve and that is leading the financial system into a crisis (Baldwin & Mauro, 2020). Economic shutdown has created issues like demand and supply shocks that reverberate through the global economy. Manufacturing industries are cutting down production, employees are losing jobs and facing cash flow constraints. Governments are struggling to safeguard employment and livelihoods of the people to reduce the adverse impacts. All these effects turn it into a “Pandemic Crisis” (Guerrieri et. al., 2020). To fight the pandemic, many Governments have announced stimulus packages to channel the funds to people, so they have money to spend even if they aren’t working. However, the easiness of interest-based loans may create a debt trap for households and business firms in the long run, which will have a negative impact on the economic system (Cogan & Taylor, 2010; Freedman et al., 2010).

Islamic finance is an interest free system which is claimed to be responsible, ethical, sustainable and shock-preserving. As it is evident from Global Financial Crisis (GFC), Islamic finance has proven to be resilient because of the nature of its products and instruments which offers a balanced solution to channel the funds to end-users but not to increase the level of debt (Ahmed, 2010; Kayed & Hassan, 2011) Islamic Financial system has a wide range of products and instruments that can positively impact every group from bottom 20 (B20) end user to policy makers. While Islamic social finance solutions (i.e. waqf, zakat, Islamic microfinance) can help to ensure the ground level productivity, instruments like sovereign Sukuk can raise funds for governments (Hassan & Lewis, 2007; Mobin & Ahmad, 2016). When the innovation is costly, the rise of big data and artificial intelligence can help Islamic finance to reduce the mismatch and cost of transparency, tracing and tracking problems. Availability of a large volume of structured and unstructured data also allows the researchers to empirically test the conceptual Islamic financial solutions (Mohamed & Ali, 2018). However, since the GFC, there have been changes in the pattern of Islamic financial market as many innovations happened. One may question if the changes make the Islamic financial market less resilient. Is the Islamic financial market itself ready to fight the crisis? 

It's a call for Islamic finance researchers to look for solutions that will help the world to fight the pandemic crisis. This special issue of International Journal of Islamic and Middle Eastern Finance and Management calls for papers that address these challenges, in any area of Islamic finance, particularly in these topics (but not limited to): 

1.    Pandemic and Islamic Financial Markets 
2.    Flattening the Recession Curve: Role of Islamic Finance
3.    Islamic Social Finance solutions to fight against pandemic 
4.    Islamic Microfinance to Flatten both Medical and Recession Curve
5.    Islamic Banks and its connectedness with Counterparts during Pandemic 
6.    Investors Sentiments and Islamic Capital Market Performance during Pandemic
7.    COVID-19 Outbreak, Social Media and Islamic Market Sentiment
8.    Empirical Studies of Pandemic: Conventional Vs. Islamic 
9.    Non-linear and Dynamic Effect of Pandemic Crisis
10.    Contagion effect in Islamic financial system 
11.    Pandemic crisis Vs. Global Financial Crisis: Position of Islamic Finance
12.    Resilience and strength of Islamic Financial System
13.    Social Trust, Islamic Economic Values and Pandemic Crisis
14.    Role of Big Data to enable Islamic Finance to fight against pandemic
15.    Rise of alternative financial system and Position of Islamic Finance


Ahmed, A. (2010). Global financial crisis: an Islamic finance perspective. International Journal of Islamic and Middle Eastern Finance and Management.
Baldwin, R., & di Mauro, B. W. (2020). Mitigating the COVID economic crisis: Act fast and do whatever it takes. VoxEu. org, CEPR.
Cogan, J. F., & Taylor, J. B. (2010). What the government purchases multiplier actually multiplied in the 2009 stimulus package (No. w16505). National Bureau of Economic Research.
Freedman, C., Kumhof, M., Laxton, D., Muir, D., & Mursula, S. (2010). Global effects of fiscal stimulus during the crisis. Journal of monetary economics, 57(5), 506-526.
Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2020). Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages? (No. w26918). National Bureau of Economic Research.
Hassan, K., & Lewis, M. (Eds.). (2009). Handbook of Islamic banking. Edward Elgar Publishing.
Kayed, R. N., & Hassan, M. K. (2011). The global financial crisis and Islamic finance. Thunderbird International Business Review, 53(5), 551-564.
Mobin, M. A., & Ahmad, A. U. F. (2017). Achieving sustainable economic development through Islamic microfinance and the potential of a proposed two-tier mudarabah waqf business model. In Handbook of empirical research on Islam and economic life. Edward Elgar Publishing.
Mohamed, H., & Ali, H. (2018). Blockchain, Fintech, and Islamic finance: Building the future in the new Islamic digital economy. Walter de Gruyter GmbH & Co KG.