Speaking about the world financial crisis, the General Secretary of the organisation, Yamiazul Ulama Sunni of all India, Sheik Ahmed Abu Bakr, said that the crisis could be resolved through the application of Islamic financial principles.
He also pointed out that non-distribution of wealth to promote social well-being was the spark that has provoked waves of violence, political instability, unrest and the growth of racist movements in western countries.
*“We must make efforts to join together the followers of different cultures and religions and alleviate the suffering of people all around the world”*, he said, adding that the *“financial storm”* the world is witnessing is something that is mentioned in religious texts, including the Holy Qur’an.
*“The main cause of this world financial crisis has been usury and interest. The Holy Qur’an guides us to avoid Riba (interest), an evil that is sufficient to put in danger national and international peace and economic stability.”*
*“Living above our means, taking loans with interest and excessive expansion and irresponsibility of credit over a large period as well as gambling are the main causes of this crisis, according to the Islamic perspective. Islam councils against living above one’s possibilities because this leads to excessive debt,”* he explained.
*“Islam promotes loans and other financial instruments, but without interest. The purchase or sale of goods and services on the basis of a mechanism that is backed by interest is not allowed in Islam. Islamic financial principles, nevertheless, do have a minor presence on the global scene.”*
Sheik Abu Bakar indicated that, *“Islamic banking and insurance are still in their infancy and represent a very small percentage of international finance, although many international banks have set up Islamic banking sections.”*
*“The Islamic banking system must be genuine and reflect the ethics of Islamic teaching for the well-being of society. Such a system must be centred on investment in production and not in speculation and gambling.” *
*“The Islamic banking system is gradually gaining momentum in Islamic countries, as leaders with vision have set in motion solid programmes to implement Islamic principles in this new world and so allow stability of the global system,”* Sheik Abu Bakr added.
According to him, society has progressed in all walks of life, including the practice of religious values. *“God will destroy Riba (usury) and will make Sadaqah (charity and social assistance) increase”*, he said, citing the Holy Qur’an.
*“Islamic principles are against unnecessary and superfluous expense and support the increase of savings and investment. The Profit (Peace be unto Him) discouraged the taking of loans with interest, as it could end up a cause of distress and worry for people throughout their whole lives,” he concluded.
