Alternative Financial Instruments To Riba Interest and Their Role In Distributing And Redistributing The Wealth in A Just Manner

Author: Magda Ismail A. Mohsin, Rubi Ahmad, Aishath Muneeza
Publisher: UM Press
ISBN: 9789674481825
Weight: 
Pages: 
Year: 2023
Price: RM73

The failure of the capitalist system in financing with zero interest created a huge gap between the rich and the poor. According to the World Bank statistics of 2012 on Global Issues, more than 80% of the world’s population live in countries where income inequality is very wide. As stated by the World Bank 20% of the poorest of the world’s population accounts for less than 2% of the global wealth whereas 20% of the richest account for almost 77% of the global wealth in 2008.

One of the main causes of this wealth inequality is the lending with interest which in turn increases the wealth of the minority rich and reduces the wealth of the mass. Such a situation encourages the authors to look at the alternative financial system which has been recommended in Islam and which provides many financial products that can help not only in reducing the gap between the rich and the poor but can promote economic growth in a just sustainable manner. The main objectives of this book are to comprehensively discuss Islamic financial products and Islamic socio-financial products using current practical cases besides highlighting their
economic and social impact in various countries.

Readers of this book will understand the impact of interest-based instruments in creating wealth inequality and how through Islamic financial products this gap will be reduced by providing current practical cases.