Moral Reflections on Economics

Vol 4, Issue 3, March 2024

“It is He who has made the The Prophet (pbuh) said,

night dark for you so that you “Whoever does not give up
may rest in it, and the day a forged speech and evil
source of light. Surely, there actions, Allah is not in need of
are signs in this for a people who listen.” his leaving his food and drink (i.e. Allah
will not accept his fasting.)”
[Al-Qur’an, Younus: 67] [Sahih Bukhari, 1903]

Inside This Issue “People ‘over-produce’ pollution

because they are not paying for the costs
 Sustainability Lessons from Fasting 1
of dealing with it.”
 Ensuring Corporate Sustainability 3
 IEP Public Poll Results 4 Ha-Joon Chang
 Book Review 5
 Research Paper in Focus 8 23 Things They Don't Tell You About
Capitalism
 Reflections 10
 Market News 12
 Economic Indicators 15
 Call for Papers 20

Sustainability Lessons from Fasting

Salman Ahmed Shaikh

We are using up environmental resources If something is abundant, it is valued less.

beyond regenerative capacity. There is Water maybe precious for life. But, its
need for responsibility and restraint. value in exchange will not reflect it
Diane Coyle in his book “Economics of because of abundance in current time
Enough” talks about creating a period. However, this abundance needs to
sustainable economy, i.e. having enough be kept intact so that the future
to be happy without cheating the future. generations also inherit liveable planet.

