Towards Understanding the Structure of Islamic Economic System in Solving the Current Economics and Financial Crisis

Magda Ismail A. Mohsin
(International Center for Education in Islamic Finance INCEIF, the Global University of Islamic Finance, Kuala Lumpur, Malaysia)

Abstract: Islam is not just a religion of worship; it is a comprehensive discipline that includes all aspect of sciences including economics. It provides many institutions that have to function in parallel in order to meet a just and a welfare society for all. The current global economics and financial crises urged economists to search for alternative institutions to solve these crises. This brings in the question of whether the Islamic economic system is capable of solving such crises or not. The main objective of this paper is to present the different Islamic institutions within the structure of the Islamic economic system, and to show their roles in handling the current economics and financial crisis. This research uses both primary and secondary sources. Data collected from primary sources includes text from the Quran and ahadith from the Sunnah (saying of the Prophet (pbuh), while data collected from secondary sources includes books, articles, journals besides websites and e-books. The expected finding of this research is to give a comprehensive structure of the Islamic economic system, as provided in Quran and Sunnah. This in turn will open the door wider from more researchers to study and to examine the different institutions within the structure of the Islamic economic system in depth which God/Allah (swt) provided to serve all mankind in the best way.

Key words: economics; crises; Islamic financial institutions; remedies

JEL code: P4