Islamic Economy Fiqh Forum: Economic development of Islamic Fiqh depends on developing the tools of Islamic jurisprudence
The corridors of Islamic Economy Fiqh Forum witnessed generic consensus among the conference members for the need to develop the tools of Islamic jurisprudence that is consistent with the vision of the new economic era and data. The result declared on the second day came under the guidance of Sheikh Mohammed bin Rashid Al Maktoum initiative, UAE Vice President and Prime Minister and Ruler of Dubai, “Dubai World Islamic Economic capital,” and under the patronage of His Highness Sheikh Hamdan Bin Mohammed Al Maktoum, Crown Prince of Dubai, Chairman of the Executive Board.
Held from the 22nd–24th of March, 2015, the Forum took place in collaboration with the Department of Islamic Affairs and Charitable Activities in Dubai and Dubai Center for the development of Islamic economics in order to achieve the economic doctrinal reference to the framework of the Shari’a.
The first day of the Forum touched upon the utmost importance of the legislative that deals with the assets of the economy in Islam. A number of researchers and scientists participated with their notions on the characterization of the economic issue in Islam, establishment according to the controls of legitimacy, the growing role of Islamic economics in the treatment of a global economic crisis, and thoughts on achieving a more balanced global economy in the future.
Sustainability, the most prominent feature of Islamic Economics
Contrary to the first day, the second day of the Forum discussed a number of sensitive issues in light of the third axis -an analytical hub for Islamic Economics. Managed by honorable Dr. Omar Khatib, Executive Director of Islamic Affairs, the most prominent point during the deliberation of this axis was that sustainability should be the most prominent and distinguished imprint of the Islamic Economic framework to enhance confidence in this growing sector.
In his research, Dr. Salah Bin Fahad Al Shalhoub touched upon the subject of filiation. He confirmed such Islamic contracts already exist within and that the subject requires further thought and deliberation. A complete study of the subject will only help us achieve the development of a legislative officer system.
This type of Islamic transactions, stresses on the role of Islamic banks in the development of laws governing the image used in a number of existing banks, and activating effectiveness as the legitimate meaning.
Shalhoub also pointed out that the existence of a layer of intermediaries with high degree of efficiency are very vital and pivotal. He noted that the next stage requires building a solid foundation of Islamic financial institutions and encouraging them to take risk in the banking business after conducting extensive studies of benchmarks to encourage banks to establish an Islamic high investment profitability.
Dr. Haddad: Summary of the issues faced by the Islamic economics in the application mechanism
Honorable Dr. Ahmed Abdul Aziz Al Haddad, addressed peace and contemporary applications through his research. Most problems of Islamic economics lies in the absence of a strict application of verification mechanism for legitimate purposes. For example, “Bai salam” means a contract in which advance payment is made for goods that are delivered later. The seller supplies some specific goods to the buyer at a future date, in exchange for an advance price fully paid at the time of contract. It is necessary that the quality of the commodity, intended to be purchased is fully specified leaving no ambiguity leading to dispute. The objects of sale are goods and cannot be gold, silver, or currencies. Bai Salam covers almost everything that is capable of being described with respect to quantity, quality, and workmanship. It’s a form of sales venture in Islam whereby the goal is to achieve the purpose of financing, pointing out some of the differences, Faqih does not deny the possibility of introducing contemporary applications that meet the needs of the present, especially, in light of the urgent need in areas such as oil and gold.
In his research titled, ‘Legitimate and Professional Ruling Islamic Finance Industry Standards’, Prof. Dr. Kamal Tawfiq Hattab considered the first practical steps to frame the Islamic Action that has already begun with the launch of the Forum. Participants at the Dubai World Islamic Economic capital initiative considered a new platform for researchers and scholars, and the Knights of inspiring work in order to meet their responsibilities in carrying legitimate duties.
Al Hattab elaborated that the Forum was successful in displaying the development of the basic seven pillars especially the standards pillar, stressing that it is a collective responsibility borne by all parties of the Islamic economic work. At the same time, the work of the Islamic economy standards suffer a chaotic case and conflicts in practices, and calculations in some institutions of the Islamic Finance and Accounting. Multiple forms of non-disclosure policy, which requires standardization to be more convenient and easy, are requested, while suggesting the need for the formation of the Council of coordination between the Islamic economic institutions in the world.
Dr. Hamza Abdul Karim Mohammed Hammad highlighted problems faced by the Islamic Economic work, through his research titled, “Issues of investing money in Islamic banks”. Research points out the implementation of some laws, in addition to a lack of specialized Islamic economics staff, as well as the absence of governance institutional.
Participating on account of Murabaha is the solution for Islamic Economy
Through his research, Dr. Mustafa Mahmoud Abdel Aal spoke about the safety of Islamic legitimacy in some Islamic banks. He pointed out that there is a need to assess the subject internally. He highlighted the current Islamic banking philosophy in recruitment of funds and investing, based on the Murabaha at the expense of participation. He stressed that the development of participation occupies the next phase to establish a solid and diverse Islamic economy because it is the real engine of progress.
Abdel Aal linked the Islamic economics boom by transition to long-term investments. This is done to achieve sustainability in Islamic banking and to support the independence of the Sharia Supervisory Board in the departments of banks. Full-time members of the Commission should increase the circle of Sharia Supervisory Department by conducting technical training for staff auditors in the banks to nurture academic backgrounds that take into account the legitimate Islamic aspects.
Stability and flexibility are the most important Islamic Economy Standards
Prof. Dr. Walid Hoeml Awajan also presented a research paper for a forum titled, ‘Islamic instruments and contemporary applications’. The research summarized that the economic Islamic legislation combines stability (basics and Muslim Sharia law in the analysis of halal, and the prohibition of the Sacred) and flexibility (in trade and the creation of al-Faqih solutions). Financial institutions are the most important engines of modern economy. It has become a tool for collecting savings and an effective way to invest in favor of the momentum of the production processes.
Awajan requested a governance oversight law in these institutions through accountability and transparency. He reiterated demands from other participants while pointing out that autonomy of the administration should help in executing the decisions derived from this Forum.
The research by Dr. Essam Khalaf Anzi entitled ‘The promise and controls’, derived a partial flexibility in Islamic law and the possibility of the development of jurisprudence that are commensurate with the Shari’a. He also gave evidence of this flexibility in the ability of Dubai Islamic Bank to harmonize credit cards and making them available to its customers as an Islamic product is far from a problematic subtraction with other banks that do not involve the use of any benefits.
During the forum, Dr. Yazan Alaitat presented the models of social responsibility that should reflect the Islamic financial institutions.
In addition, two papers by Professor Dr. Mohammad Bashir and Dr. Abdul Hamid Al Baali were recognized. The first, ‘Formula of peace, parallel applications and peace in Islamic banks holding’, was the mechanism of legitimate application and the type of sale in order to achieve the purposes of the Islamic law. The paper is inspired by the experience of Islamic banks in Sudan’s. The second paper, ‘The profitability index for Islamic Financial Market’ sheds light on how to create a state of balance between the applications of Sharia on the one hand and target profitability of economic activity on the other.
The participants confirmed that the debate happening between scientists and specialists in economic affairs demonstrated the feasibility of these kind of conferences and forums in the creation of the future of the Islamic economy. They recognized the need to achieve a balanced vision between the provisions of Islamic law and the economy, while achieving high profit rates. The conclusion remains that Dubai is steadily moving towards achieving its goal to be the world capital of Islamic economics.