What is Wrong with Islamic Economics?

What is Wrong with Islamic Economics?

Analysing the Present State and Future Agenda

Studies in Islamic Finance, Accounting and Governance series

Muhammad Akram Khan

What is Wrong with Islamic Economics? takes an objective look at the state of the art in Islamic economics and finance. It analyses reasons for perceived stagnation and also suggests a way forward.

Chapter 15: Practice of interest-based finance among Muslims

Muhammad Akram Khan

Subjects: asian studies, asian economics, economics and finance, asian economics, financial economics and regulation, islamic economics and finance, money and banking


Orthodox scholars claim a complete consensus (ijma’) about commercial interest being a form of riba. Farooq (2006-d) has quoted from a sample of 10 scholars who claim the consensus. Included in this list are Abu al-‘Ala Mawdudi (1903–79), Yusuf al-Qardawi, Wahba Zuhayli, Tariq Talib al-Anjari, Thanvir Ahmed, Mabid al-Jarhi, M.N. Siddiqi, M.U. Chapra, Munawar Iqbal and Imran Ahsan Khan Nyazee. To refute the claim of consensus, he has given another list of scholars, which includes Syed Ahmad Khan (1819–98), Muhammad Abduh (1849–1905), Rashid Rida (1865–1935), Abdullah Yusufali (1872–1953), Abd al-Razzaq al-Sanhuri (1895–1971), Muhammad Asad (1900–92), Fazlur Rahman (1911–88), Mahmud Shaltut (1893–1963), Abdel Wahab Khallaf (1888–1956) and Ibrahim Shihata (1937–2001). Besides, some of the contemporary Islamic scholars hold similar views. Examples are Fathi Osman, Nawab Haider Naqvi, Salim Rashid, Imad al-Din Ahmed, Omar Afzal, Raquibuzzaman, Abdulaziz Sachedina, Abdullah Saeed, Mahmud El-Gamal and Mohammad Fadel.

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