The Development of Islamic Economics in Various Parts of the World Introduction

THE DEVELOPMENT OF ISLAMIC ECONOMICS IN VARIOUS PARTS OF THE WORLD MEIRISON Universitas Islam Negeri Imam Bonjol Padang E-mail: [email protected] Abstrak The theme of the article is "economy based on the principles of Islam". In the Famous Hotel in heart of London, England, is full of bankers, lawyers, and top world investors. Those who come from various countries in Asia, Europe, and the Middle East, make mutual offers, and many end up on signing the deal. One country absent on this event: USA. Islamic finance - which became increasingly global after Britain adopted it - has grown tremendously over the past decade. This economic system has attracted all key international players, leaving the United States in the increasingly profitable global industry. According to the report, 2016 saw new trends across the various sectors of the Islamic economy. In the halal food sector, which saw Muslim spending reach 4 trillion dirhams ($ 1.1 trillion) in 2014, new partnerships have been forged between countries such as the UAE, South Korea, Malaysia, Indonesia and South Africa. Sukuk listings in Malaysia and the UAE have also contributed to the growth of the Islamic finance sector, which grew to 6.6 trillion dirhams ($ 1.8 trillion) in 2014, helped by regional initiatives such as the UAE-Bahrain partnership and Avriland First launched the first Islamic window in Cameroon. Keywords: Development, Economics, Islamic INTRODUCTION The most concrete example was in 2004, Islamic Finance and Islamic Economics are Britain became the first non-Muslim country economic phenomena that have recently been to implement this system by establishing the warmly discussed again in the dynamics of the first sharia-based bank on European soil and global economy. Previously these two things among Western countries, the Islamic Bank of are only firmly attached to the Islamic world, Britain (IBB). Britain is not a Muslim country. including the Middle East region which the However, Queen Elizabeth's country is listed majority are Islamic countries. Today, Islamic as the most developed country in terms of economics and finance begin to be studied Islamic economics. There are several campuses and even applied by non-Muslim majority that open a special field of Islamic economics, countries or non-Muslim countries. one of them is Durham University. The implementation of Islamic economics No wonder if Indonesian students who and finance is characterized by the opening are studying in the country continue to study of conventional markets by offering financial and study the economy of sharia. A number of products and sharia/Islamic based banking. scientific activities related to Islamic economic knowledge continue to be encouraged in several 198 JEBI (Jurnal Ekonomi dan Bisnis Islam)-Volume 2, Nomor 2, Juli-Desember 2017 regions, such as London and Durham. Sharia According to him, sharia business economists from several universities in the UK opportunities in the UK growing in line with were brought in to be speakers in seminars the increase in public confidence in the Islamic and training.When the economic system of financial system. Therefore, the built system capitalism suffers from fragility, the economic emphasizes openness in banking management opportunities of Islam are increasingly wide and is more rational in taking advantage of open for rapid growth. The symptoms are banking finance business. shown when 36 countries in the world have As of February, there were five sharia pure practiced the Islamic economic system, both banks and 17 conventional bank sharia business in Asia, Europe, America and Australia. units in the UK such as HSBC, Barclays, RBS Why is Britain a significant actor in the and LIoyds Banking Group.Syariah banking context of Islamic economics and finance assets in the country reached 18 billion US globally? Aside from the fact that Britain was dollars or exceeded the assets of Islamic banks the first Western country to implement this such as Pakistan, Bangladesh, Turkey, and Islamic economic system, in fact the data show Egypt. In this country, the development of that the UK has been providing Islamic finance Islamic finance business is also supported by services for 20 years and has contributed 55 universities and educational institutions greatly to being the center of providing Islamic that have sharia education and finance. finance in Western countries. Government France is also interested in developing policy support and regulations issued by the Islamic financial system. Last December, the Financial Services Authority (FSA) have made French Finance Minister, Christine Lagarde, the situation more conducive for domestic and said his country would make adjustments to foreign investors to encourage Islamic banks to the rule of law for Paris to become the main operate in the UK (Presley and J. G. Sessions, market of Islamic finance (Mackenzie, 1997). 