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.

 

 

 

 

 

 

 

Article Number [ Previous | Next ]

Read for Author




Comments


Captcha


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.




Summarized Fatawaa

Is it permissible for one to shake hands with his uncle`s daughter?

No, it isn`t because he is a non-Mahram (Marriageable) to her.

A person bought a device through a usurious bank, and receives income from it every month after paying the bank for the price. Now the person regrets it, what should he do now?

This person has fallen into what is forbidden due to dealing with usury. He must repent sincerely, and whoever repents, Allah Will Accept their repentance. As for the device, there is no need to sell it. And Allah Knows Best

Is it permissible for the woman who is observing Iddah after her husband`s death to sit with her daughter`s suitor, although their marriage contract hasn`t been concluded yet?

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.
A suitor who hasn`t concluded the marriage contract isn`t a Mahram*, so he must be treated as such. And Allah The Almighty Knows Best.
* The period a woman must observe after the death of her husband or after a divorce, during which she may not marry another man.
* In Islam, a mahram is a member of one's family with whom marriage would be considered haram, concealment purdah, or concealment of the body with hijab, is not obligatory; and with whom, if he is an adult male, she may be escorted during a journey, although an escort may not be obligatory.

Is Lease-to-own through Islamic Bank Permissible?

Lease-to-own is a controversial issue among  contemporary Muslim scholars; we (Iftaa Dept.) advise you and in order to be on the safe side to conclude this sale transaction through Murabaha contract. And Allah Knows Best.