Dr. M. Kabir Hassan noted that the current landscape of the halal industry lacks sufficient integration with Islamic finance, which is crucial for creating a robust halal ecosystem. He emphasized the need to raise awareness among various stakeholders, including the public, entrepreneurs, and Islamic financial institutions, about utilizing Islamic finance as a source of capital for the production of halal goods and services. Dr. Hassan outlined a vision for a closer alignment between the halal industry and the Islamic financial system, proposing a theoretical framework to establish a strong, interconnected halal ecosystem.
Method and Substance of Islamic Economics: Moving Where?
Dr. Volker Nienhaus stated that Islamic economics began as a critique of conventional economics, aiming to establish a new paradigm aligned with the Islamic worldview. However, this goal remains largely unmet. Much of the current literature labeled 'Islamic economics' uses conventional quantitative methods, focusing mainly on issues in Muslim countries and Shariah-compliant finance. These studies often lack a holistic, systemic approach necessary for a distinct Islamic economics paradigm. The discipline needs stronger collaboration between economists and Shariah scholars. Although initial models emphasized participatory finance and risk-sharing, many Islamic law scholars have focused on replicating conventional, risk-free instruments, moving Islamic finance closer to mainstream practices.
The Application of Islamic Thought to Economic Policy Making in a Threatened World
Rodney Wilson pointed out that the twin threats of uncontrollable disease and global warming are causing economists to rethink their research agendas. From an Islamic perspective, these threats pose moral challenges that must be addressed. More focus on how economic policy can best provide a way forward is warranted. While it is correct to stress the differences in approach between Islamic and conventional economics, in present circumstances it is more urgent to work on policy areas. How can recovery from the COVID-19 pandemic be managed, and will inadequate access to vaccines penalize the poor further? If the planet itself becomes degraded, does mankind have a future? An appropriate allocation of Islamic finance can contribute to solutions, but a spirit of international economic cooperation is needed.
Islamic Capital: Ethical Foundations of an Equitable Economic System
Dr. Habib Ahmad highlighted that the capitalist system has led to economic growth but has failed to address income inequality and environmental destruction due to its lack of ethical considerations. Islamic economics, guided by Shariah principles, aims for equitable growth by prioritizing welfare (Maṣlaḥah) and minimizing harm (Mafsadah). However, Islamic finance has often replicated conventional debt-based systems, focusing narrowly on legal compliance, which risks perpetuating inequalities. To achieve true equity, Islamic finance must integrate ethical values such as transparency and justice, increase non-debt-based financing, and involve social finance sectors like Zakāt and waqf to reduce poverty and promote inclusive growth.