UN Sustainable Development Goal 12 talks Exchange in market is done by living

about responsible consumption and human beings. If their decision horizon
production. FAO reports that one-third of concerns short term self-interest, then
the food produced for human their behaviour may not be compatible
consumption is lost or wasted globally, with what is suitable keeping in view the
which amounts to about 1.3 billion tonnes welfare of society at large and future
per year. generations. There is need for self-
responsibility and feeling conscious not
about self-survival, but survival and well-
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 1
being of our partners in environment as
well, both within our own and other
species.
Exchange in markets by firms is analysed
through the solitary lens of profit
maximization. Nobel Laureate Milton
Friedman regarded profit maximization as
not only a self-interested goal, but a
social responsibility. However, markets
do not incorporate social costs. Prices
determined in the market do not reflect
negative externality costs. Social value
creation or value lost does not feature in
price.
Moreover, efficiency loss in massive food
waste is not incorporated in
microeconomic analysis of market
exchange as efficiency is viewed from the
narrow perspective of loss in consumer
and producer surplus in market exchange.
Economics is neutral between two
efficient outcomes, one egalitarian and
the other where there is zero consumer
surplus in first-degree price
discrimination under monopoly.
Nobel Laureate Amartya Sen argues for
fostering commitment in choice
behaviour. Commitment is central to his
vision of an alternative to mainstream
rational choice theory. But, what can
bring commitment?
A natural resource with intrinsic value
shall not be compared with receipt of
little more fiat currency. Fiat currency
does not have intrinsic value. An
illuminating, enlightening and
informative book cannot be valued just by
measuring the cost of printing and
binding.
Another important thing to consider is
that experiential learning has deep
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
effects. A living experience transfers not
only information, but deep emotions.
Earth hour is an example of learning and
observing restraint, albeit for a very brief
period. But, lighting out still does not
touch deeply the emotion and state of
how is it like to be not eating or drinking.
FAO reports that one out of 9 people go to
bed hungry. Currently, in Gaza, 2 million
people are hungry and face the risk of
death at any moment.
Fasting in the full-month of Ramadan
every year teaches restraint by
experiencing it for a considerable period.
An exercise of self-restraint over the
whole month affects life style, habits and
preferences. It brings humility, discipline,
restraint, self-control and social
consciousness about issues of hunger and
deprivation. It is more powerful to share
a state of being for the whole month in
restraint than an hour of lighting out. It
encourages solidarity and pro-social
behaviour.
Fasting also encourages introspection. If
one is avoiding food intake and intimacy
on Allah’s orders even when alone, then
everyone must recognize that he is also
not alone at other times of day and night.
Allah is always watching all we do and
intend to do. Thus, even when there is no
law or binding force to keep us on the
right path, we should still choose the right
path as our acts are always under the
surveillance of Allah.
Fasting also enhances the spirit of
sacrifice and giving. This spirit requires
self-restraint and looking beyond self.
Fasting enhances this restraint and makes
a person realize that what is needed for
survival is not having plenty of things.
Therefore, if Allah has blessed us with
2
plenty of resources than what we need,
then we should not forget the share of
others in our endowments.
Ensuring Corporate Sustainability
Hassan Al-Ahdal, FCMA
It is important for policymakers and
regulators to encourage corporations to
embrace sustainability in their production
processes, packaging, and logistics. This
can be most effectively achieved through
a multifaceted strategy. Following are the
important options in this regard:
Integrated Enforcement Mechanism
Employ a balanced approach by combining
mandatory reporting with penalties for
non-compliance. Additionally, incentivize
sustainable practices by offering tax
credits to companies that surpass the
required sustainability standards.
Governmental Assistance
Extend financial support through subsidies
aimed at fostering the development and
integration of sustainable technologies.
This financial aid can facilitate a
smoother transition for businesses
towards eco-friendly practices.
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
Collaborative Initiatives and Educational
Outreach
Engage in collaborative efforts with
industry stakeholders to formulate
sustainability standards tailored to
specific sectors. Emphasize education and
awareness campaigns to promote the
voluntary adoption of sustainable
practices.
It is crucial to customize these strategies
according to each industry’s distinct
challenges, economic dynamics, and the
level of maturity of sustainable
alternatives within that sector.
Moreover, cultivating a corporate culture
centered on social responsibility and
sustainability, supported by heightened
public awareness and consumer demand,
can serve as a complementary force to
