Pakistan Institute of Development Economics

Building Genuine Islamic Financial Institutions
Publication Year : 2014
Author: Asad Zaman
JEL Classification : E15, G2

Since the spirit of Islam is in stark and violent conflict with the spirit of Capitalism, the form taken by institutions designed to express this spirit must also be different. Capitalist financial institutions are designed to support the process of accumulation of wealth, which is at the heart of capitalist societies. Central to Islam is the spirit of service, and spending on others, which is expressed by diverse, service-oriented institutions, radically different from those dominant in capitalist societies.