Moral Reflections on Economics

Vol 3, Issue 8, August 2023

“Woe to those that deal in “One amongst you should not

fraud, those who, when they enter into a transaction when
have to receive by measure another is bargaining.”
from men, exact full measure,
but, when they have to give by measure [Sahih Muslim, Book of Transactions,
or weight to men, give less than due. Do Hadith Number 1412e]
they not think that they will be called to
account?”

[Al-Mutaffifin: 1-4]

Inside This Issue “The purely economic man is indeed

close to being a social moron. Economic
 Editorial Note 1
theory has been much preoccupied with
 Climate Challenge by Sara 2 this rational fool.”
 IEP Public Poll Results 5
 Book Review 6 Richard Thaler, Nobel Laureate,
 Research Paper in Focus 9 Misbehaving
 Reflections on Scientism 10
 Market News 12
 Economic Indicators 14
 Call for Papers 17

Effects of Islamic Inheritance Laws on Wealth Inequality

Salman Ahmed Shaikh

In an interest based financial system, However, in non-commercial loans and

wealth inequality automatically results in
income inequality with legal
permissibility of risk-less earnings for the
lender.
There is an automatic transfer of wealth
at a predetermined rate from the
borrower to the lender. If the borrower
takes commercial loans, then only if it
earns profit above the rate of interest, it
may avoid decrease in wealth.
where commercial loans yield less returns
than the rate of interest, the borrower
suffers decrease in wealth.
Hence, wealth inequality perpetuates and
concentration of wealth increases in the
society with the passage of time.
More sophisticated the interest based
financial system, more is the expected
income inequality and empirical evidence
also suggests that.

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 1


Wealth and income inequality has
increased in almost all countries that have
higher penetration of interest based
financial system. Even in developed OECD
countries and consistently growing
emerging economies like China and India,
income inequality has steadily gone up.
Income inequality in OECD countries is at
its highest level for the past half century.
The average income of the richest 10% of
the population is about nine times that of
the poorest 10% across the OECD, up from
seven times 25 years ago.
Besides the system of Zakat and
prohibition of interest in an Islamic
economic framework to check inequality,
we also have Islamic inheritance laws
which ensure that the wealth of the
deceased is distributed widely among the
members of the family of the deceased in
every generation. That is a dynamic check
on wealth inequality.
In Islamic inheritance laws, inheritance is
distributed in diverse set of relations. The
inheritance is shared between the parents
of the deceased, spouse of the deceased,
the children of the deceased (male and
female included), and in some cases, it
Dealing with Climate Challenge
By Sara Sharieff
IBA Karachi Alumnus, MS Economics
Summer appears with full intensity in
many parts of the world. The inhabitants
of some of these regions are able to ward
off its blows easily while for others, the
season is a real challenge.
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
could also include other relatives
including the siblings.
Islamic inheritance laws in Islamic
economic framework have the potential
to permanently and systematically reduce
the concentration of wealth in every
generation at the most micro level
possible. Hence, when the wealth
distribution gets equitable, the income
distribution too is expected to become
more equitable. In an Islamic economic
framework, the wealth can only be
invested in productive enterprise amidst
the prohibition of interest based earnings.
What expedites this investment is the fact
that if wealth is not invested in a
productive enterprise, wealth Zakat
would automatically take the part of idle
wealth from the wealth owner and
distribute it in society among the people
who need it and who can make effective
use of it.
Thus, not only the income and wealth
distribution become more equitable, the
efficiency in the use of productive
resources could also increase in an Islamic
economic framework.
Figue below illustrates the poorer
countries that are facing the hottest
climate. They face hostile climate
conditions which hamper their
productivity, health and agility.
2
 The Poorest Hottest Countries in the World
Average Maximum Temperature during the six

41.00 Sudan
Mauritania
Niger Mali South Sudan
Senegal
hottest months in 2021 (℃)

39.00
Gambia Algeria
Chad Guinea Bassau
Benin Djibouti Egypt
37.00
Burkina Faso Nigeria
Ghana
Yemen Togo
Cote d'Ivoire Iran
Syria Guinea Pakistan
35.00 Jordan
India Tunisia
Sierra Leone
Bangladesh
33.00 Central African
Somalia Republic

31.00
450
Nonetheless, climate challenge is not just
a phenomena impacting the poor. The
Middle Eastern countries, South East Asian
countries and some countries in Far East
700 950 1,200 1,450 1,700 1,950 2,200 2,450 2,700 2,950 3,200 3,450 3,700 3,950 4,200 4,450 4,700
GNI per capita in 2022 (USD - Atlas Method)
…
also face the climate challenge. It affects
health, biodiversity and even food
production and availability.

