The Role of Islamic Financial Institutions in Economic Development

Abstract

The process of economic development requires long-term capital. In response, Islamic financial institutions cannot finance medium and long-term investments due to the lack of available balances. The ideal solution to support and achieve economic development in Islamic countries is through mobilizing savings from the owners of the financing surplus, and directing it towards the owners of the financing deficit to convert it into various investments and productive and vital projects that contribute to the process of economic development. The researcher has adopted the method of descriptive, inductive and historical analysis when dealing with the issue of the role of Islamic financial institutions in achieving economic development. The study is divided into an introduction and two sections, the first section includes (the role of Islamic banks in economic development) and the second section includes (the role of Islamic financial markets in economic development).