Articles

Five measures are necessary for world peace and alleviating world poverty: a commitment to upholding the UN charter and its resolutions; ensuring the security and sovereignty of small states; the peaceful settlement of regional disputes; the upholding of human and democratic rights; and the progressive elimination of weapons of mass destruction. The economic priority of the new world order is to bridge the gap between rich and poor. Barriers to international trade, especially protectionism in developed nations, stymie the development of developing nations.

Islamic economics is presented differently from Western economics: whereas Westerners wrote books on theory, the Prophet Muhammad (SAW) and those around him lived by the Qur'an and were practical-minded.

Interest-free banking performance can be evaluated within two frameworks. The first one is in light of shari`a , for the only reason to develop an interest-free banking system is to act in line with

Around 100 Islamic financial institutions now exist worldwide. To understand the need for an Islamic banking system, it is necessary to look at

Among the reasons usually cited for the recent revival of

Islamic scholars nearly universally agree that riba encompasses bank interest and that the

Western ethical investing and Islamic banking, both value-oriented financial movements, gained popularity ten years ago due to disillusionment with the prevailing capitalist and communist systems. The number of ethical investment organizations has increased in the West. Simultaneously, Islamic banking has been established both in the

Distinguishing characteristics of Islamic banks include their commitment to shari`a and provisions for qard hasan. The thinking and philosophical ideas behind Islamic banking, such as earning only by permissible methods, distributive justice, the honorable status of labor, and freedom and property rights, are of note.

To transform the interest-based economic system to an Islamic one, a pricing mechanism must be developed to replace riba, and a stock exchange is needed to allocate resources equitably. Stock exchanges serve as financial intermediaries, determine the market value of firms, and offer numerous other services.

The most crucial financial institutions in developing nations are their commercial banks. Development occurs well if banks use individuals' savings productively. Typically, conventional banks lure deposits with interest rates. Islamic banks, by contrast, do not guarantee a fixed return. While a majority of the world's economists link savings behavior with the offer of positive interest rates, Islamic economists link savings with income. It has even been suggested that there are religious motivations for saving. Muslims are of three sorts.