regulatory measures and incentives.
3
 IEP Public Poll
In February 2024, the Islamic Economics
Project held a public poll on its LinkedIn
page. The question in the poll was “What
are the best ways to encourage
corporations in adopting sustainability
practices in their production process,
operations, packaging and logistics etc?”.
Options were:
 Mandatory Reporting
IEP Poll Results
Subsidies 5
Tax Credits
Fines 3
Mandatory Reporting
0 5
Nonetheless, 22% of the respondents think
that tax credits will be beneficial for
ensuring corporate sustainability. On the
other hand, 12% of the people were in
favour of subsidies, and 7% of the people
believed that fines are a better option.
It seems that people still have trust in
mandatory reporting. Such reporting
would definitely be overseen and verified
by internal and external auditors and also
seen by investment community including
analysts. Thus, for the purpose of getting
noticed, corporations would be willing to
report and because such reporting will be
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
 Fines
 Tax Credits
 Subsidies
More than 40 people voted in the poll.
Answers are illustrated in the graph
below. It is interesting to note that more
than 59% of the people voted for
mandatory reporting.
9
24
10 15 20 25 30
scrutinised by stakeholders at large,
chances are that such reporting would be
factual and not overstatement of
performance.
Problem with tax related approaches and
fines is that they require cost of
administering on the part of regulators
and authorities. If subsidies and tax
credits are given uniformly, they are
sometimes taken for granted. These could
be the reasons why people seemed to
have less confidence in the effectiveness
of these options.
4
 Book Review
Women, West and Islam ( ‫عورت مغرب‬
Title:
‫)اور اسالم‬
Author: Sarwat Jamal Asmai
Publisher: IPS Press
Islam grants equal rights to all humans in
almost all matters irrespective of gender.
On the other hand, Islam identifies
certain natural differences which entail
that there can be effective
institutionalization of the family system
by having specialization of roles. It does
not mean that the roles remain
completely non- overlapping.
Islam provides generous rights to women
in many matters and Muslim societies do
not need to look beyond their faith when
it comes to providing women human, civil
and socioeconomic freedoms [1].
It also needs to be understood that Muslim
countries are not a homogeneous group.
Muslim countries show tremendous
political, economic and cultural
heterogeneity [2]. Thus, distinction
between religion and culture can provide
a flexible basis of legal and cultural
changes in Muslim society [3].
For OIC countries where data is available,
there are 16 out of 52 OIC countries whose
proportion of women parliamentarians
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
exceeds the average of middle-income
countries. In 17 Muslim majority
countries, legislation for ensuring equal
remuneration has been made. In 16
Muslim majority countries, legislation for
ensuring non- discrimination in hiring has
been made.
Furthermore, except in Suriname, there
has been legislation to provide maternity
leave in all OIC countries. Such legislation
can ensure a long-term stay in labour
force as well as re-entry into the labour
force. In 38 Muslim majority countries,
legislation for ensuring no child marriage
has been made [4]. Nonetheless, in other
countries where such legislation is yet to
be made, it is not due to Islam. Rather,
Islamic principles are favourable to equal
remuneration to the same quantity and
quality of work, non-discrimination in
hiring and providing personal and social
freedoms to women.
The institution of family is highly
respected in Islam. Women are an
indispensable part of this institution. As
per Islamic worldview, mental and
5
physical capabilities that we enjoy are the
blessings of Allah and we hold them as a
trust. Therefore, based on the differences
in these mental and physical capabilities
alone, no one is superior and powerful in
the eyes of Allah.
As per Islam, following is a brief summary
of women rights.
Muslim women must educate themselves
like men. Education is not only allowed,
but it is also compulsory for women like
for men (Source: Sunan Ibn-e-Majah, Book
of Sunnah: Hadith No. 224).
Women can choose an occupation and
earn their livelihood. They are allowed to
do that. But, they are not made
responsible for it. Men are made
responsible for it in the Islamic family
system.
Women have the right to own property
and engage in trade. The first wife of Holy
Prophet (pbuh) was a businesswoman. It
was not until the late 1870s onwards in
Europe that married women achieved the
right to enter into contracts and to own
property through Married Women’s
Property Act 1870. Also, women got the
right to vote in the USA 100 years ago only
through Nineteenth Amendment to the
United States Constitution which was
passed in 1919 and adopted in 1920.
Women have the right to choose their
husbands and the right to separate from
their husbands.
Married women are entitled to ‘Mehr’
(wealth at the start of marriage) as well
as ‘Wirasat’ (prescribed share in wealth at
the death of husband, children and
parents).
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
The mother must be respected three
times more than the father according to a
Hadith (Source: Sahih Al-Bukhari, Book of
Manners, Hadith 5971).
In another Hadith, it is said that ‘paradise
