Contributions of Islamic Finance to Supporting Economic Diversification in the State of Kuwait

Abstract

This study aimed to clarify economic diversification and its importance, Islamic finance and its mechanisms, and to highlight the role of Islamic finance in supporting the Kuwaiti economy. The study was divided into three sections: the first section explained economic diversification and its importance; the second section discussed Islamic finance, its sources, and its mechanisms in supporting the economy; and the third section examined the role of Islamic finance in supporting the Kuwaiti economy. The study adopted a descriptive-analytical approach by reviewing previous studies and annual reports of Kuwaiti Islamic finance institutions relevant to the topic. The study concluded with several findings, most notably that Islamic finance in Kuwait plays a significant role in economic diversification, supporting small, medium, and large enterprises, long-term investments, and real estate financing, thus contributing to reducing reliance on a single economic source.