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 mixed (halal and haram) money, and I want to purify it. My father is poor, and I want him, my mother, and my mother-in-law to perform Hajj, along with myself and my wife, as they need care due to their old age. Is it permissible to use this money for Hajj, or what should I do with it? Please advise.
 
 
 
 
 

If you knew the exact amount of unlawful money, then you should give as a charity, and if didn't then try to figure out the closest amount in order to give it as a charity. 
As for performing Hajj, perform it by using your lawful money. May Allah Bless you for being dutiful to your parents and your mother in law and for your attempt to serve them, And Allah Knows Best.

Is it lawful or unlawful to take payment of key money?

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.
If the lease contract has expired and the lessor refrained from renewing it, then the tenant is obliged to leave the property for nothing. And Allah The Almighty Knows Best.

Is it permissible to fast on behalf of the dead who died owing missed fast to make up?

His relative should fast on his behalf, and it is permissible for the guardians to give permission to non-relatives of the dead to fast on his behalf as well. And Allah Knows Best.

A woman didn't fufill fasting of the month of Ramadan two years ago, due to pregnancy and breastfeeding, at the time being she is making up the missed Ramadan. What is the ruling of Sharia? And what is due on her? 

Whosoever break the fast during Ramadan or didn't fast at all due to health concerns, is obliged to make up the missed fasts whenever she could so long as making up missed Ramadan didn't extend  to the coming one, and if next one arrived without fulling fasting the missed one, the ransom is 60 grams for each missed day (Equals 60 piasters to one Dinar for each day). And Allah The Almighty Knows Best.