Islamic Banks and Their Role in Achieving Economic Development (Some Arab Islamic Banks as A Model for the Period 2006 – 2013)

• Post by: Muthanna mjdes
• October 11, 2022
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Sabah Rahim Mahdi *, Saad Majeed Abdul Ali Al-Janabi

Al-Muthanna University/ College of Administration and Economics

Abstract

The purpose of the establishment of Islamic banks is to face the challenges facing Muslims through their financial and investment dealings and their relationship with commercial banks. Most commercial transactions need to be deposited, withdrawn and bank securitized, and fear of falling into the no man’s land through interest transactions. The idea of ​​setting up Islamic banks was based on the principles of Islamic teachings and in recognition of the magnitude of the challenges facing the Islamic nation in its economic field. It was therefore necessary to find an effective mechanism to address these challenges through the formation of development banking institutions aimed at avoiding interest. Economic development and social progress of Islamic peoples and societies in accordance with the principles and principles of Islamic Shariah .To achieve this lofty goal, some banks have taken special care to finance productive projects and infrastructure projects of financial and economic feasibility through various means, such as capital participation, speculation, declining participation, leasing, sale, futures, Istisna’a, etc., in order to stimulate trade and economic development.

DOI:10.52113/6/2018-8-1/28-41