The developmental basis of Islamic banks

Islamic banks are working to achieve the goals of economic development for society through the pursuit of achieving the greatest possible benefit for its members by legitimate and sound means.

Therefore, Islamic banks have contributed in the development plans in the Islamic world by contributing to the establishment and funding of projects in different economic areas: health, education, media, agriculture, industry, in addition to having a distinguished role in the recruitment of accumulated funds, which did not participate in the economic activity because of the reluctance of a large sector of the community to deal with traditional banks. The volume of investments of Islamic banks is estimated by more than 300$ billions, according to the statistics of the General Council for Islamic banks for 2004 [1].

Dr. Mahmoud Al Ansary has summarized the developmental basis in the following points [2]:

1- Applying the Shari`ah of Allah in the society in a way affects the individuals on the social level.

2- Helping an individual to exercise the economic aspect of their eternal Islamic creed.

3- Turning off the conflict which can erupt in oneself as a result of the contradiction of their practical practice with religious beliefs.

4- Providing peace of mind for individuals in terms of their relationship with oneself and their relationship with others.

5- Eliminating contradiction between words and actions in the Muslim personality.

6- Inculcating and deepening the spiritual standards and values for an individual.

7- The result in general is to achieve the internal peace of mind of an individual and the society, which means that the community is going to the status where the conflict will be to the minimum.

From the foregoing, it is clear that "Islamic Bank" is an effective and successful medium for economic development if it is used properly, and the standard of its commitment to the principles of Islamic economy is measured by the extent of its association with the requirements of development.

The goal of recruiting and investing funds to serve the path of economic development and achieve profit at the same time, not multiplying the financial resources to achieve economic (material) profit only, in addition to improving the banking services, upgrading to the level of global competition, innovating modern banking services help to speed up the pace of economic and social development [3].