lies beneath mother’s feet’ as a symbolic
representation to highlight the
importance of how critical one’s attitude
towards mother really is for having
eternal success in the life hereafter.
(Source: Sunan Al-Nisai, Book of Jihad,
Hadith No. 3106)
As per a Hadith, best men are considered
those who are best to their wives.
(Source: Jam-et-Tirmizi, Chapters on
Suckling, Hadith 1162)
No man is allowed to have extra-marital
relationships with any other woman.
Adultery and prostitution is a severe
crime in Islam and can lead to capital
punishment.
In fact, one of the arguments of non-
believers was to say how we can accept
this religion which gives such generous
rights to women. Prophet Muhammad
(pbuh) Himself married an old widow who
was a businesswoman. Several non-Muslim
historians, for this reason, hold the view
that Islam modernized the Arab world at
that time in terms of human rights and
especially the women rights. Gustave Le
Bon says in his book Arab Civilization
writes:
“The principles of inheritance which have
been determined in the Qur’an have a
great deal of justice and fairness. The
person who reads the Qur’an can perceive
these concepts of justice and fairness in
terms of inheritance through the verses I
quoted. I should also point out the great
6
level of efficiency in terms of general laws
and rules derived from these verses. I
have compared British, French and Islamic
Laws of inheritance and found that Islam
grants the wives the right of inheritance,
which our laws are lacking while
Westerners consider them to be ill-
treated by the Muslim men. [5]”
But, in reality, we also see things like
honour killing and discouragement of
education and social mobility of women in
some parts of the Muslim world.
Moreover, we also see strong
encouragement for complete body
covering in some Muslim societies.
Briefly, we give an answer to these issues.
Honour killing has nothing to do with
Islam. It is to do with ignorance and
especially about Islam. Education is a
religious responsibility for all Muslims,
men and women included. Regarding
social mobility, there is no strict
restriction, but a set of etiquette.
The etiquette is also prescribed for men
(An-Nur: 30). Women are also prescribed
to cover themselves modestly in public
(An-Nur: 31). With this modesty, they play
socio-economic and even political roles as
well in most parts of the Muslim world.
Regardless of how much the Muslim
societies conform or do not conform to
Islamic ideals, the Islamic standpoint does
not negate the socio-economic mobility of
women. Islam asks both men and women
to lead their lives virtuously and it is only
God-consciousness and good actions
which make one person more successful
than the other in the grand purpose of this
life in the Islamic worldview.
The Islamic family system makes husbands
financially responsible as head of the
family. This also means that they have an
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
additional responsibility since husbands
are made primarily responsible for their
family’s financial sustainability. In Muslim
societies, low labour force participation
by women is not because of strict
prohibitions by Islam. The economic and
social role of women had remained
important, especially in building social
capital. The primary contribution and
expected responsibility of women as
mothers is to inculcate the right values as
first nursery and learning institution for
their children. Undocumented labour that
women provide in agrarian economies
understates their economic role in some
Muslim countries where agriculture is still
a significant contributor to the national
income. As Muslim economies become
more knowledge- based and industrialized
in the future, the labour force
participation of women will further
increase in non-agricultural occupations.
The institution of family brings social
capital into existence. It ensures empathy
and responsibility. It brings a very lasting
and durable social safety net. Islamic
injunctions about how to treat orphans
foster social security for individuals with
special circumstances. Furthermore, the
Islamic inheritance laws ensure that the
wealth of the deceased is distributed
widely among the members of the family
of the deceased and this permanently and
systematically ensures reducing
concentration of wealth in every
generation.
Empirical evidence shows that more
crimes happen against women in societies
where the family institution had been
ignored or established with different
norms. The frequency of unwed mothers
has risen significantly, especially in West.
Since 1970, out-of- wedlock birth rates
have soared from 24% in 1965 to 64% in
7
1990 for black infants and 18% from 3.1%
for white infants during the same period
in USA alone [6]. Moreover, reported
crimes against women are more in
numbers in regions with less Muslim
population [7]. The 2016 National Crime
Victimization Survey (NCVS), which
measures sexual assaults and rapes that
may not have been reported to the police,
estimated that there were 431,840
incidents of rape or sexual assault in USA
in 2015 alone [8].
4. Shaikh, S. A. (2020). “Women in OIC
Countries: State of Participation,
Freedom and Supportive Legislation” In
‘Economic Empowerment of Women in
the Islamic World: Theory and Practice
(Eds.)’ by Azid, T. & Ward-Batts, J. L,
UK: World Scientific Publishing
Company.
5. Le Bon, Gustave (1974). “The World of
Islamic Civilization”. New York: Tudor
Publishing Company.