The Richest Hottest Countries in the World

Average Maximum Temperature during the six

44.00 Kuwait
United Arab
42.00 Bahrain Emirates Qatar
Iraq
hotesst months in 2021 (℃)

40.00
Oman

38.00 Libya Saudi Arabia

36.00 Thailand
Turkmenistan Aruba
34.00 Australia
Elsalvador
Paraguay
32.00
4,500 14,500 24,500 34,500 44,500 54,500 64,500 74,500
GNI per capita in 2022 ( USD - Atlas Method)

Source: climateknowledgeportal.worldbank.org and data.worldbank.org

The graphs above illustrate the 43 hottest The first graph depicts countries which as
countries in the world, where the average per the World Bank are clubbed as the
maximum temperature during the six lower-income and lower-middle-income
hottest months exceeded 33 ℃ in 2021. economies. To be more specific, where
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 3
the average annual income earned by the
resident of the country is less than
$4,465.
The countries located in the northwest
portion of the graph, namely Chad, Niger,
Sudan, Mali, and Gambia deserve special
attention. They have low levels of income
accompanied by exorbitantly high
temperatures. One can assume that with
such meager incomes, they cannot afford
a temperature-ameliorating lifestyle, for
example, the luxury of air-conditioners.
It would be worthwhile to take a look at
the electricity prices prevalent in these
countries. As per 2021 data released by
cable.co.uk, save for Sudan, electricity in
Chad, Niger, Mali, and Gambia is quite
costly, in fact, costlier than in Pakistan.
In Pakistan, the electricity price is $0.081
per kilowatt hour (kWh) while in Chad,
Niger, Mali, and Gambia, it stands at
$0.174, $0.117, $0.375, and $0.20
respectively. These regions can be termed
as the most climatically-challenged
countries with people facing average
maximum temperatures between 37℃
and 41℃ and with no possibility of using
electricity generously.
Low electricity prices are not a sufficient
condition. In Sudan where electricity
rates are only $0.014 per kWh, only 33% of
the population has access to electricity.
There are more countries that are fighting
the climate battle. Burkina Faso, Yemen,
Togo, and South Sudan are all poor
countries with average maximum summer
temperatures between 35 ℃ and 37 ℃.
Electricity is quite expensive in South
Sudan ($0.36 USD per kWh) – one of the
highest rates in the world. For Burkina
Faso and Togo, the per kilowatt hours
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
rates are $0.22 and $0.14 respectively.
Air conditioners must surely be a
commodity only the rich can afford with
ordinary people only skimping on their
electricity consumption.
The rest of the countries in the graph are
not posing a bright picture either. In
Mauritania, the average maximum
summer temperature was close to 40℃. A
GNI per capita of $2,160 puts Mauritania
in the category of a lower-middle-income
country. Electricity tariffs are $0.13 per
kWh, higher than $0.081 per kWh in
Pakistan. Life must be challenging for
anyone not able to fend off the summer
strikes.
What about Pakistan, India, and
Bangladesh? Which country is more
livable, summer-wise? Bangladesh has a
GNI per capita of $2,820, higher than
India’s $2,380 and Pakistan’s $1,580. The
average maximum summer temperature
in Bangladesh in 2021 was 32.71℃, lower
than India’s 33.64℃ and Pakistan’s 34.61
℃.
