Erdogan: Islamic Economics Can Bring out of Crisis

Istanbul, MINA – Islamic economics offers a “key” to getting out of the economic woes the world is facing, the Turkish president said on Sunday.

“Excessive funding has created an economic model that is easy to erupt, which only acts in the interest of the profits received, without considering social and human costs,” Recep Tayyip Erdogan told the 12th International Conference on Islamic Economics and Finance via video link.

Despite addressing long-term developments, Erdogan’s statement was motivated by the economic downturn caused by the Covid-19 pandemic around the world.

“To finance long-term large infrastructure investment, the use of products such as sukuk must be expanded,” Erdogan added, referring to Islamic bonds.

“Contrary to what has been promised, the distribution of income and wealth has gradually worsened throughout the world, and the gap between countries is widening,” he said.

“Every crisis that starts in the financial sector quickly spreads to the real sector and creates new lines of unemployment,” he warned.

Earlier this year, Moody’s credit rating agency announced that Turkish sharia banking assets would double in a decade, as government initiatives encourage growth in the sector.

Turkey has positioned itself to be the center of Islamic banking and financial participation. (T/RE1)

Mi’raj News Agency (MINA)