Paper Title: A Reflection of Divine-based Islamic Economics (D-BIE)

Author:        Mustapha Hamata, Mohamed Aslam Mohamed Haneef, Mustafa Omar Mohammed, Salina Kassim

Publisher:    Journal of Islamic Finance Vol. 12 No. 1 (2023) 109 – 115. 

This paper provides reflection on Islamic economics and rightly concludes that a lot of work needs to be done in providing distinct story of why financial and economic crises happen and what Islamic economics can offer through its principles, values, instruments and markets.

Unfortunately, what we can and do offer through markets is Islamic finance. The modes of financing in practice provide a faith-compliant substitute, but which is a nearly perfect economic substitute with similar economic substance. 

Arguing distinction through markets and instruments looking at current practice is like inviting same criticism on sef which is put against the other competing systems which we have been criticing under the literature on Islamic economics.

There is a need to move from mere condemnation and rhetoric to substance in practice or even in theory by offering a new positivistic story that can be told and justified based on commonly acceptable empirical evidence.

Shortcomings on that front is now leading to repeattition of arguments and disappointment among the segment of society that held high aspirations.

Even though the authors do not mention it, but now even the top journals in the field are finding it hard to receive novel research ideas or even empirical researches covering fresh unexplored evidence.

The race in academia regarding publishing in impact factor journals has shifted the focus from deep theoretical, philosophical, critical and comparative to empirical researches in the area of banking, asset management, asset pricing and investments.

Such research literature can at best be described as a contribution in mainstream economics. Difference is not in methodology, but in markets. Furthermore, the market practice is finding it hard to distinguish itself from the large conventional financial system in a dual financial system.