Moreover, electricity is the costliest in
India among the three with a per kilowatt
hour rate of $0.092. In Pakistan and
Bangladesh, it rounds off to $0.081 and
$0.08 respectively. At least as per these
numbers, Bangladesh ranks better on the
climate scale than the other two.
Now, let’s take a look at the other graph
which illustrates the 14 hottest richest
countries in the world. Saudi Arabia,
Qatar, Kuwait, United Arab Emirates, and
Oman have average maximum
temperatures between 39℃ and 43℃.
These high numebrs do not create havoc
in the lives of people given the rich living
standards. The electricity prices are one
of the lowest in Kuwait ($ 0.033 per kWh),
4
 Qatar ($0.036 per kWh), Bahrian ($0.045
per kWh), and Oman ($0.052 per KwH).
Having spent a big part of my childhood in
Jeddah, Saudi Arabia, I can recall our 24/7
consumption of air-conditioners. The
affordability of electricity in Saudi Arabia
in the 90s was our bastion from the
blazing sun outside.
The plight of these people is a difficult
thing to put an end to considering the
complexity of the availability and
affordability issues of electricity. Of the
fossil fuels, coal is the least expensive.
Nearly all renewable energy resources like
wind and solar are relatively inexpensive.
An ideal situation would be where the the
governments subsidize production
through cheap sources and distribution of
electricity and purchase/maintenance of
air-conditioners but this is a utopian
IEP Public Poll
In July 2023, Islamic Economics Project
held a public poll on its Facebook Page.
Question in the poll was “Would you
prefer to use Islamic banking options for
your banking needs if they cost the same
as conventional banking products?”.
Options were:
 Yes, regardless of cost
 Yes, if cost is same as conventional
 Yes, only if cost is less than conventional
 No, even if cost is less than conventional
A close to 200 people voted in the poll.
Answers are illustrated in the graph
below. It is interesting to note that most
people are open to Islamic banking and as
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
thought. The governments in developing
countries are already facing huge debts
and almost always running fiscal deficits.
Because of mere fate, a lot of people in
the world, including Pakistan, have ended
up in a position where they bear the
torment of heat without much to do about
it. They can not operate air-conditioners
even when the temperature flares up and
beyond the 35℃. Many do not even have
one.
“A man has only a certain capacity for
battling with fate’, said Wodehouse. Well!
this capacity is amazingly high in some
people. But, there is still a long waiting
period.
many as 78% people are even willing to
use Islamic banking services regardless of
cost. For them, Shariah compliance
matters more and they are strongly faith
conscious rather than price conscious.
As many as 91% people would use Islamic
banking if the cost is not more than
conventional. There are only 9% people
who are price conscious in their approach
towards Islamic banking. Only 1% people
would hold a negative perception about
Islamic banking and do not give it a try
even if it is price competitive.
Hence, the poll shows that people largely
have readiness to use Islamic banking if it
5
is offered to them. If it is price
competitive, it can attract more than 90%
of the people.

