The new paradigm of Islamic corporate governance

Purpose The purpose of this paper is to examine the new paradigm of Islamic corporate governance (ICG) in an emerging area of Islamic finance. Design/methodology/approach The paper adopts an analytical approach to investigate the new executive and managerial roles that ICG is expected to play in the process of corporate financial decision making. Findings The authors argue that ICG is no longer expected to play the traditional supervisory and regulatory role within Islamic financial institutions. Indeed, the acuteness of competition, the observed failures of the Islamic finance industry, the unprecedented challenges, and the required ethical considerations levy as a new approach that improve the growth of the Islamic finance industry sustain its survival in the global financial world, and enhance the welfare of 25 percent of the world population who survived beyond all level of poverties. Originality/value The authors claim that ICG must be endowed with a multi-faceted, new paradigm for the purpose of improving the stakeholders' interests and reaching the best business practices of the Islamic finance industry to cater investors' need and the social well-being of the homeless and disadvantaged communities.