ABSTRACT
SWOT analysis is increasingly becoming significant and is being widely used in the private sector, the public sector, the not-for-profit sectors, and beyond. It equally extends its values and benefits to organizational leaders and policy makers. Yet there are hardly any studies on SWOT analysis related to the benchmark in the Islamic finance industry. The present chapter has adopted an exploratory research design. It uses a qualitative method in the form of critical literature survey, meta-analysis, and thematic analysis to examine the SWOT analysis of benchmark in the Islamic finance industry. Major findings from the study reveal that in using the present conventional benchmark, Islamic finance would avail the opportunities of reflecting the true costs of funds of the Islamic finance industry and incorporate its risk structures. In terms of threat, Islamic finance would continue to attract criticisms as it converges towards its conventional counterpart, and it will also be exposed to the risk of violating Sharī ͑ah law. On the other hand, the strength of using this benchmark lies in reducing search costs, increasing market participation, and bringing about better matching. The weaknesses are reflected in higher rates of Islamic finance charges by using this benchmark, which is also prone to manipulation. The chapter concludes with policy implications and a way forward for future research.
