Salman Ahmed Shaikh's Blog, page 2

Islamic Worldview and Sustainable Development: Limits of Legal Compliance and the Need for Ethics

Sustainable development in an Islamic economy is unattainable without the integration of ethics. To stay relevant, it is essential to broaden the interpretation of Shariah compliance beyond mere legal requirements, incorporating maqasid and qawaid to foster positive social and environmental outcomes. Islamic economics and finance are designed to benefit all humanity, not just Muslims, and achieving "Rahmatil alamin" (mercy to all) requires ethics to be deeply embedded in the economy. However, this can only be realized by transforming the mind-set of economic agents from “homo Islamic-legalus” to “homo Islamic-ethicus,” who prioritize ethical decision-making.

Central Bank Digital Currencies Through an Islamic Lens

In Islamic jurisprudence, money (mal) serves primarily as a medium of exchange, a store of value, and a unit of account. Classical jurists such as al-Ghazālī and Ibn Taymīyah stressed that money must not be used for speculative ends or to generate guaranteed returns (riba), nor should it expose transacting parties to undue uncertainty (gharar) or resemble gambling (maysir). Extending these timeless principles into the digital age, a Shariah-compliant CBDC must preserve the objectives of Islamic law (Maqāṣid al-Sharīʿah) by fostering economic justice, preventing harm, and promoting communal welfare.

Moral Reflections on Economics, Vol 5, Issue 9

September 2025 issue (Vol 5, Issue 9) of Moral Reflections on Economics features• "Central Bank Digital Currencies Through an Islamic Lens" by Dr. Ilma Khan, Jamia Millia Islamia, India.• Highlights from Lecture on "Islamic Worldview and Sustainable Development: Limits of Legal Compliance and the Need for Ethics" by Prof. Habib Ahmed, Professor, Durham University, UK.• "The Role of Integrated Value Mediation in ESG Frameworks: Transforming Circular Agriculture within an Islamic Economic Context" by Davi John J S. Palo.• Book review of "Islamic Economics: A Short History" by Dr. Ahmed El-Ashker and Prof. Rodney Wilson.• Research paper in focus on "Relational business model for shared responsibility" by Dr. Josef Wieland and Dr. Jessica Geraldo Schwengber.• Regular sections of reflections, market news, economic and financial indicators and call for papers.

Workshop on New Economics by Prof. Steve Keen at Center of Islamic Economics, International Islamic University of Malaysia

Prof. Keen provided many reasons to be confident in looking at alternatives to neoclassical. The key takeaways are that money should not be seen as a commodity, private debt creation should be within limits and focused on asset creation, government shall put money in productive capacity, limit imports to the limit of exports or thereabout rather than borrowing in foreign exchange and limiting financial sector share in GDP to allow more share in pie to the workers and firms.

Behavioural and Islamic Economics Critique on Mainstream Views on Unemployment: A Joint Perspective

Mainstream economic policies often prioritize short-term goals, such as inflation control and GDP growth, over addressing the root causes of unemployment. This short-sighted approach can lead to unemployment persistence, even during periods of apparent economic growth. By contrast, behavioural economics urges policymakers to adopt long-term and holistic strategies that prioritize social welfare and sustainable job creation, offering a more nuanced and comprehensive perspective on addressing unemployment.

Debunking Economics

Prof. Keen shows the unscientific nature of economics by looking at the notion of diminishing marginal costs required to produce a downward slopping supply curve. He presents a summary of the empirical evidence which contradicts this key assumption of economics. How has economics handled this consistent evidence accumulated over many decades? By ignoring it. This speaks volumes for the way that economics handles contrary evidence to accepted beliefs. Not that this should come as a surprise, given that the notion was originally invented to ensure that neoclassical economics did not suggest that the economy would become dominated by big business (that this was precisely what was happening in the real economy at the time was considered irrelevant). The book also analyses a mathematical flaw in the standard argument against monopolies (often used to justify opposition to large firms). The book questions the conventional theory of the firm, arguing that monopolies can play a beneficial role in the economy.

Towards Understanding Riba (Part II)

Clarity on issue of Riba is so important in Shari’ah that while recognizing change in value due to change in quality, it does not force us to exchange different qualities in equal quantity and yet in case of Amwale Ribuwiah, it does not allow these to be directly exchanged with any excess of weight (quantity) on either side. As generally understood by our scholars, this restriction was essential to stop practice of Riba by hiding behind difference in quality.

Reinstating the Family in ESG: A Tawhidic and Maqasidic Recalibration of Global Governance Frameworks

The omission of the family from ESG frameworks is not a minor oversight—it is symptomatic of a deeper malaise within secular ethics and governance. As Professor Nejatullah Siddiqi once noted, “The preservation of family is not a cultural preference—it is a civilizational necessity.” The Mf-ESG model, with its Tawhidic, Maqasidic, and civilizational foundations, offers a corrective to the ESG paradigm’s moral myopia. It presents a model of sustainability not limited to compliance and metrics but inspired by meaning, purpose, and transcendence.This model deserves further exploration and institutional support through high-level scholarly forums, international think tanks, policy summits, and academic curricula. It bridges theory and practice, faith and governance, offering not only a critique but a constructive framework for a just and flourishing civilization.

Rethinking the Architecture of Ethical Banking

The transition toward sustainability and ethical banking is both timely and necessary. However, its success depends on more than rhetoric or superficial commitments. Without substantive institutional and regulatory reform, the expectations imposed on banks may exceed their structural capacities—threatening financial stability and the long-term viability of ethical finance.

Moral Reflections on Economics, Vol 5, Issue 8

August 2025 issue (Vol 5, Issue 8) of Moral Reflections on Economics features- "Rethinking the Architecture of Ethical Banking" by Prof. Turalay Kenc, Professor, INCEIF University Malaysia.- "Reinstating the Family in ESG: A Tawhidic and Maqasidic Recalibration of Global Governance Frameworks" by Prof. Suhaimi Bin Mhd. Sarif, Professor, KENMS, IIUM, Malaysia.- Towards Understanding Riba by Hifz-ur-Rab.- Book review of "Debunking Economics" by Prof. Steve Keen.- Research paper in focus on "Behavioural and Islamic Economics Critique on Mainstream Views on Unemployment" by Dr. Ekrem Yilmaz. - Reflections on Faith and Science.- Regular sections of market news, economic and financial indicators and call for papers. Download at: https://www.islamiceconomicsproject.c...