COVID-19:ISLAMIC SOCIAL FINANCE SUSTAINED THE ECONOMY?

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The coronavirus pandemic has shown us a new world with a new norm. 

As the epidemic overwhelms our bodies and societies, millions of people are witnessing untold misery and suffering.
 
The pandemic has forced us, rich and poor, 
to rethink almost every aspect of how we live while 
the scope of COVID19 is 
only just beginning to be felt. The UNDP reports that global human growth, a combination of education, health and standards of living will collapse for the first time in 2020.

To balance the resources in society and to avoid economic exploitation, Islamic finance was planned at the birth of Islam
. 
The comprehensive, sophisticated structure, also referred to as shari'ah compliant finance and economics only exist in Islam. 

Via wealth redistribution and equitable financial dealings, Islamic finance seeks to improve social justice. Islamic social finance forbid exploitative activities like:



> GHARAR:
contractual ambiguity,(financial deals with small print that could mean weaker parties are exploited).  


 > RIBA: interest (mainly selling money but also goods at a higher price than their worth)

>MAYSIR: financial speculation (investing at great risk in the hope that it will gain value)

Islamic finance is rooted equally in commercial and social dimensions.

Worldwide the Islamic banking and finance sector is massive. It was worth more than $2.4 trillion at the end of 2018, whilst zakat contributions are estimated to be between $200 billion and $1 trillion a year.

The Islamic social finance sector includes Islamic institutions based on:

Do you have ever wonder how Islamic Finance can be a great support during this pandemic? How it can help socially, economically and play an important role in SDG? Wait till the next update😉


    Location: Kamunting, Perak, Malaysia

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