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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

What is the ruling of Islamic Law on a fictitious marriage for the purpose of obtaining citizenship?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
There is no such thing in our noble sharīʿah as a "nominal" or "fictitious" marriage or divorce. Marriage and divorce are among the sacred ordinances of Allah, and it is not permissible to manipulate them or use them as a stratagem to obtain worldly gains.
The foundational purpose of a marriage contract is the permanence and continuity of the relationship between the spouses — to establish a family, and to bring forth righteous offspring. So sacred is this bond that Allah the Almighty Himself described it as a solemn covenant (mīthāq ghalīẓ), saying {what means}: "And if you wish to replace one wife with another and you have given one of them a great amount of wealth, do not take any of it back. Would you take it in injustice and manifest sin? And how could you take it while you have gone in unto each other and they have taken from you a solemn covenant?" [Al-Nisāʾ/ 20–21]
Accordingly, it is not permissible to resort to manipulation and deception in contracts that Allah, Mighty and Majestic, has described as a "solemn covenant" — all for the sake of material and worldly benefit. Marriage is built upon permanence and does not admit of a fixed time limit. If a time limit is stipulated in the contract, the contract is rendered invalid by the consensus of the jurists. Similarly, marriage is impermissible when there exists a mutual, concealed intention to limit its duration — even if no time limit is explicitly mentioned in the contract — for this constitutes a form of unlawful circumvention of the sharīʿah. This is to say nothing of the lying and deception that such conduct involves, the prohibition of which needs no elaboration. Lying, deception, and fraud for the purpose of obtaining worldly gains are among the gravest of sins.
If, however, the marriage contract is first concluded in a valid sharʿī manner and then registered civilly, it is sound and fully valid. And Allah the Almighty knows best.

What is the ruling of Islamic Law on eating or drinking during the circumambulation?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
It is disliked (makrūh) to eat or drink during the circumambulation (ṭawāf).
Shaykh al-Islām Imām al-Nawawī states in al-Majmūʿ: "It is disliked to eat or drink during ṭawāf, and the dislikedness of drinking is lighter. Neither of them, nor both together, invalidates the ṭawāf. Al-Shāfiʿī said: 'There is no objection to drinking water during ṭawāf, and I do not consider it sinful; however, I prefer that it be avoided, as refraining from it is more befitting in terms of proper conduct.' Among those who explicitly stated the dislikedness of eating and drinking, and that drinking is the lesser of the two, is the author of al-Ḥāwī."
If, however, a person is in genuine need of drinking, then there is no dislikedness in doing so. In any case, the ṭawāf itself remains valid. And Allah the Almighty knows best.

Is it acceptable to perform the Aqiqah for a male child by slaughtering and distributing the first sheep, and bringing the second one cooked from the restaurant?

 

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.

It is permissible to slaughter the first sheep with the intention of Aqiqah (the newborn's sacrificial offering) and distribute it entirely [uncooked], and to slaughter the second sheep and have it cooked at a restaurant to bring home for the household. However, it must be noted that it is obligatory to give some portion of the Aqiqah in charity to the poor, even if it is a small amount, though it is preferable to send the food cooked to them.

Buying a pre-cooked, ready-made sheep from a restaurant does not suffice as an Aqiqah. However, if an agreement is made with the restaurant to explicitly slaughter a sheep with the intention of Aqiqah for the newborn, and then cook it afterward, this is permissible.

In conclusion, slaughtering the sheep and distributing it with the intention of Aqiqah is permissible, and through it, the foundational prophetic tradition (Sunnah) is fulfilled. As for simply buying a cooked sheep from a restaurant that was not specifically slaughtered with the intention of Aqiqah, it will not count as such. Conversely, if the restaurant owner is commissioned (Wakala) to handle both the slaughtering and the cooking as an Aqiqah, it is valid. And Allah the Almighty knows best.

Is it permissible to participate in an Udhiyah?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
Regarding the sacrificial offering (Udhiyah), if it is a sheep or a goat, it only avails for one person. However, if it is a cow or a camel, it avails for seven people. It is permissible for the seven participants to have different intentions; for example, some may intend the sacrifice (Udhiyah), some the ’Aqiqah (sacrifice for a newborn), and others may simply intend to obtain meat.
 
It is stated in Hashiyat Qalyubi ‘ala Sharh al-Mahalli (Vol.4/P.256) and in Bushra al-Karim (p. 706):
 
"If one slaughters a camel or a cow on behalf of seven... it is permissible. Likewise, it is permissible if some of them intend their seventh for meat, and others intend their seventh for ’Aqiqah." And Allah the Almighty knows best.

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