IEP Poll Results

No, even if cost is less than conventional 1

Yes, only if cost is less than conventional 8

Yes, if cost is same as conventional 13

Yes, regardless of cost 78

0 10 20 30 40 50 60 70 80

Book Review

The Prophet Muhammad (PBUH) – A

Title:
Simple Guide to His Life

Author: Maulana Waheeduddin Khan

Publisher: Goodword Books

In this book, the author introduces the life
of Prophet Muhammad (pbuh) to an
audience who is looking for a brief
introduction and peel into His personality,
character, wisdom and teaching rather
than in terms of the minute details of His
biography.
There are many books on the life of
Prophet Muhammad (pbuh) available in

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 6

many languages. The earlier books were
detailed and focused more on socio-
political struggles and events in the life of
Prophet Muhammad (pbuh). Indeed, such
books reveal many insights and lessons.
Nonetheless, the personality of Prophet
Muhammad (pbuh) transcends many roles.
He (pbuh) was a highly successful political
leader, legislator, and military
commander. But, these are one of the few
aspects of His personality. Qur’an
introduces Prophet Muhammad (pbuh) as
having best morals.
Therefore, to a contemporary person, it is
important to learn the key insights from
His personality, character, wisdom,
approach towards struggles of life and
dealing with adverse circumstances.
In this way, all people living even in
present age can relate to Him and also
take guidance and insights from His life.
This seems to be the main aim of the
book.
In the first chapter, the author gives a life
sketch of the Prophet’s (pbuh) life with
mention of key events which happened in
His life. After that, the author illustrates
the personality and character of Prophet
Muhammad (pbuh) through the various
narrations and Quranic verses.
Prophet Muhammad (pbuh) had
exemplary patience. He (pbuh) lost His
father and mother very early in life. He
(pbuh) was a keen seeker of truth
throughout His life. He (pbuh) was always
honest with everyone, so much so that
everyone trusted Him. He (pbuh) was
known as the Sadiq (truthful) and Ameen
(trustworthy).
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
He (pbuh) lived modestly. Before and
after the political rise, His lifestyle did
not change. Infact, for the propagation of
Islam, He (pbuh) cut down His time in
successful entrepreneurship. He (pbuh)
faced persecution with resolve.
Author gives several examples that how
Prophet Muhammad (pbuh) avoided
confrontation and resorted to peace
whenever possible. Even when He (pbuh)
could take revenge from the persecutors,
He (pbuh) did not. He (pbuh) showed
inclusivity.
In Meesaq-e-Medina, He (pbuh) provided
many rights to non-Muslim Jews in the
Islamic state. The later stance of caution
was only due to them taking treacherous
route against the State and Muslims not
once, but three times.
At the time when Muslims got political
ascendancy, He (pbuh) still preferred
peace if it was offered by the other side.
He (pbuh) accepted unequal terms in
Hudaibiya and avoided confrontation. He
(pbuh) preferred peace and
reconciliation. Even before obtaining
Prophet hood, He (pbuh) showed his
wisdom in reconciliation on the occasion
of placing Hajr-e-Aswad in Holy Kaaba.
Even at the conquest of Makkah, He
(pbuh) entered with His head down in
thankfulness to Allah.
Prophet Muhammad (pbuh) is one man in
history, whose acts and speech matched
perfectly and at all times. He (pbuh) said
that ‘accustom yourselves to do good if
people do good, and do not do wrong even
if they commit evil’.
He (pbuh) preached excellence in moral
behaviour. He (pbuh) said: “A person who
does not keep his promise has no
7
religion.” He (pbuh) also said: “Speak that
what is good, otherwise remain silent”. In
one narration, He (pbuh) said: “Kindness
is a mark of faith, and whoever is not kind
has no faith.” He (pbuh) also said: “Best
among you are those who have the best
manners and character”.
He (pbuh) was so humble that He (pbuh)
would be the first to greet anyone He
(pbuh) met even if it was a child. He
(pbuh) said: “A true believer does not
taunt or curse or abuse or talk
indecently.” He (pbuh) preached in last
Hajj sermon that everyone is equal. Race,
gender, wealth and social status do not
matter.
Some of the non-Muslim contemporaries
of Prophet Muhammad (pbuh) used to
tease Him (pbuh) during His life. Qur’an
mentions that people who did not believe
in Prophet Muhammad (pbuh) called upon
Prophet (pbuh) in words which had dual
meanings and their hearts implied the
meanings which tease (2:104). God forbid,
they used to call Prophet (pbuh) a poet,
fore-teller and magician (69:41-42). God
forbid, they even called Him (pbuh) as
mad (15:6) and Muftari, i.e. forger or liar
(16:101).
Qur’an denies these claims and mentions
that Prophet Muhammad (pbuh) was on an
exalted standard of character (68:4) and
sent as blessing for all worlds (21: 107).
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
He (pbuh) was greeted with garbage
thrown by a lady. When she did not do
that on one day due to illness, He (pbuh)
went to her home and inquired her health.
He (pbuh) was stoned till His feet were in
blood in Taif, isolated to live in the valley
of Shi'b Abi Talib and forced to live in exile
yet He (pbuh) asked Allah’s mercy for the
people.
He (pbuh) was keen well-wisher of people
and make them get close to Allah. He
(pbuh) did not seek or demand any
personal gain. In fact, He (pbuh) forgave
everyone if they would come to the path
of following One Creator. He (pbuh) even
forgave the woman who massacred the
body of His beloved uncle.
All in all, this book is a good introduction
to the personality, character and wisdom
of Prophet Muhammad (pbuh) to illustrate
how He (pbuh) exhibited patience,
resolve, modesty, leading by example,
reconciliation, inclusivity, equity, justice,
benevolence, kindness, honesty, well-
wishing and God-consciousness both in His
teachings and His conduct of life.
8
 Research Paper in Focus
Paper Title: How Diverse are Shariah Supervisory Boards of Islamic Banks? A Global
Empirical Survey
Author: Omar Kachkar and Mustafa K. Yilmaz