Therefore, authors argue that these facts 6. Akerlof, G. A. & Yellen, J. L. (1996).
explain the reasons why despite “An Analysis of Out-of- Wedlock Births
propaganda, women in West embrace in the United States”, Brookings
Islam and more in number than men. Report.

References 7. Harrendorf, S., & Heiskanen, M. (2010).

“International Statistics on Crime and
1. Hashim, I. (1999). “Reconciling Islam Justice”. S. Malby (Ed.). European
and Feminism”, Gender & Institute for Crime Prevention and
Development, 7(1), 7 – 14. Control.

2. Spierings, N., Smits, J., & Verloo, M. 8. Truman, J. L.; Morgan, R. E. (2015).
(2009). “On the Compatibility of Islam “Criminal Victimization 2015 Report”.
and Gender Equality”, Social Indicators Bureau of Justice Statistics.
Research, 90(3), 503- 522. Washington DC.

3. Warren, C. S. (2008). “Lifting the Veil:

Women and Islamic Law”. Cardozo JL &
Gender, 15, 33 – 65.

Research Paper in Focus

Paper Title: Does PLS in Islamic banking limit excessive money creation?

Author: Khoutem Ben Jedidia, Hichem Hamza

Publisher: Journal of Islamic Accounting and Business Research, 15(3), 422 – 442.

