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Al-Qaradaghi: Islamic Banking as a Strategic Tool for Development and Strengthening the Islamic Economy

Al-Qaradaghi: Islamic Banking as a Strategic Tool for Development and Strengthening the Islamic Economy

 

On Friday evening, Dr. Ali Mohieddin Al-Qaradaghi, President of the International Union of Muslim Scholars, presented his insights on Islamic banking and its pivotal role in achieving comprehensive development during his lecture at the Third Scientific Forum organized by the Future Association for Da’wah, Culture, and Education in Mauritania.

Al-Qaradaghi emphasized that Islamic economics serves as the primary reference for Islamic banking, explaining that conventional interest-based banks operate according to the principles of capitalism, which rely on credit, debt, and personal solvency. In contrast, Islamic economics is based on tangible assets, real benefits, and fairness, ensuring justice and preventing exploitation.

Islamic Economics vs. Positivist Models

He critically addressed the concept of positivist economics, which neglects social dimensions and focuses on individual wealth and state dominance. He noted that interest-based profits, which historically reinforced capitalist control, still dominate today, despite their negative impact on societies and economies.

Al-Qaradaghi stressed that Islamic banking jurisprudence cannot fulfill its intended role unless it is grounded in its authentic reference—Islamic economics, with its integrated components: the science of Islamic economics, the economic system, economic policies, analysis, programs and projects, and transaction jurisprudence.

Unified Reference… Governing Principles

He highlighted that Western economics is based on five main principles: production, consumption, exchange, distribution, and redistribution. In contrast, Islamic economics is built on the principle of ownership, with all other elements deriving from it.

Al-Qaradaghi explained that the root of challenges facing Islamic banking lies in deviating from this reference, emphasizing that interest-based solutions do not resolve inflation and fail to achieve economic justice.

He noted that the core principles of Islamic economics include the elimination of injustice, uncertainty (gharar), and ignorance, equitable sharing of benefits, and the requirement of true ownership, ensuring balance between the individual and society.

He called for the development of Islamic banking through activating Sharia-compliant contracts, development-oriented Sukuk, and maximizing the role of Zakat in development, as well as leveraging digital opportunities, noting that technological advancement now allows the creation of “pocket Islamic banks.”

In conclusion, Al-Qaradaghi affirmed that Islamic economics is a comprehensive and adaptable system, with its foundations firmly rooted in the Qur’an and Sunnah, including approximately 360 economic terms in the Qur’an, along with economic and financial policies, and the law of supply and demand, which has been adopted by capitalist systems.

In the same forum, the President of the Future Association, Al-Mallamah Mohamed El-Hassane Ould Deddo, stated that the association serves as an umbrella to unify the efforts of Da’wah scholars from different intellectual orientations, bringing them together to successfully carry out the association’s mission of promoting Da’wah, educating, and enlightening society.

He emphasized that the association’s objectives focus on preserving the community’s faith and culture in the face of overwhelming globalization, which seeks to detach youth from their identity, as well as on education as the true path to national progress, stressing that uneducated individuals cannot fulfill the needs of the nation.

The scientific forum concluded with audience interventions and specialized questions regarding Islamic banking jurisprudence and the challenges of its implementation, which Dr. Al-Qaradaghi addressed at the end of the session.

(Source: Al-Ittihad)

 

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* للاطلاع على الترجمة الكاملة للخبر باللغة العربية، اضغط (هنا).


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