Assessment of The Global Financial Crisis: Special Remedies from The Shari’ah Perspective

Abstract

The study investigates some vital courses of the global financial crisis and figured out some important remedies within the context of Shari’ah law. Shari’ah has stipulated market surveillances to ensure strict adherence to the Islamic ethics and trustworthiness in every Shari’ah compatible contractual obligations between individuals and in the public marketplaces. Library research method used to collect information related to the Islamic principles initiated to guide and protect the Islamic financial services providers and institutions from the global financial crisis. Islamic financial system prohibits interest dealings, gambling, excessive risk and sale of debt for debt among others. These are some of the possible mechanisms that used to protect the Islamic financial marketplaces against deceptive activities that actually activate mistrust and panic, which lead to a financial crisis. Islamic business ethics and the Shari’ah principles are the twin factors, which sustained the investor confidence within the Islamic financial institutions. Shari’ah stimulates trustworthiness and business ethics while doing business in an Islamic marketplace. The Islamic principles are projected to serve as shield against cheating, and any kind of deceptive activity in the Islamic business and financial markets atmosphere. In conventional economy some deceptive activities are widespread and they are consequently among the factors that triggered the contemporary financial crisis across the globe. The paper looked at the Shari’ah principles and business ethics as potential measures to averting financial crisis in Islamic finance.