1994:584-596). There are a number of sharia banks that UK Government Financial Policy Advisor will open a branch in the capital of the country. Omar Shaikh said Britain has now become Even in March, the French central bank put the center of Islamic banking in Europe. the issue of sharia financial management in the "The system is evolving thanks to the political discussion forum. French interest is fueled by support of the British government that sees the the resilience of the sharia economic system in implementation of this system as a business the face of the global financial crisis.Departing opportunity," he said at an Islamic Finance from the important achievements that have Management seminar held by the Glasgow been achieved through various aspects, there Student Association of Glasgow (UKI) at the is no other reason for Britain to declare itself University of Glasgow, Scotland, England. an international Islamic financial and financial center. Moreover, Britain benefits from its The Development Of Islamic Economics in Various Parts of the World 199 position as an international financial center and balance of payments balance. In Saudi since ancient times, where London holds the Arabia, for example, oil revenues decreased title as one of the most attractive cities for drastically from 120 billion US dollars in 1981 international investors. to 17 billion US $ in 1985 (Warde, 2000:32). Islamic banking with its known products, ANALYSIS namely Mudharabah, Murabahah, Sukuk, and Islamic Economics in the Context of the Musyarakah are an economic based system on Dynamics of International Political Economy a shared understanding of what is delivered and The presence of Islamic economics has raised what a customer obtains in Islamic economic new hope for many people, especially for transactions. In it there are values that serve Muslims of an alternative economic system as a common guideline to grow and move of the economic system of capitalism and forward together. socialism as the mainstream of the debate British Government Policy Accommodating of a world economic system, especially Islamic Economy as an Alternative and since the end of World War II gave rise to Complementary Economy. Mohammed many former imperialist imperialist Islamic Hersi lays out his research on the important countries. In this case, the existence of role of Islamic economics in tackling the Islamic economics as an alternative economic phenomenon of financial exclusion that model allows for many parties, Muslims and engulfed the Muslim minorities in Britain. non-Muslims to do a lot of excavation of One of the prominent aspects of the paper various Islamic teachings, especially those is the socio-economic condition with British relating to the fulfillment of needs between Muslims who feel not accommodated activities people through economic activities and other especially in economic activities in the UK activities. Islamic Economics is the study of due to the lack of sharia-based banks and human economic behavior whose behavior Islamic banking products such as mudharabah, is governed by the rules of Islam and is based murabaha, sukuk, and takaful. Muslims on monotheism as summarized in the pillars who are obedient to Islamic sharia law are of faith and pillars of Islam (Khan, 1999:6). demanding the existence of financial products At the beginning of the 20th century, Islamic in the UK that are able to accommodate their banks were only the obsession and theoretical needs in economic activities based on Islamic discussion of academics both from the field values or sharia. This is driven by the Islamic law (fiqh) and economics. In the mid-1980s, law mentioned in the Qur'an as the Muslim the circumstances that gave rise to Islamic holy book which states that bank interest is banking had dimmed. More specifically, oil usury. Meanwhile, the time frame of the study revenues have fallen in such a way that most was in 1987-2004, where in that span of the Islamic countries experience fiscal problems year Britain was looking for a new pattern of 200 JEBI (Jurnal Ekonomi dan Bisnis Islam)-Volume 2, Nomor 2, Juli-Desember 2017 economic policy that was able to embrace the are 14% of over 25 unemployed Muslims, needs and interests of these minority Muslims. compared with the national unemployment That is, Britain is being aggressively studied rate of 4%." Here it appears that the British the intricacies of the application of Islamic Muslim community suffers from a very economic system, especially sharia banking. complex socio-economic poverty. It is the The late 1980s were the early era of the hope of academics and researchers that the entry of Bahrain-based on sharia bank, Al- results of this research will be valuable to all Baraka. However, due to the lack of knowledge parties related to the difficulties facing this and practice regarding sharia economics in community, including the providers of Islamic the UK, the bank failed to establish itself in financial services products, policymakers, and the British economic system. Meanwhile, in Muslim organizations themselves.

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