Role of Islamic Banks in Economic Development

MPRA Paper No. 6449

77 Pages Posted: 25 May 2007 Last revised: 23 Dec 2008

Shahid Saleem

Judge Business School, University of Cambridge

Date Written: December 25, 2007

Abstract

The purpose of this working paper is to give the real meaning of DEVELOPMENT from Islamic perspective. Most of Muslim countries are LDCs and using the religious and social ideology of Islam is very useful to establish institutions and to bring moral and ethical change for development in these countries. Islam appears to be the only dynamic religion and tells us about prevention of interest, similar to Christian and Jewish theologies. But at the same time gives a comprehensive setoff trade and financing modes, not easily and completely described in any other religion or social order. Even TFP, a modern concept for collective efficiency has been advised in Islam, shunning to self interest and individualism of materialistic economics. Some scholars of WEST consider use of Islamic banking more suitable for economic development, while others consider Islam as obstacle & threat to development of Muslim countries. We hope that the paper will be useful in this regard to provide another valuable theoretical dimension to this field of study.

Keywords: Islamic, Banking, Comparison, Pakistan, SHAHID, economic, development

JEL Classification: A12, E20, M21, N15, P40, Q01

Suggested Citation

Saleem, Shahid, Role of Islamic Banks in Economic Development (December 25, 2007). MPRA Paper No. 6449. Available at SSRN: https://ssrn.com/abstract=989055

Shahid Saleem (Contact Author)

Judge Business School, University of Cambridge ( email )

United Kingdom

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