Islamic approach to interest-free banking

Capital should flow in an Islamic economy as blood flows in the human body. Funds should go where they are needed. With the domination of Muslim lands by Westerners came the idea that interest-free banking has impossible consequences on an economy. Although it is claimed that interest is crucial in promoting savings and investment, in controlled economies (and controls are in place nearly everywhere) interest is not as important as it is in totally free systems. If riba, which the qur'an bans, were removed from the system, investment would rise because of the possibility of higher returns. Bankers would be more involved with their clients' businesses in an interest-free setup; thus business may be given a spark. The indebted situation of Third World nations resembles that of some pre-Islamic tribes. The conventional economic system increases the gap between wealthy countries and poor ones. With all the money from oil revenue in the Islamic world, it makes no sense that Muslim