Turkey can become the centre of Islamic finance: IKAM

During a Conversation with AA about “Islamic Economics and Finance systems” Taha Eğri the director of Islamic Economy Research Centre (IKAM) and Assistant Professor of Kırklareli University; mentioned about the differences between Islamic finance and capitalist economy, participation banking sector and his assessments about Turkey’s potential to be the centre of Islamic finance

Eğri stated that there could be reflections in financial extents of different worldviews regarding the Islamic and capitalist economies; hence similarities in these different systems are possible due to the force of mutual experience of humanity. He continued:

‘’ Capitalist systems only potential alternative is Islamic economy. We are required to fully understand the present economy codes and we need to build an original system regardless of these codes; being an alternative includes a renunciation in itself. We should be able to renounce overconsumption, consumption based on debt, urge to endless needs and over financialization of capitalism.’’

Eğri also mentioned about the importance of the Islamic finance instruments during the Covid-19 crisis and stated that Islamic finance is especially a system that is completely indifferent to speculative finance tools.

”Being the centre of Islamic finance provides political prestige.”

Taha Eğri stated that Istanbul has always been in the limelight throughout the history due to it’s location and he added:

‘’ Today’s system regards finance as political and global power; the fact that Istanbul could be the centre of Islamic finance will certainly reveal political and global power. If Turkey were to be the centre of Islamic finance, it would be a global power. Turkey’s powerful corporate infrastructure is an important opportunity, Turkey has relations with both West establishments and Muslim society and Istanbul will be the junction point thanks to the coordination of these relations. This will provide Turkey with both economic and political prestige; yet more importantly, it provides proliferation of interest-free financial tools. As a result, real economy will be able to easily reach to more real finance.’’

Eğri mentioned, financing that has not have production, does not solve inequalities in society, does not decrease the difference of income and does not enable those who do not have money, most certainly goes against Islamic values.  He added:

‘’The attention towards Islamic economy and finances increases more and more; the number of studies also shows the adaptation toward that trend. The research centres within universities; yet we need more studies that have depth details. Today’s paradigm presenting the global market system has been shaped by the results of the age long intellectual arguments in Europe and the same effort for Islamic economy is required.’’

source: AA / translated by Bazaar Team

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