Islamic Financial Theory in Overcoming Economic Crisis Due to COVID-19 Pandemic

Hamdi Agustin, M. Irfan Rosyadi, Firdaus Abd Rahman, Armis

Abstract

The development of conventional financial management shows that the thinking of capitalism is contrary to Islamic economics based on Al-quran and sunnah (Al-Hadits). It encourages researchers to study and develop Islamic finance theory based on the perspective of Islamic teaching. The purpose of this research is to develop a theory of Islamic finance based on a faith-based concept in overcoming the fundamental problems of the economic crisis due to the Covid-19 pandemic. The technique used in analyzing the data in this study is descriptive analysis. The results show that the foundation for the theory of Islamic finance is faith. Strong faith is seen in the principle of having faith and hope only in Allah Taa'la and limiting the source of reference in Islamic financial matters only based on Al-quran and Sunnah of Prophet Muhammad sallallahu'alaihi Wasallam. Therefore, Islamic finance theory can reject economic teachings and thoughts except economics based on Al-quran and Sunnah of the Prophet sallallaahu'alaihi Wasallam. The theory of Islamic finance is based on the practice of sharia that consists of prohibition of usury, real investment, prohibition of maysir and gharar, and risk sharing. If the strong foundation and sharia are implemented, faith could achieve true Islamic financial theory.

 

 

Keywords: Islamic financial theory, riba, sunnah, COVID-19.

 

 

 


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