Islamic Financial System Discourages Accumulation of Wealth: Expert Says

LAHORE –  Islam’s finance and banking system discourages accumulation of wealth in few hands, said Umar Farooq Quddusi, an expert on Islamic financial system.

He stressed the need for promoting Islamic financial and banking system in society to avail benefits of Riba-free economy. “Islam has guided us in each and every aspect of life and has laid down general principles, which could act as guidelines in all spheres of life,” he said. He said that Islamic banking is a concept that is based on Sharia’s principles and its structure is different than conventional banking in essence, nature and spirit.

He said that interest-based transactions help the wealth to be accumulated in few hands in society and the businesses or entrepreneurs are victimised. This creates imbalance in society due to which the rich become richer and the poor become poorer, the situation may lead to chaos, he added. “Through Islamic banking, we can meet financial needs and requirements of the entrepreneurs,” he added. Quddusi said that all those who believe in Islam must implement junctions of Islam in letter and spirit and ensure fairness in rights and duties of laborers and investors etc.

He said there is a basic difference between capitalism and Islamic financial system. “Capitalism protects wealthy people while Islam wants to ensure protection of laborers and other poor segments of society,” he added.

Originally published on nation.com.pk