Islamic Economics and Finance

This chapter offers a review of the literature on economic theories, those associated with Islamic and Western finance, capitalist economies, and the contrast with Western thinking. To achieve this goal, we focused on the underlying principles of Islamic economics in comparison with other schools of thought and Islamic banks’ problems with some proposed solutions. This chapter will help to comprehend the link between Islam economics, other religions and schools of thought (pre-classical, classical, Marxism, modern, and Chicago) about wealth, social justice, ownership, and related aspects. This chapter brings an understanding of the different problems faced by Islamic banks in practice and derives leading future research questions. This chapter would benefit policymakers, regulators, and financial institutions in resolving the challenges of implementing Islamic finance. Islamic economics and finance would contribute to the struggle of people with religious obligations.