This study examines how Muslim diaspora communities in Europe adapt their financial behaviour to align with Islamic beliefs while navigating European banking systems.
A mixed-methods research was used, combining surveys (n=320) and interviews (n=20) across the UK, France, Germany, and the Netherlands.
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.
This paper is the first comprehensive mixed-methods analysis of Islamic finance adoption among European Muslim diaspora communities, revealing intergenerational differences in financial behaviour.
The research was limited to four European countries; broader research is therefore needed across Europe and other Western regions.
Results indicate a need for improved regulatory frameworks, enhanced product availability, and targeted financial education to bridge awareness-usage gaps.
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.
