The Intersection of Faith and Finance: Exploring the Impact of Islamic Finance on Financial Inclusion in Albania

This chapter explores the intersection of faith and finance, with a particular emphasis on how Islamic finance can enhance financial inclusion in Albania. In a world that is increasingly reflective of religious diversity and commercialization, Islamic finance provides a unique perspective that blends religious principles with economic activities. This research investigates how Islamic finance can contribute to increasing financial inclusion in Albania and the wider societal implications this may carry. We begin by analyzing the conflict between conventional finance and Islamic religious doctrine, highlighting how this conflict is leading to voluntary self-exclusion from conventional financial systems among devout Muslims. This concern holds significant relevance in Albania, a secular nation with a Muslim population of over 56%. Next, we turn our attention to Islamic finance as a potential remedy to this conflict. By harmonizing financial activities with religious principles and values, Islamic finance presents an alternative that may mitigate self-exclusion and promote greater financial inclusion. We then focus on the specifics of the Albanian context, studying the influence and impact of religious beliefs on financial decisions within the country. By using a mix of quantitative measurements and qualitative analysis, we aim to shed light on the potential of Islamic finance in Albania and the possible repercussions on the society and economy of including it. This research contributes to the understanding of Islamic finance in a secular context while also offering perspectives that could influence policy decisions and financial practices in Albania and beyond.