Islamic Finance in Europe: A Mixed-Methods Study of Cultural Adaptation, Identity, and Integration Among Muslim Diaspora Communities, Rony Azar
Rony Azar
PhD Candidate
International Executive School (IES)
50 Rue Pertois, 67100 Strasbourg
France
ORCID: 0009-0000-5138-8533
Paper Type: Research
DOI: 10.47556/B.OUTLOOK2025.23.17
Received: 5 December 2025 / Revised: 10 December 2025 / Accepted: 11 December 2025 / Published: 30 December 2025
Purpose: This study examines how Muslim diaspora communities in Europe adapt their financial behaviour to align with Islamic beliefs while navigating European banking systems.
Methodology: A mixed-methods research was used, combining surveys (n=320) and interviews (n=20) across the UK, France, Germany, and the Netherlands.
Findings: While 78% of respondents were aware of Islamic banking products, only 42% actively used them. Primary barriers included limited availability (54%) and unclear regulations (47%). Islamic finance strengthens religious identity (65%) and supports economic participation (58%). First-generation immigrants prioritise cultural authenticity, while second-generation Muslims blend Islamic principles with conventional flexibility.
Value: This paper is the first comprehensive mixed-methods analysis of Islamic finance adoption among European Muslim diaspora communities, revealing intergenerational differences in financial behaviour.
Research limitations/implications: The research was limited to four European countries; broader research is therefore needed across Europe and other Western regions.
Practical implications: Results indicate a need for improved regulatory frameworks, enhanced product availability, and targeted financial education to bridge awareness-usage gaps.
Key Words: Islamic Finance; Muslim Diaspora; Financial Behaviour; Banking Systems; Intergenerational Differences; Europe.
Citation: Azar, R. (2025): Islamic Finance in Europe: A Mixed-Methods Study of Cultural Adaptation, Identity, and Integration among Muslim Diaspora Communities. In Ahmed, A. (Ed.): United Nations: What Next After 2030 Agenda and SDGs. World Sustainable Development Outlook 2025, Vol. 21, pp. 247-261. WASD: London, United Kingdom.
