ISLAMIC MODEL OF POLITICAL ECONOMY AND FINANCE AND CONTEMPORARY TRENDS OF FINANCIAL ENGAGEMENTS FROM HISTORICAL POLICY MANAGEMENT

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Published: Jun 25, 2023
Keywords:
Islamic finance Islamic economics Shariah interest-free banking sukuk Islamic banking

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KHATIB AHMAD KHAN, HAFIZ TAHIR ISLAM, SYED SHAMEEL AHMED QUADRI, MUHAMMAD SARWAR, SUMMER ASLAM, MUHAMMAD AYYOUB,

Abstract

This research article examines the Islamic model of economics and finance, elucidating its core principles and examining its applicability in modern financial transactions. Islamic finance is based on the principles of Islamic law, also known as Shariah, and presents a distinctive viewpoint that harmonizes economic endeavors with moral principles. This article provides an analysis of the fundamental principles that underpin Islamic finance, including the prohibition of interest (riba), the practise of profit and loss sharing (PLS), and the concept of ethical investment. Moreover, this study examines the prevailing patterns and methodologies in Islamic finance, encompassing sukuk (also known as Islamic bonds), Islamic banking, and Islamic microfinance. This study underscores the expansion and widespread recognition of Islamic finance, with a particular emphasis on its capacity to promote economic growth and ensure financial stability. In recent years, there has been a notable increase in attention and prominence given to the Islamic model of economics and finance. This distinctive financial system is based on Islamic principles and presents an alternative framework to conventional finance, with a particular emphasis on ethical, social, and religious values. With the continuous evolution of the global financial landscape, there has been an increasing scholarly interest in comprehending the fundamental principles of Islamic finance and its current trends in financial transactions. This article examines the fundamental principles of the Islamic model of economics and finance, as well as investigates its present-day applications and emerging trends.

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Vol. 11 No. 4 (2023)
Section
Articles
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Author Biography

KHATIB AHMAD KHAN, HAFIZ TAHIR ISLAM, SYED SHAMEEL AHMED QUADRI, MUHAMMAD SARWAR, SUMMER ASLAM, MUHAMMAD AYYOUB,

1KHATIB AHMAD KHAN, 2DR. HAFIZ TAHIR ISLAM,3DR. SYED SHAMEEL AHMED QUADRI, 4DR. MUHAMMAD SARWAR, 5DR. SUMMER ASLAM,6DR. MUHAMMAD AYYOUB,

1School of Commerce and Management Studies, Sunrise University, Alwar, Rajasthan, India

2Assistant Professor, Department of Islamic Thought, History, and Culture, Allama Iqbal Open University, Islamabad, Pakistan

3Assistant Professor, Political Science, University of Karachi

4Assistant Professor, University of Veterinary and Animal Sciences Lahore, Pakistan

5Assistant Professor, Management Sciences, Superior University

6Assistant Professor, Department of Economics, University of Sahiwal

 

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