This article attributes the prime reason for the underdevelopment of the Arab and Muslim world to the lack of advancement of their financial intermediation systems. We instigate the employment of hybrid financial instruments to re-invigorate their financial architecture. Not only does this solution satisfy the economic efficiency prerequisites, it is also in congruent with uṣūl al-fiqh (principles of Islamic jurisprudence).
Sallehet al. (2013) extends the studies of Iqbal (2010) and Harasani (2013). (Salleh et al.Ibid. Muhammad Mazhar Iqbal ‟Prohibition of Interest and Economic Rationalityˮ Arab Law Quart. 24 (2010): 293–308. Hamid Harasani ‟Analysing the Islamic Prohibition on Ribā: A Prohibition on Substance or Form?ˮ Arab Law Quart. 27 (2013): 289–296.)
Fazlur RahmanIslam and Modernity: Transformation of an Intellectual Tradition (Chicago: University of Chicago Press1982).