In this paper, authors argue that bank expansion. They agree that bank-led
lending is the major source of monetary money creation is a key issue in both

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 8

conventional and Islamic financial
systems. Authors investigate the
involvement of profit and loss sharing
(PLS) in money creation and especially
how can PLS limits money creation “out of
nothing.”
Authors argue that Islamic banks create
money differently compared to
conventional ones. Especially, by avoiding
a purely financial intermediary, money
creation under the PLS principle sustains
a strong relationship with the real
economy and leads to a lower money
multiplier. Therefore, PLS mechanisms
allow financing through real assets and
not credit assets “out of nothing.” This
could prevent excessive money creation
from causing harmful effects on
indebtedness and financial instability.
Authors thinks that PLS offers a valuable
resolution for banking system money
creation through the optimization of
Islamic bank financing by facilitating the
separation of the monetary function from
the credit one. This reform thought
reinforces the stability value of money
allowing it to fully perform its functions
with reference to the directives of Sharia.
This especially allows the integrity and
purchasing power of money, the reduction
of the gap between the evolution of both
real and financial economies and,
consequently, the indebtedness and
crisis. Authors recommend to promote PLS
financing by reforming institutional and
regulatory constraints.
Nonetheless, the issue needs to be looked
at more deeply. In practice, close link
with the real economy has to go beyond
just involving asset as a showpiece.
Pricing and returns have to be directly
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
linked with ex-post actual productivity of
the particular asset in particular project.
Using conventional interbank rates to
determine rentals and deferred price in
advance with prior unilateral undertaking
mimics the conventional structure. It does
not bring any meaningful egalitarian
system.
Even with the use of PLS nomenclature,
Islamic banks follow the same BASEL rules
and fractional banking system. Where
Islamic banking solutions have
shortcomings, central banks have the dual
banking system to keep the system going
as is. With the use asset light structures,
Bai Inah and Tawarruq, even the nominal
and structural differences become less
distinct.
Therefore, there is a need to ensure
proper PLS system. The issues of moral
hazard, adverse selection and perverse
incentives need to be handled to promote
PLS.
Plain vanilla PLS may not work. But, by
adding covenants, multi-tier profit
sharing ratio, innovative expense sharing
arrangements and bringing liquidity in the
secondary market, PLS can work. After
all, equity markets work and they have
huge investor and capital base.
The right covenants need to be in place
and Islamic banks have to think more in
terms of VC and investment banks if they
want their claim of having close link with
real economy realize in true letter and
spirit.
9
 Reflections
The Ultimate Creator has to be uncreated
since it is necessary for the universe to be
created in the first place. We find cause
or creator for something that is created
and that begins to exist at some finite
point in time like the universe which came
into existence 13.7 billion years ago. The
Ultimate Creator did not come into
existence at some finite point in time. It
is ever-existing. This God is not the
‘scientific conjecture of god of the gaps’
which fits in the novel for pages that are
not found in the novel.
This God is the author of the whole novel
and the programmer of nested loops
within loops. He is not the pixel of the
painting or a brush or a colour or the
painting itself. It is the painter. It is not
the laws of physics or theorems of
mathematics alone. It is the source of
these laws and theorems. Isaac Newton
aptly said that gravity explains the
motions of the planets, but it cannot
explain who sets the planets in motion.
Even many of the scientists who present
themselves as atheists or agnostics are
comfortable with a non-intervening
concept of deity which brought the laws
of physics and primordial inputs in
existence in the first place. It is the
concept of god espoused by William Paley,
Voltaire and Spinoza. Nonetheless, this
line of thinking is inconsistent with human
curiosity. If we believe that there is a
God, then we should seek Him. As a
matter of fact, God has communicated to
us through His messengers and the last
two messengers, Jesus (pbuh) and
Muhammad (pbuh) have lived in the
daylight of history. Qur’an is the God’s
words with us which explains the purpose
of creation. Instead of assuming God as a
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
watchmaker, mathematician, master
equation and a pilot who starts engine but
turns the machine to autopilot, it is
important for us to be consistent with our
curiosity to seek God. We should not avoid
it simply because of not willing to have
responsibility.
As per monotheistic religions, Allah, the
Supreme Being, created all living and non-
living things in the universe. This universe
had a beginning and this is a fact which is
endorsed by physics. This universe cannot
be its own creator since it began to exist
at some point in time. It cannot create
itself into existence while being in
existence already at the same time. As
part of the cosmos, are we our own
creators?
James Clarke Maxwell who formulated the
classical theory of electromagnetic
radiation is quoted to have said: “Science
is incompetent to reason upon the
creation of matter itself out of nothing.
We have reached the utmost limit of our
thinking faculties when we have admitted
that because matter cannot be eternal
and self-existent, it must have been
created [1]”.
Prof. Lawrence Krauss writes: “The
declaration of a First Cause still leaves
open the question, ‘Who created the
creator?’ After all, what is the difference
between arguing in favour of an eternally
existing creator versus an eternally
existing universe without one? [2]” Big
Bang has proved that this universe had a
beginning 13.7 billion years ago.
It is not an eternally existing universe.
The lifeless matter cannot be conceived
as creating itself independently. We use
10
matter and reshape it into different forms
to make aeroplanes, rockets, spaceships,
skyscrapers and expansive gardens. We,
humans, having the power to form and
deform matter through construction and
destruction can also not be our own
creators and this universe. We have barely
come to exist since few hundred thousand
years ago on this planet.
We know and recognize by experience and
observation our physical limits and
fallibility. Our behavioural contradictions
and fallacies are so much well
documented that the busiest field in
economics these days is behavioural
economics. Herbert Simon writes:
“The capacity of the human mind for
formulating and solving complex problems
is very small compared with the size of
the problems whose solution is required
for objectively rational behaviour in the
real world -- or even for a reasonable
approximation to such objective
rationality. [3]”
The question of who created the Ultimate
Creator is not valid since the Ultimate
Creator is not a creature and needs not to
be created. For someone to be the
Ultimate Creator, He has to be someone
beyond the constraints of this world and
nature. If the premise is that the Ultimate
Creator created everything and nothing
exists independent of His will, then, the
logical conclusion would be that He has to
be an independent personality outside of
the universe and have no constraints of
laws governing this universe.
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024
Emeritus Professor of Mathematics at the
University of Oxford, John Lennox
succinctly answers this naïve counter
question as to who created god. Making a
remark on Prof. Dawkin’s book ‘God
Delusion’, he said that God Delusion
argument is that, if God created
everything, we would have to ask who
created God. But the very asking of this
question reveals at once that Dawkins has
in mind a created god: ‘Who created
God?’ Created gods certainly are a
delusion [4]. He further says:
“Furthermore, if Dawkins’s question is
valid, it can be turned back on him. He
believes that the universe created him.
Therefore, we are justified in asking him:
who created your creator? [5]”.
References
Kragh, H. (2004). “Matter and Spirit in the
Universe: Scientific and Religious
Preludes to Modern Cosmology” (Vol. 3).
London: Imperial College Press.
Krauss, L. M. (2012). “A Universe from
Nothing: Why There is Something Rather
than Nothing”. New York: Atria Books.
Simon, H. (1957), “Models of Man”, New
York: Wiley.
Lennox, J. C. (2009). “God's Undertaker:
Has Science Buried God?”, Oxford: Lion
Books.
Lennox, J. C. (2011). “Seven Days that
Divide the World: The
Beginning According to Genesis and
Science”. Michigan: Zondervan.
11
 Market News
 Islamic financial institutions must comply with AAOIFI standards: SECP (Business
Recorder, Feb 03).