Publisher: International Journal of Ethics and Systems, Vol 39(2), 312 – 341

This study aims to examine diversity in the diversity as a requirement in SSBs are
composition of Shariah supervisory boards almost non-existent in the existing
(SSBs) of Islamic banks (IBs). regulatory frameworks and standards.

It investigates diversity from two Corporate governance in Islamic financial

perspectives: existing composition of SSBs
and the regulatory frameworks and
standards of selected Organisation of
Islamic Cooperation countries. Diversity
characteristics include education,
nationality, gender and age.
The available profiles of 428 SSB members
in full-fledged Islamic commercial banks
have been scrutinised and analysed.
These board members occupy 522 SSB
positions in 238 institutions operating in
52 countries around the globe. From the
regulatory perspective, 12 national and
international Shari’ah governance
frameworks and standards have been
examined.
institutions is a critical issue. Number of
experts with requisite expertise in Islamic
studies and financial markets are very
small in number. Given the growth in
Islamic finance industry globally
especially in private sector, there is gap
in demand and supply of quality Shari’ah
experts.
There is also an issue of conflict of
interest. Some Shari’ah board members
are part of both commercial institutions
as well as regulatory bodies. It creates a
clear conflict of interest. It is also
common that a single Shari’ah advisory
board member provides similar services to
the industry at large.

