ISLAMIC ECONOMY RESTRICTIONS TO OVERCOME THE CURRENT FINANCIAL CRISIS

Abstract

This paper highlights the strengths of Islamic finance in the context of the current financial and economic crisis. And also, examines whether Islamic finance could help to provide an alternative approach to the problems that led to the crisis that would prevent the repetition of a similar crisis in the future. As a result of the global financial crisis and its effects on the world economy, there is an increasing awareness and exploration of more vigorous frameworks and types of financial tools and intermediations. The crisis was attributed to many causes, such as interest rates, mortgages, borrowing for fake institutions, ending with a disaster which made the disaster more virulent, and heading towards collapsing.