 KIB: Manal Al-Rubaian is globally recognized as one of the top ‘500 Influential
Women in Islamic Business and Finance’ (ZAWYA, Feb 04).

 Meethaq Shari’ah Supervisory Board members discuss the plans for better delivery
of services (Times of Oman, Feb 18).

 Saudi Arabia closes the savings round of its SAH bonds for February at over $229
million (ZAWYA, Feb 15).

 The President of Somaliland will inaugurate the 11th African Islamic Finance Summit
(ZAWYA, Feb 26).

 National Shari’ah finance industry continuing to grow: Ministry (ANTRA News, Feb
26).

 UAE’s new Islamic digital bank ‘Ruya’ set for launch, headquarters in Ajman (Gulf
News, Feb 29).

 Qatar Islamic bank rolls out an e-commerce platform on its mobile app (IBS
Intelligence, Feb 06).

 Islamic banking industry likely to record 100% profit growth in 2023 (ProPakistani,
Feb 05).

 Faisal Islamic Bank Egypt’s standalone profit was down 9.35% YoY in 2023 (ZAWYA,
Feb 06).

 Saudi Tadawul Group secures $133.33 million loan from Al Rajhi Bank (Zawya, Feb
05).

 Meezan Bank’s profit is up nearly 91% in 2023 – Business & Finance (Business
Recorder, Feb 15).

 Raqami Islamic Digital Bank in Pakistan partners with Codebase Technologies for the
Digibanc platform (FinTech Futures, Feb 26).

 Qatar Central Bank issues treasury bills and Islamic Sukuk worth $ 412 million
(ZAWYA, March 2).

 Bahrain’s $2 billion Sukuk and bond issuance reaps over $14 billion windfall
(Economy Middle East, Feb 07).

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 12

 Budgetary requirements: Ijarah Sukuk funding to help government save Rs 32 billion
per year (Business Recorder, Feb 01).

 ICDPS launches $ 500 million Sukuk at 4.950% yield (ZAWYA, Feb 07).

 SECO’s fresh Sukuk offers 35 bps of new issue premium (GlobalCapital, Feb 06).

 Saudi electricity announces sale of Dual-Tranche Sukuk worth $2.2 billion (Forbes
Middle East, Feb 07).

 Govt to raise Rs 150 billion via Islamic bonds auction at PSX (The News International,
Feb 18).

 PSX collaborates with NCCPL, and CDC for the GoP Ijarah Sukuk awareness session
(Mettis Global, Feb 12).

 Saudi Arabia closes its February Sukuk issuance at $2.10 billion (Arab News, Feb 14).

 ESG Sukuk growth to be catalyzed by investor mandates and funding diversification:

Fitch (Arab News, Feb 08).

 Saudi Middle East Healthcare Co begins the sale of riyal-denominated Sukuk at 7.20%
(ZAWYA, Feb 12).

 Qatar Central Bank issues $686 million treasury bills and Sukuk (ZAWYA, Feb 03).

 Outstanding ESG Sukuk surges to $36.1 billion amid sustainability drive (ZAWYA, Feb
08).

 Dubai Islamic Bank successfully prices $1 billion sustainable Sukuk (ZAWYA, Feb 28).

 Jazz, EFU life introduce Takaful to broaden financial inclusion (Daily Times, Feb 26).

 Amana Takaful Insurance sets a new standard for motor insurance with its cutting-
edge app (The Island. IK, Feb 18).

 Zakat contributions: SECP issues new accounting standards for NPOs (Business
Recorder, Feb 28).

 RM6.5mil in zakat being distributed to over 10,000 recipients in Melaka (The Star,
March 02).

 Jakim Enhances Support for Muslim Converts with RM 14.7 Million Zakat Allocation
in Malacca (BNN Breaking, March 02).

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 13

 Qatar’s Islamic Fintech market to grow to $4 billion by 2027 (Economy Middle East,
Feb 16).

 Abu Dhabi Islamic Bank digitizes cross-border services with Progress Soft (FinTech
Futures, Feb 22).