Findings indicate various levels of It happens specially if the expert is well-

diversity in SSBs of the reviewed IBs. The
level of diversity in educational
background and in the nationality of SSBs
can be described as generally acceptable.
However, a lack of diversity in gender and
age among SSB members is evidently
observed in IBs.
While the lack of age diversity in SSBs may
be relatively justified as a common trend
in the composition of corporate boards,
SSBs of IBs are seriously lagging behind in
gender diversity. On the regulatory level,
this study concluded that provisions on
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
respected and people trust him more than
others. In that case, even if there are
other experts with similar education and
expertise, they are less well-regarded
under the tutelage of the more famous
and experienced expert.
Compensation and contract design is also
a critical issue. If the Shari’ah board
member is on the payroll of a commercial
institution it is serving on full-time basis,
then it becomes awkward to ensure
objectivity and non-partiality.
9
Even if the Shari’ah board member is
impartial, the recommendations may or
may not be given due importance and
weightage if the governance mechanism is
weak and the recommendations are not
fully binding and taken as final. One
alternative approach is that the
regulatory institutions shall compensate
the Shari’ah experts fully or partially and
this can help in reducing conflict of
interest.
Gender diversity is also a big issue,
especially in South Asian regions like
Afghanistan, Pakistan and Bangladesh.
Even in other regions, very few female
Shari’ah experts are available, except in
Malaysia and some other regions.
In South Asia, one reason is lack of
specialization courses in female religious
schools. One potential solution could be
to allow women from academic
institutions to be part of Islamic financial
institutions if they possess the required
expertise.
AAOIFI had also launched Certified
Shari'ah Adviser and Auditor (CSAA)
certification which is open to both male
and females. If such certifications are also
Reflections on Scientism
Science cannot generate a ‘worldview’.
Huston Smith contends in his book
“Beyond the Postmodern Mind”: “world
implies whole and science deals with part,
an identifiable part of the whole that can
be shown to be part only” [1].
Scientific knowledge is a special kind of
knowledge, precise in its details but
extremely restricted in its scope. The
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
deemed permissible as evidence for the
candidate to have requisite skills and
expertise, then more women can be taken
on board. It is because reforming the
educational system and introducing
specialization in female religious schools
would require more efforts and time.
Given the huge disparity that exist in
gender diversity, regulators may also take
the route of making it mandatory to have
at least one female Shari’ah board
member. This has been the standard
practice done in corporate governance
globally to allow some balance in an
otherwise almost all male-dominated
boards.
Lastly, at a strategic level, it is important
to build trust for creating readiness in
public about the use of Islamic banking.
This requires sound governance
framework. A diverse board avoiding
conflict of interest and representing
broader segments of society with a
common minimum expertise of Islamic
finance can help in achieving consensus.
boundaries of science are drawn by itself.
It is an enterprise limited to the
quantitative study of the physical world.
In this undertaking, natural sciences excel
and show great prowess.
Science becomes scientism and turns into
poor philosophy when these boundaries
are obliterated.
10
A descriptive theory might or might not
adequately describe the physical process,
but if it transcends boundaries of physical
explanations and starts giving
philosophical meaning of the reality, then
the latter endeavour is not within the
scope of science.
Theory of evolution might be an
admissible scientific explanation of the
physical process if the evidence supports
it, but the Darwinian view of life beyond
biology and into social organization is a
philosophical conjecture.
Evolutionary biologist Kenneth Miller has
argued that when scientists make claims
on science and theism or atheism, they
are not arguing scientifically at all and are
stepping beyond the scope of science into
discourses of meaning and purpose.
What he finds particularly odd and
unjustified is in how atheists often come
to invoke scientific authority on their non-
scientific philosophical conclusions like
there being no point or no meaning to the
universe as the only viable option when
the scientific method and science never
have had any way of addressing questions
of meaning or lack of meaning, or the
existence or non-existence of God in the
first place [2].
The Creator in faith’s perspective is the
source of all physical and non-physical
stuff and the laws which govern matter
and the physical processes which convert
matter into different inorganic and
organic forms. He gave consciousness to
human beings like He gave to all living
things. We may have evolved into the
specie we are.
ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023
Like other living beings, our bodies are
made up of matter that exists in the
universe. Our biological body is a
chemical composition. Faith essentially
addresses not our chemical composition of
bodies, but our personality and
consciousness. Soul is embodied in our
skull. Our physical body is made up of
chemicals. Body is just the host of our
soul. Animals also have bodies and some
have similar chemical composition as ours
in some respects.
But, our soul is given the innate and strong
ability to differentiate right from wrong
actions. We have likeness for and the wish
to see fairness, justice, honesty,
truthfulness and cooperation in the
universe where species survive on survival
instincts. These values reflect in our art,
prose and poetry.
If the feelings, emotions, aesthetics,
values and morality are merely a chemical
mixture, then our labs shall be producing
Shakespeare, Rumi, Iqbal and Picasso just
through chemistry experiments without
any human intervention, instruction and
programming.
References
[1] Smith, H. (2003). “Beyond the
Postmodern Mind: The Place of Meaning in
a Global Civilization”, Wheaton: Quest
Books.
[2] Miller, K. R. (1999). “Finding Darwin's
God: A Scientist's Search for Common
Ground between God and Evolution”. New
York: Harper Perennial.
11
 Market News
 Share of Islamic banking to continue growing (The News, July 18).

 UAE: Demand for Shariah-compliant financing remained strong, with growth of

4.9% in 2022, taking total financing to $146.15 billion (Zawya, July 15).

 Islamic finance market to experience strong growth during the forecast period
2023-2030 (EIN News, Aug 03).

 Islamic finance to rapidly grow, reach $7.7 Trillion by 2025 (Pakistan Observer,
July 14)

 SBP raises Rs 191.3 billion through Sukuk Auction – Mettis Global Link (Mettis
Global News, Aug 04).

 Sukuk pricing remains similar to bonds in H1, says Fitch (Gulf Business, Aug 04).

 CBB Sukuk Al-Ijarah oversubscribed (Zawya, Aug 01).

