Financing in the Islamic System and Sustainable Economic Development of Selected Islamic Countries

Sepideh Khavarinezhad*, Vahid Jafari-Sadeghi

*Corresponding author for this work

Research output: Unpublished contribution to conferenceUnpublished Conference Paperpeer-review

Abstract

Financial markets have the obligation to support the real economy has become the development and sustainable economic growth. Capital is an indispensable tool for economic growth and prosperity, which is accelerated through the financial markets, and Islamic finance tools have developed significantly in Islamic countries in recent years. Promoting macroeconomic objectives such as sustainability and achieving endogenous and viable economic growth are the purposes of all economic systems. Increasing growth of financial methods and development of these systems drives from this reality that the sustainable development of the financial system is an integral part of economic system development. Islamic financing has emerged in the world financial literature, intending to provide a new model for replacing conventional financial plans and providing financial, commercial and investment facilities and opportunities by the principles of Sharia. This system has been able to identify its various dimensions. Due to the particular benefits and advantages of Islamic financing, the issue of Islamic financing has become critical in the international arena. By assuming Islamic financial systems, it can be concluded that they do not permit the use of
current financial methods since usury is forbidden in Islam. So, they attempt to create Islamic financial instruments. As an Islamic and non-usury financial instrument, Sukuk has found a suitable position among Islamic governments and companies. Islamic financing has emerged in the world financial literature to provide a new model for replacing traditional and conventional financial systems and providing financial, commercial and investment facilities and opportunities under the principles of Sharia. The purpose of the present study is to investigate
the role of Islamic financing of Sukuk on the economic growth of Malaysia, Iran, Pakistan, Qatar, Bahrain, Turkey, Indonesia, UAE and Saudi Arabia; applying the panel data, will be analysed the variables affecting economic growth (government spending, gross capital formation, labour force, exports and Sukuk).
Original languageEnglish
Publication statusPublished - 15 Oct 2021
EventTurin Islamic Economic Forum - University of Turin, Turin, Italy
Duration: 13 Oct 202115 Oct 2021
Conference number: 5
https://www.tief.it/?lang=en

Forum

ForumTurin Islamic Economic Forum
Abbreviated titleTIEF
CountryItaly
CityTurin
Period13/10/2115/10/21
Internet address

Keywords

  • Financing
  • Islamic Financing
  • Economic Growth
  • Sustainable Development
  • Sukuk

Fingerprint

Dive into the research topics of 'Financing in the Islamic System and Sustainable Economic Development of Selected Islamic Countries'. Together they form a unique fingerprint.

Cite this