Islamic theory of capital and interest

Interest has a certain role and some consequences on society. A radical change must occur in society to create an economy without any interest. The Islamic theory of capitalism is a realistic one because the production of capital is related to real output. This theory is also a comprehensive one, because of the great number of factors it takes into account, and an ethical one, because there must be equity and no exploitation. Islam's interest-free economy can meet both the material and the spiritual requirements the society's members. An Islamic economy will only work well when the desire for it exists in the community. The spirit of Islam should be promoted before the abolition of interest is imposed. Without interest, savings and investment levels would likely rise rather than fall because of the potential for higher profits. High interest rates play a role in the transition from prosperity to depression. Debt servicing difficulties plague the developing world. Interest als