 Saudi Arabia closes July Sukuk issuance at $700 million (Arab News, July 26).

 NGX lists FG N130 billion Sukuk bond (Punch, Aug 04).

 Current trend of Sukuk, bonds pricing may persist: Fitch (straight Times, Aug 03).

 Nigeria’s DMO lists $167 million Sukuk to boost capital markets (Zawya, Aug 03).

 Global outstanding Sukuk volume exceeds $800 billion in Q2 2023 (Zawya, July
14).

 Turkey dollar bonds surge on UAE plan to wire billions via Sukuk (Bloomberg.com,
July 20).

 Outstanding Sukuk volumes break the $800 billion barrier: Fitch (Zawya, July 14).

 Emirates Islamic wins ‘most innovative Sukuk’ award at the Islamic banking
awards 2023 (Zawya, July 24).

 Saudi Arabia’s Almarai starts sale of dollar Sukuk (Zawya, July 18).

 UAE likely to launch more local currency Sukuk, says S&P (Zawya, July 14).

 DMO lists N130 billion Sukuk on NGX, FMDQ to strengthen capital market
(Thecable.ng).

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 12

  Amidst fuel subsidy removal, NASFAT shares N103 million Zakat proceeds among
Nigerians (The Guardian Nigeria, Aug 05).

 Gov Radda to set up multimillion-naira Zakat commission in Katsina (People

Gazette, Aug 01).

 Harnessing fintech for the next generation of Islamic finance (World Finance,
July 26).

 Malaysia’s approach towards nurturing innovation-driven islamic fintech

ecosystem (Fintech News Malaysia, July 21).

 ADIB Egypt to launch country’s 1st Shariah-compliant microfinance firm (Pakistan

Observer, Aug 04).

 Al Huda CIBE and FDO signed an agreement to set up Islamic Microfinance

Window Operation (Zawya, July 18). 3.

 Kashmir needs accountable Islamic microfinance institutions to boost local

business ecosystem (Kashmir Reader, July 26).

 Nigeria eyes $25 Trillion Global Takaful insurance market in 2025 (Daily Trust,
Aug 02).

 Global Takaful market projected to reach $45.95 billion by 2027, driven by

technological advancements and increasing Muslim population (Yahoo finance,
July 14).

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 13

 Economic and Financial Indicators

Islamic Banking Statistics 2013-2022

Gross Net Profit Cost to

Country CAR ROA ROE
NPF Margin Income
Bahrain 18.7 10.8 1.0 7.8 25.6 71.1
Bangladesh 11.5 4.5 1.3 23.5 33.3 43.8
Brunei 20.2 5.0 1.6 12.1 52.0 45.1
Egypt 15.24 7.25 2.62 42.08 58.76 30.91
Indonesia 18.4 4.1 1.3 11.8 13.9 86.1
Jordan 22.3 2.8 1.8 18.3 49.3 50.7
Kuwait 17.8 2.5 1.2 11.0 22.1 32.5
Malaysia 16.7 1.4 1.0 15.0 38.9 39.7
Morocco 20.6 0.2 -3.7 -26.2 -252.8 349.7
Nigeria 30.2 4.3 1.1 12.1 10.5 82.0
Oman 28.5 0.7 -0.8 0.1 -29.6 113.9
Pakistan 15.0 5.0 1.5 24.7 32.2 65.5
Palestine 16.8 2.3 1.0 9.5 24.2 69.6
Qatar 18.0 1.3 1.1 11.0 40.8 13.3
Saudi Arabia 20.1 1.2 2.2 16.4 49.5 49.6
Sudan 15.3 5.1 2.8 41.8 55.9 40.8
Turkey 16.5 4.0 1.3 15.5 21.0 43.3
UAE 17.2 6.3 1.4 11.4 32.0 50.5

Source: IFSB Data

ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 14

 Islamic Capital Market Investments

Measures / Groups Annualized Return (%) Annualized S.D (%) Coefficient of Variation

