To read this content please select one of the options below:

Why is interest prohibited in Islam? A statistical justification

Mohammad Zakir Hossain (College of Commerce and Economics, Sultan Qaboos University, Muscat, Oman)

Humanomics

ISSN: 0828-8666

Article publication date: 30 October 2009

4594

Abstract

Purpose

The purpose of this paper is to present an analytical justification from statistical view point about why Islam has strictly forbidden interest for the humankind.

Design/methodology/approach

It is a theoretical paper that looks into analytical views of justification in order to investigate the motivation of prohibiting interest.

Findings

The results of the paper suggest that interest has a great negative impact on the society, economy and morality of human beings. Analysis found some solid reasons which proved that interest has been really an evil system for the humankind and society as a whole for all times in the history of civilizations. On the other hand, from the statistical information given in the paper it was found that interest‐free financial institutions have been very successful in terms of their deposit, investment, foreign exchange business, financial stability and popularity as compared to the interest based financial institutions.

Research limitations/implications

The impact of interest‐free financial institutions in development financing and in establishing sustainability of a welfare community remains a potential problem due to our shortage and/or lack of proper knowledge.

Practical implications

It is, therefore, very important to be aware of the exact stance of Islam on interest first. Then more extensive networking and complementary relations are needed among the financial and socio‐economic development goals in accordance with the tenets of the Islamic Shariah.

Originality/value

The paper shows its originality in substance and makes a unique contribution to the literature on systems and ethics.

Keywords

Citation

Zakir Hossain, M. (2009), "Why is interest prohibited in Islam? A statistical justification", Humanomics, Vol. 25 No. 4, pp. 241-253. https://doi.org/10.1108/08288660910997610

Publisher

:

Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

Related articles