Articles

Development of the Islamic Economics
Author : Dr. Safwan Odaybat
Date Added : 02-02-2023

Development of the Islamic Economics

 

As a science, Islamic Economics witnessed an accelerating dynamic development in the second half of the twentieth century. Al-Azhar University was the first to include Islamic Economics as an independent scientific course in 1961, followed by King Abdulaziz University in 1964, and Omdurman University in Sudan in 1966 (Al-Wajiz in Islamic Economics by Dr. Mohammed Shawqi Al-Finjri, pp.5-7, and Contemporary Financial Transactions in Islamic Fiqh by Dr. Mohammed Osman Shabir, pp.257).

 

One of the recommendations of the seventh Muslim Scholars Conference held in Cairo in 1972 was the necessity of teaching the course, Islamic Economics, in all universities of the Muslim world. This recommendation constituted the first nucleus for the establishment of Islamic Economics Departments and the emergence of institutes specializing in Islamic Economics and Banking. This is especially after the First World Conference on Islamic Economics held in Mecca in 1976. (Al-Wajiz by Al-Finjri, pp.5-7).

 

The experience of the Islamic banks developed following the development of the Islamic Economics. The first experience of the Islamic Bank was (Meteghumar Experience in Upper Egypt) in 1963, which was established as a local savings bank operating under the provisions of Islamic Shari 'a (Zero-Interest Banks by Ahmed Abdel Aziz Al-Najjar, pp.67).

 

The Islamic Development Bank (IDB) and Dubai Islamic Bank (DIB) were established in 1975. Moreover, in 1977, three Islamic banks were established: Faisal Islamic Bank of Sudan, Faisal Islamic Bank of Egypt, Kuwait Finance House, Jordan Islamic Bank in 1978, and Islamic International Arab Bank in 1998.

 

After this long journey of giving and innovation and according to the latest global economic reports, Islamic banking-as part of the Islamic Economics-has achieved world records. Among the key findings of the Global Islamic Economy Reality Report of 2018 produced by Thomson Reuters in cooperation with Dinar Standard:

 

1. The size of the Islamic finance sector in 2017 was $2.438 billion, and is expected to reach $3.809 billion in 2023, with a growth rate of 7.7%.

 

2. The volume of significant investments in the Islamic economy- disclosed in private equity or venture capital funds for the years (2015-2018)-reaches $745 million.

 

3. A major trade movement in the Islamic economy lifestyle products with imports of up to $271.8 billion and exports of up to $210.5 billion. This is according to the Islamic countries data in the Organization of Islamic Cooperation (OIC) for the year 2017.

 

4. The size of the 2017 Islamic economy market reaches $2.107 billion and is expected to reach $3.007 billion in 2023.

 

5. The funding available for investment in the OIC countries reaches $4.9 trillion.

 

6. Islamic financing is undergoing change since digital banking and financial technology are in full swing in this sector reaching $12.6 million available for Islamic Fintech.

 

These recent results indicate the significant and continuous development in the finance and investment sector in various areas of the Islamic economy, including Islamic banks. This indicates the accelerated global trend towards the Islamic economy and the Islamic exchange in particular. Iran takes center stage in terms of Islamic finance market assets amounting to $578 billion; followed by Saudi Arabia then Malaysia. At the same time, we find a growing interest in the Islamic economy by European countries, America and East Asia. For example, Britain is establishing an Islamic Fintech Committee to take the lead position in this field in 2017. In France, Islamic transactions are taught in addition to introducing the specialization-Islamic Economics and Islamic Banks-in dozens of international universities in Europe, America and other countries.

 

 

 

 

 

 

 

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Summarized Fatawaa

I have concluded my marriage contract at a Sharia court; however, one day I was talking to my fiancée over the phone and she got on my nerves leading me to utter one divorce. This is knowing that I can`t tell my her father because he is very strict and will not accept that at all. What is the best course of action that I should pursue in this situation?

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.
When divorce takes place before the consummation of marriage it is called Ba`in divorce* (Minor irrevocable divoce), so your wife is considered unlawful to you until you conduct a new marriage contract and pay Mahr* , and you should visit the Iftaa` Department in order to know the correct Fatwa. And Allah The Almighty Knows Best.

* Minor irrevocable divorce Talaq Al-Ba'in Binona Soghra: It is a divorce where the husband cannot take his ex-wife back unless with her consent, conducting a new marriage contract and paying new bridal wealth Mahr.

* In Islam, a Mahr is the obligation, in the form of money or possessions paid by the groom, to the bride at the time of Islamic marriage. While the Mahr is often money, it can also be anything agreed upon by the bride such as jewelry, home goods, furniture, a dwelling or some land.

Is it permissible for a teacher to have one of the school meals originally allocated to students considering that there is plenty of them and they may spoil?

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
The Ministry of Education has the final say in this regard because it isn`t allowed to take from public funds save with the permission of the body in charge of spending from it. In fact, we have sent a letter to the Ministry concerning this issue and we are waiting for an answer. However, to prevent spoilage of the meals, they can be sold and the price kept in favor of the students or distributed amongst the students themselves. And Allah The Almighty Knows Best.

Is it permissible for a husband to sell his wife`s jewelry if he was in a hard up?

A woman`s jewelry and dowry are her own property, and it is forbidden for the husband to take either without obtaining her approval. However, it is desirable for the wife to support her husband through considering her jewelry a sort of documented debt on him.

I have a question regarding the deferred portion of the dowry (Mahr)*. Is the wife entitled to it only upon divorce or she can claim it even if divorce hasn`t taken place? Moreover, does she have the right to claim this portion after death of husband, even if he didn`t divorce her before that?

All perfect praise be to Allah the Lord of The Worlds. May His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
In the marriage contract, it is recorded that the deferred portion of the dowry is due upon divorce or death, whatever comes first. If divorce took place first then the woman is entitled to it and if the husband died this amount must be paid from his estate. On the other hand, if the woman died then the husband becomes liable for this portion and it becomes part of the woman`s estate. We advise every husband to give this portion to his wife while alive because it is a right of hers. And Allah The Almighty Knows Best.
* In Islam, a Mahr is the obligation, in the form of money or possessions paid by the groom, to the bride at the time of Islamic marriage (payment also has circumstances on when and how to pay). While the mahr is often money, it can also be anything agreed upon by the bride such as jewelry, home goods, furniture, a dwelling or some land. Mahr is typically specified in the marriage contract signed upon marriage.