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Development of the Islamic Economics
Author : Dr. Safwan Odaybat
Date Added : 02-02-2023

Development of the Islamic Economics

 

As a science, Islamic Economics witnessed an accelerating dynamic development in the second half of the twentieth century. Al-Azhar University was the first to include Islamic Economics as an independent scientific course in 1961, followed by King Abdulaziz University in 1964, and Omdurman University in Sudan in 1966 (Al-Wajiz in Islamic Economics by Dr. Mohammed Shawqi Al-Finjri, pp.5-7, and Contemporary Financial Transactions in Islamic Fiqh by Dr. Mohammed Osman Shabir, pp.257).

 

One of the recommendations of the seventh Muslim Scholars Conference held in Cairo in 1972 was the necessity of teaching the course, Islamic Economics, in all universities of the Muslim world. This recommendation constituted the first nucleus for the establishment of Islamic Economics Departments and the emergence of institutes specializing in Islamic Economics and Banking. This is especially after the First World Conference on Islamic Economics held in Mecca in 1976. (Al-Wajiz by Al-Finjri, pp.5-7).

 

The experience of the Islamic banks developed following the development of the Islamic Economics. The first experience of the Islamic Bank was (Meteghumar Experience in Upper Egypt) in 1963, which was established as a local savings bank operating under the provisions of Islamic Shari 'a (Zero-Interest Banks by Ahmed Abdel Aziz Al-Najjar, pp.67).

 

The Islamic Development Bank (IDB) and Dubai Islamic Bank (DIB) were established in 1975. Moreover, in 1977, three Islamic banks were established: Faisal Islamic Bank of Sudan, Faisal Islamic Bank of Egypt, Kuwait Finance House, Jordan Islamic Bank in 1978, and Islamic International Arab Bank in 1998.

 

After this long journey of giving and innovation and according to the latest global economic reports, Islamic banking-as part of the Islamic Economics-has achieved world records. Among the key findings of the Global Islamic Economy Reality Report of 2018 produced by Thomson Reuters in cooperation with Dinar Standard:

 

1. The size of the Islamic finance sector in 2017 was $2.438 billion, and is expected to reach $3.809 billion in 2023, with a growth rate of 7.7%.

 

2. The volume of significant investments in the Islamic economy- disclosed in private equity or venture capital funds for the years (2015-2018)-reaches $745 million.

 

3. A major trade movement in the Islamic economy lifestyle products with imports of up to $271.8 billion and exports of up to $210.5 billion. This is according to the Islamic countries data in the Organization of Islamic Cooperation (OIC) for the year 2017.

 

4. The size of the 2017 Islamic economy market reaches $2.107 billion and is expected to reach $3.007 billion in 2023.

 

5. The funding available for investment in the OIC countries reaches $4.9 trillion.

 

6. Islamic financing is undergoing change since digital banking and financial technology are in full swing in this sector reaching $12.6 million available for Islamic Fintech.

 

These recent results indicate the significant and continuous development in the finance and investment sector in various areas of the Islamic economy, including Islamic banks. This indicates the accelerated global trend towards the Islamic economy and the Islamic exchange in particular. Iran takes center stage in terms of Islamic finance market assets amounting to $578 billion; followed by Saudi Arabia then Malaysia. At the same time, we find a growing interest in the Islamic economy by European countries, America and East Asia. For example, Britain is establishing an Islamic Fintech Committee to take the lead position in this field in 2017. In France, Islamic transactions are taught in addition to introducing the specialization-Islamic Economics and Islamic Banks-in dozens of international universities in Europe, America and other countries.

 

 

 

 

 

 

 

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Summarized Fatawaa

Is it a condition that one should offer two sacrifices for a male newborn?

It is desirable to offer two sheep for a male newborn, and one for a female newborn. Offering one sheep for the male newborn is also permissible as it observes the Prophet`s Sunnah in this regard.

What is the ruling on waiving a debt owed by a debtor and counting it toward zakāh?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
Waiving a debt owed by a debtor, with the intention of counting it toward zakāh, does not fulfill the zakāh obligation. Rather, it constitutes an ordinary act of charity, for which Allah rewards the giver generously — since one of the conditions for the validity of zakāh is that the person paying it must form the intention of zakāh at the actual moment the wealth is paid out. In this case, the debt has already been established as a standing obligation upon the borrower, so it is not valid to simply redirect the intention toward zakāh after the fact.
It is preferable, instead, for the creditor to first collect the debt from the debtor, and then return to him the amount of money he is required to pay as zakāh — or a portion of it — if the debtor happens to fall under one of the eight categories that Allah, the Exalted, has commanded be given from zakāh.
It is stated in ‘Umdat as-Sālik, from the books of the Shāfi‘ī school: "If someone gives [money] to a poor person, stipulating that the recipient return it to him in payment of a debt owed to him, or says, 'I am making what you owe me into zakāh, so take it [as such]' — this is not valid. But if he gives it to him with the [unstated] intention that the recipient will use it to repay him, or says, 'Repay what you owe me, so that I may [then separately] give it to you as zakāh,' or the debtor himself says, 'Give it to me, so that I may [then] repay you with it' — this is valid, and there is no binding obligation for the recipient to actually fulfill this [informal understanding]." And Allah, the Exalted, knows best.

What is the ruling on wiping the white area behind the ears instead of wiping the head?

The obligation in ablution is to wipe some of the head; it is not a condition to wipe all of it. Wiping the white area behind the ears suffices for that. And Allah the almighty knows best.

What is the ruling on praying seated due to severe obesity, given that I experience hardship in performing the prayer — especially when rising from the ground after sujūd to perform the next rak‘ah?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
Standing, when one is able to do so, is a pillar of the prayer. However, whoever would experience severe, intolerable hardship, or fears harm to himself or to a limb due to obesity, or finds that standing causes him to lose his khushū‘ (humble focus and concentration) in prayer, then there is no objection to his praying seated on a chair or on the ground, performing rukū‘ (bowing) and sujūd (prostration) through gesture — provided that the gesture for sujūd is made lower than that for rukū‘. Whoever is able, at any point, to properly perform any one of these pillars, is obligated to perform it in full; for omitting it is a concession that applies only in cases of genuine inability. The Prophet ﷺ said: "When I command you to do something, do of it whatever you are able." (Related by al-Bukhārī). As the scholars of fiqh have established: what remains possible is not waived on account of what is difficult.
The criterion for determining genuine inability, as chosen by Imam al-Ḥaramayn al-Juwaynī (raḥimahullāh), is that the worshipper experiences hardship that causes him to lose his khushū‘.
As for voluntary (nafl) prayer, there is no objection to performing it while seated, even if one is able to stand. However, rukū‘ and sujūd must still be performed [in their proper physical form] by anyone who is able to do so. And Allah, the Exalted, knows best.

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