The role of the Islamic financial industry in financing economic development

Experiences of selected countries with reference to Iraq

Thesis submitted by the student

Israa Nezam Aldeen Hussein Al-Taee

To the Council of the Faculty of Administration and Economics – University of Karbala

It is part of the requirements for obtaining the degree of Doctor of Philosophy in Economic Sciences

 Supervision By

Prof.Dr.                                                Prof.Dr.

Safaa Abdul-Jabbar Al-Moussawi               Munadil Abbas Al- Jawari  

Abstract:

The Islamic financial industry provides various financial services in the light of the principles of Islamic law, including the design, development and implementation processes. It is a process of creativity and development of financial financing tools in the Islamic financial market based on the principle of competition, integration, disclosure, awareness, etc. Islamic sukuk are useful as Islamic financial tools in attracting savings and optimal use of economic resources. And its orientation towards economic development, as the largest proportion of the assets of the Islamic financial industry are found in Islamic banks such as the banks of the Middle East, Malaysia and Bangladesh. The research stems from the hypothesis that the Islamic financial industry can play an active role in financing economic development, and in order to test this hypothesis, the research is divided into three chapters: To study the descriptive analysis of the relationship between the Islamic financial industry and the financing of economic development, and it included three sections. The third chapter measured and analyzed the role of the Islamic financial industry in financing economic development, the experiences of selected countries (the practical side) and included three sections.

The results of the standard models were obtained using the ARDL model, which is one of the advanced standard methods, which depends on the time-series test and the model gives results on the nature of the relationship in the short term (error correction model) as well as the long-term results. The research reached a set of conclusions, the most important of which is the existence of a long-term equilibrium relationship as well as the short-term relationship of some variables, as well as the speed of adaptation in Malaysia was very fast, and therefore any imbalance will be corrected within a month and a half, while in Saudi Arabia it takes more than a year to reach equilibrium in the long run.

As for Iraq, it faced many obstacles, which were characterized by the weakness of the banking sector as a result of the security and political instability and thus the instability of the investment environment, which led to structural and organizational problems, and work was reached as much as possible by linking the economy to the principles of Islamic Sharia and the prohibition of financial practices other than Sharia such as coercion to contract but to be Within the controls of Islamic law, and activating financial products that would reduce financial risks such as Islamic financial derivatives and others.

The role of the Islamic financial industry in financing economic development

Experiences of selected countries with reference to Iraq

Thesis submitted by the student

Israa Nezam Aldeen Hussein Al-Taee

To the Council of the Faculty of Administration and Economics – University of Karbala

It is part of the requirements for obtaining the degree of Doctor of Philosophy in Economic Sciences

 Supervision By

Prof.Dr.                                                Prof.Dr.

Safaa Abdul-Jabbar Al-Moussawi               Munadil Abbas Al- Jawari  

Abstract:

The Islamic financial industry provides various financial services in the light of the principles of Islamic law, including the design, development and implementation processes. It is a process of creativity and development of financial financing tools in the Islamic financial market based on the principle of competition, integration, disclosure, awareness, etc. Islamic sukuk are useful as Islamic financial tools in attracting savings and optimal use of economic resources. And its orientation towards economic development, as the largest proportion of the assets of the Islamic financial industry are found in Islamic banks such as the banks of the Middle East, Malaysia and Bangladesh. The research stems from the hypothesis that the Islamic financial industry can play an active role in financing economic development, and in order to test this hypothesis, the research is divided into three chapters: To study the descriptive analysis of the relationship between the Islamic financial industry and the financing of economic development, and it included three sections. The third chapter measured and analyzed the role of the Islamic financial industry in financing economic development, the experiences of selected countries (the practical side) and included three sections.

The results of the standard models were obtained using the ARDL model, which is one of the advanced standard methods, which depends on the time-series test and the model gives results on the nature of the relationship in the short term (error correction model) as well as the long-term results. The research reached a set of conclusions, the most important of which is the existence of a long-term equilibrium relationship as well as the short-term relationship of some variables, as well as the speed of adaptation in Malaysia was very fast, and therefore any imbalance will be corrected within a month and a half, while in Saudi Arabia it takes more than a year to reach equilibrium in the long run.

As for Iraq, it faced many obstacles, which were characterized by the weakness of the banking sector as a result of the security and political instability and thus the instability of the investment environment, which led to structural and organizational problems, and work was reached as much as possible by linking the economy to the principles of Islamic Sharia and the prohibition of financial practices other than Sharia such as coercion to contract but to be Within the controls of Islamic law, and activating financial products that would reduce financial risks such as Islamic financial derivatives and others.