Economics

Leveraging Islamic Finance for Sustainable Development

Jun 2, 2016 Mahmoud Mohieldin

The Middle East’s oil wealth has failed to be translated into broad-based economic development. But the capital that has accumulated in the region’s financial systems could yet play an important role in developing the Muslim world – if Islamic finance is used to its full potential.

WASHINGTON, DC – Roughly one-third of those suffering from extreme poverty worldwide live in member states of the Organization of Islamic Cooperation (OIC). In 21 of those 57 countries, fewer than half of the population has access to adequate sanitation. Four percent of infants born in these countries die before they reach the age of five.

Simply put, despite great potential, many OIC countries have struggled to achieve broad-based development. For many countries, the infamous “resource curse” is at work; in others, weak leadership and failed institutions are to blame. It does not help that the vast majority (some 71%) of the 125 million people affected by conflicts and natural disasters reside in OIC countries. Instability places enormous strain on national budgets.

But these countries have options. In particular, the capital that has accumulated in some of the OIC countries’ financial systems could play an important role in helping them to meet their development goals – especially if Islamic finance is used to its full potential.

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Syed Sadaqat Ali Shah Jun 10, 2016

Dear Sir,
You have written a very impressive article on to fight poverty in the war torn countries and have laid a solution to crisis faced by Muslim countries. I would like to make an addition in this regard. Poverty after all has hit almost every corner of the mother world. Therefore in lieu of limiting such reforms and recommendations to Muslim world would not sort us out. If such reforms are executed by World Bank and its associates at international level overall poverty that has engulfed countries can be reduced to considerable level. We need to fight poverty collectively and mutually. Poverty is not common in Muslim world but is encircling parts of the developed nations too. I expect another article that will take poverty in general, not just for a specific part of the world.
A new reply to this comment has been posted.
Syed Sadaqat Ali Shah Jun 10, 2016

Dear Sir,
You have written a very impressive article on to fight poverty in the war torn countries and have laid a solution to crisis faced by Muslim countries. I would like to make an addition in this regard. Poverty after all has hit almost every corner of the mother world. Therefore in lieu of limiting such reforms and recommendations to Muslim world would not sort us out. If such reforms are executed by World Bank and its associates at international level overall poverty that has engulfed countries can be reduced to considerable level. We need to fight poverty collectively and mutually. Poverty is not common in Muslim world but is encircling parts of the developed nations too. I expect another article that will take poverty in general, not just for a specific part of the world.
A new reply to this comment has been posted.