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 14

 Economic and Financial Indicators

Islamic Banking Statistics 2023

Gross Net Profit Cost to

Country CAR ROA ROE
NPF Margin Income
Bahrain 19.5 0.8 0.8 10.2 37.3 54.1

Bangladesh 21.2 1.2 0.5 11.1 34.4 54.8

Brunei 16.6 2.2 2.1 16.9 59.0 44.5

Egypt 19.81 2.53 3.38 40.15 68.94 23.99

Indonesia 25.4 2.4 2.8 19.6 37.5 68.2

Jordan 21.1 1.9 1.7 18.2 54.5 45.4

Kuwait 17.1 1.8 1.4 11.2 56.7 38.8

Malaysia 17.8 1.6 1.0 13.9 38.9 42.7

Morocco 20.0 0.3 -1.5 -17.3 -63.3 159.6

Nigeria 13.53 6.02 2.31 54.40 31.82 60.3

Oman 13.53 6.02 2.31 54.40 31.82 60.3

Pakistan 21.6 4.3 4.6 82.5 57.5 36.4

Palestine 15.0 4.1 0.8 9.7 19.4 61.5

Qatar 19.1 1.8 1.5 16.2 40.1 13.3

Saudi Arabia 19.6 1.0 1.77 13.6 49.0 38.8

Sudan 8.60 4.68 3.01 34.1 37.5 50.0

Turkey 21.5 1.0 4.7 59.7 52.8 28.1

6.3
UAE 18.4 2.0
15.3 35.7 54.4

Source: IFSB Data

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 15

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 16
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 17
 SUKUK Investments (Source: SP Dow Jones)
S&P Europe 350 ESG Shariah S&P 500 ESG Shariah Index
Index (EUR) TR (USD) TR
3900 750

3400 650
550
2900
450
2400
350
1900 250
1400 150

S&P Developed LargeMidCap S&P Emerging LargeMidCap

Shariah (USD) TR ESG Shariah Index (USD) TR
540 2300
490 2100
440 1900
390 1700
340 1500
290 1300
240 1100
190 900
140 700

S&P Asia Pacific LargeMidCap S&P Global 1200 ESG Shariah

ESG Shariah Index (USD) TR Index (USD) TR
2600 5400
2400 4900
2200 4400
2000 3900
1800 3400
1600 2900
1400 2400
1200 1900
1000 1400

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 18

 Global Economic Perspectives June 2023
Projections for Real GDP Growth for 2023, 2024 and 2025

Country 2023f 2024f 2025f

Algeria 1.7 2.4 2.1
Bahrain 2.7 3.2 3.1
Bangladesh 5.2 6.2 6.4
Benin 6 5.9 6.1
Burkina Faso 4.3 4.8 5.1
Chad 3.2 3.4 3.1
Comoros 2.8 2.9 3.6
Côte d'Ivoire 6.2 6.5 6.5
Djibouti 4.4 5.4 5.9
Egypt 4 4 4.7
Gambia 5 5.5 5.8
Guinea 5.6 5.8 5.6
Guinea-Bissau 4.5 4.5 4.5
Iran 2.2 2 1.9
Iraq -1.1 6 3.7
Jordan 2.4 2.4 2.4
Kenya 5 5.2 5.3
Kuwait 1.3 2.6 2.4
Lebanon -0.5
Maldives 6.6 5.3 5.9
Mali 4 4 5
Mauritania 4.5 5.6 6.8
Morocco 2.5 3.3 3.5
Mozambique 5 8.3 5.3
Niger 6.9 12.5 9.1
Nigeria 2.8 3 3.1
Oman 1.5 2.8 2.6
Pakistan 0.4 2 3
Qatar 3.3 2.9 3.1
Saudi Arabia 2.2 3.3 2.5
Senegal 4.7 9.9 5.2
Sierra Leone 3.4 3.7 4.4
Suriname 2.4 3.2 3.1
Syrian Arab Republic -5.5
Tunisia 2.3 3 3
United Arab Emirates 2.8 3.4 3.4
West Bank and Gaza 3 3 3
Yemen -0.5 2

Source: World Bank Global Economic Perspectives, June 2023

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 4, NO 3 MAR 2024 19

 Call for Papers
Special Issue, Emerald Journal of Financial Reporting and Accounting
https://www.emeraldgrouppublishing.com/calls-for-papers/islamic-financial-
accounting-reporting-and-accountability

ICSD 2024: 12th International Conference on Sustainable Development

European Center of Sustainable Development
September 11-12, Rome, Italy
https://www.preventionweb.net/event/icsd-2024-12th-international-conference-
sustainable-development-rome-italy

Annual Conference of the British Association for Islamic Studies

University of Leeds, Monday 20 - Tuesday 21 May 2024
https://www.brais.ac.uk/conferences/brais-2024/cfp

3rd International Conference on Islamic Economics 2024 (3rd ICONIE 2024)

24th – 25th April 2024 (Physical & Online), Hotel Holiday, Sarajevo, Bosnia
https://submit.confbay.com/conf/iconie2024

NACIF 2024 Conference

'Tapping The Untapped Islamic Financial Market in North America'
https://www.nacif.us/call-for-papers.html

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