Stable Income Investments

Sukuk 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22

S&P MENA Sukuk Index 2.67 3.96 0.69 1.94 1.63 2.45 0.73 0.41 3.55

S&P GCC Sukuk Index 2.96 4.45 -0.44 2.03 1.77 2.52 0.69 0.40 -5.70

Bond 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22

S&P MENA Bond Index 2.71 5.09 -2.79 3.89 2.48 5.97 1.43 0.49 -2.14

S&P GCC Bond Index 2.80 5.24 -2.76 3.97 2.52 6.09 1.42 0.48 -2.20

Equity Investments
Islamic 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22

S&P 500 Shariah 12.04 12.30 11.35 18.03 13.27 26.75 1.50 1.08 2.36

S&P Europe 350 Shariah 7.26 8.83 3.18 15.38 13.60 19.27 2.12 1.54 6.07

S&P 500 ESG Shariah 11.92 11.50 13.00 18.15 13.15 27.22 1.52 1.14 2.09

Dow Jones Islamic GCC 4.25 2.07 10.13 12.82 12.44 13.79 3.02 6.00 1.36

Conventional 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22 2013-22 2013-19 2020-22

S&P 500 11.16 11.98 9.00 17.30 12.83 25.56 1.55 1.07 2.84

S&P Europe 350 5.20 6.80 1.03 16.56 14.44 21.10 3.18 2.12 20.40

S&P 500 ESG 11.41 11.77 10.46 17.34 12.77 25.73 1.52 1.08 2.46

Dow Jones GCC 4.58 2.69 9.68 12.04 11.36 13.72 2.63 4.22 1.42

Source: SP Dow Jones / Working by Research Desk

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 Global Economic Perspectives June 2023
Projections for Real GDP Growth for 2023, 2024 and 2025

Country 2023f 2024f 2025f

Algeria 1.7 2.4 2.1
Bahrain 2.7 3.2 3.1
Bangladesh 5.2 6.2 6.4
Benin 6 5.9 6.1
Burkina Faso 4.3 4.8 5.1
Chad 3.2 3.4 3.1
Comoros 2.8 2.9 3.6
Côte d'Ivoire 6.2 6.5 6.5
Djibouti 4.4 5.4 5.9
Egypt 4 4 4.7
Gambia 5 5.5 5.8
Guinea 5.6 5.8 5.6
Guinea-Bissau 4.5 4.5 4.5
Iran 2.2 2 1.9
Iraq -1.1 6 3.7
Jordan 2.4 2.4 2.4
Kenya 5 5.2 5.3
Kuwait 1.3 2.6 2.4
Lebanon -0.5
Maldives 6.6 5.3 5.9
Mali 4 4 5
Mauritania 4.5 5.6 6.8
Morocco 2.5 3.3 3.5
Mozambique 5 8.3 5.3
Niger 6.9 12.5 9.1
Nigeria 2.8 3 3.1
Oman 1.5 2.8 2.6
Pakistan 0.4 2 3
Qatar 3.3 2.9 3.1
Saudi Arabia 2.2 3.3 2.5
Senegal 4.7 9.9 5.2
Sierra Leone 3.4 3.7 4.4
Suriname 2.4 3.2 3.1
Syrian Arab Republic -5.5
Tunisia 2.3 3 3
United Arab Emirates 2.8 3.4 3.4
West Bank and Gaza 3 3 3
Yemen -0.5 2

Source: World Bank Global Economic Perspectives, June 2023

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 Call for Papers
6th International Finance Conference, Hammad Bin Khalifa University
Advancing Ethical and Sustainable Economy
https://www.hbku.edu.qa/en/ICIF23

9th International Islamic Monetary Economics and Finance Conference (9th IIMEFC)
25th – 26th October 2023 (Hybrid Mode - Online and in Person), Jakarta – Indonesia
https://submit.confbay.com/conf/iimefc2023

7th World Islamic Economics and Finance Conference (WIEFC 2024)

27 & 28 January 2023, Minhaj University Lahore, Pakistan
https://submit.confbay.com/conf/wiefc2024

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ISLAMIC ECONOMICS PROJECT|MORAL REFLECTIONS ON ECONOMICS|VOL 3, NO 8 AUG 2023 17