The Development of Islamic Finance in Tunisia after the Arab Spring: Does Political Islam Matter?

This study examines the impact of political transformation in Tunisia and the rise of Islamic political parties on people's perceptions toward developing the Islamic finance sector in the country. We assess the extent to which the future of Islamic finance in Tunisia could be related to political Islam or if political orientation could be detrimental to the development of the country's Islamic finance. Based on a survey distributed to 1,158 Tunisian citizens, we offer an insight into how political Islam has affected the development of Islamic finance in Tunisia. We find that: (1) political orientation does not appear to be a significant determinant of the acceptance of Islamic finance; (2) religious beliefs appear to be a significant determinant of the acceptance of Islamic finance; and (3) the future development of Islamic finance in Tunisia can be linked more precisely to the country's social transformation rather than the rise to power of Islamic political parties since the Arab Spring.