Islamic Finance in Europe: A Mixed-Methods Study of Cultural Adaptation, Identity, and Integration Among Muslim Diaspora Communities, Rony Azar, Dr Soula Kyriakou

Rony Azar and Dr Soula Kyriakou
International Executive School
Strasbourg
France

Purpose: This study examines how Muslim diaspora communities in Europe adapt their financial behavior to align with Islamic beliefs while navigating European banking systems.
Methodology: Mixed-methods research 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 prioritize cultural authenticity, while second-generation Muslims blend Islamic principles with conventional flexibility.
Value: First comprehensive mixed-methods analysis of Islamic finance adoption among European Muslim diaspora communities, revealing intergenerational differences in financial behaviour.
Research limitations/implications: Limited to four European countries; broader research needed across Europe and other Western regions.
Practical implications: Results indicate need for improved regulatory frameworks, enhanced product availability, and targeted financial education to bridge awareness-usage gaps.
Key Words: Islamic finance, Muslim diaspora, financial behavior, banking systems, intergenerational differences, and Europe.