Islamic financial system, an effective approach to economics in Islamic governance

Subject Areas : Islamic governance

Mohammad Reza Radfar ¹ , Mansoureh Aligholi ²

1 - Department of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Business Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

Received: 2022-02-18 Accepted : 2022-05-29 Published : 2022-03-21

Keywords: Financial Markets, Islamic finance, Holy Sharia, Islamic financing instruments,

Abstract :

Islamic finance includes all operations, services, as well as transactions that take place in the financial markets and are in accordance with the principles, rules and laws of Islam and the Holy Sharia. In the past, Islamic financing instruments may not have received much attention, but in recent years, special attention has been paid to the Islamic financial system, and not only Muslim countries, but also non-Muslim countries have used this efficient system, so that as predicted, The expansion of the Islamic financial market by 2024 will reach more than 3.5 trillion US dollars. The purpose of this study is a meticulous and accurate analysis of the concepts and principles of the Islamic financial system; hence, this research is an applied research of descriptive-analytical type. Therefore, in this study, the Islamic financial system is described as an efficient financial system based on Islam and holy Sharia and a dynamic solution for the economy in today's turbulent world.