12^th International Conference for Islamic Economics and Finance 2018

Towards the Real Economy: Challenges and Prospects

 

18^th March 2018, Umm Al-Qura University, Makkah, Saudi Arabia

 

Jointly organised by

The College of Islamic Economics and Finance, Umm Al-Qura University, Makkah

The Islamic Research and Training Institute, Jeddah

The International Association of Islamic Economics

 

Call for Papers

 

At a time when the world seeks novel solutions to the latest global economic and financial crisis, which was due predominantly to the financialisation process involving the proliferation of securitisation and new financial instruments, and substantial credit expansions to households, this conference seeks to emphasise the real economy foundations of Islamic economic thought as an alternative to those conventional approaches and furthermore as a redirection of efforts within the Islamic economics and finance (IEF) community away from strategies which seek only to mimic conventional techniques and towards developing the genuine real economy solutions which Islamic economics thought has sought for decades.

 

The theme aims to focus on those theoretical concepts and implementable solutions related to and based upon the real economy which has been defined as ‘the part of the economy that is concerned with actually producing goods and services as opposed to the part of the economy that is concerned with buying and selling on the financial marke

ts’. The aim is to stimulate a debate on how Islamic economics and finance can better serve the real economy and foster economic, social and environmental sustainability. An important part of this is to identify the underlying reasons why Islamic economics and finance has not managed to effectively develop policies, practices and products which are authentically aimed at and based on the real economy, and then to bring forth the solutions that allow such development.

 

Extended abstracts (maximum 500 words) are invited under one of the following broad sub-thematic areas and must clearly demonstrate the following:

1. The research question being addressed and the conclusions derived
2. A strong relevance to the theme of real economy
3. An original and novel contribution to the existing body of knowledge

 

1. An Islamic economic framework to develop the real economy

The core principles of Islamic economics stress the importance of tangible goods and services and so are ideal for developing and supporting the real economy. However, the frameworks and detailed mechanisms for this development have not been satisfactorily elucidated, thus resulting in the dominance of the Islamic financial sector over the real economy. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

What is the Islamic economic model which can be proposed as an alternative to the hegemony of financialisation?

How does Islamic economics theory tackle the practical issues such as diversification, labour reforms, international trade and more which directly affect the real economy sectors?

In what ways can governments implement Islamic economic solutions to develop the real economy sectors of their nations?

Can the real economy utilise the collaborative and value-based concepts of Islamic economics?

What is the nature of Islamic micro and macroeconomic concepts for the real economy?

Is the Islamic economy a centralised, de-centralised or distributive one?

 

1. Islamic Finance and the real economy

Islamic finance and banking is a fast growing sector globally, yet its products and services are predominantly focused on financial and consumer markets thus leading to criticisms of its neglect of the real economy sectors. The traditional participatory modes of finance are deemed to be too risky by regulators and so the preferred products are those serving consumer lending. At the same time the Islamic financial markets are dominated by sukuk which have been useful for major project development. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

What is the nature and extent of Islamic finance provided for the real economy?

Are there barriers beyond the control of the industry to offering risk-sharing financial products?

Is the real economy more stable and sustainable than Islamic financial markets?

How can Islamic finance shift its focus from the consumer to the producer?

Can benchmarks, indicators and indices based on the real economy be developed and used?

Which alternative mechanisms of Islamic finance exist (non-bank, fintech, cooperative, crowd)?

Can the sukuk model be utilised for industrial and agricultural sectors?

How can Islamic finance better support the Small, Medium and Micro Enterprise sectors?

 

1. Social Responsibility / Shared Values

Perhaps the main distinguishing feature of IEF is the emphasis placed on moral and social directives found within Islamic ontology. At a time when many are calling for more social responsibility and greater sharing within economics and finance, Islamic economics and finance should be in a position to highlight the moral and humane foundations of its theory and practice. With many traditional Islamic institutions and practices being built around a core concept of sharing and mutual help amongst the community amongst humanity in general, a key question is how these may contribute to the development of the real economy sectors. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

What are the possible roles in the real economy for collaborative and distributive institutions such as waqf, zakah, sadaqah?

What is required to embed Islamic social values in the economy?

What is corporate social responsibility from an Islamic perspective?

Are there any Islamic moral frameworks governing the production, distribution and consumption of goods and services?

Waste and degradation of the environment are a by-product of consumer culture. What does IEF contribute to this debate?

In the light of Islamic guidance, does the real economy sector need to be sustainable and responsible?

What does Islamic economics thought contribute to the concepts of circular and linear economies?

What are the ethical concerns around debt creation and the financial inclusion agenda?

 

1. Concepts of Development

Islamic concepts of economic development are centred on the real economy. However, such development is not seen merely in terms of material development but also in terms of fairness, responsibility, sustainability and mutual cooperation. The real economy is the driver of economic development which allows the whole society to participate and benefit from its activities and outputs through the production of goods and services and creation of employment. In this way development of the real economy positively impacts the development of society as a whole and can serve as the mechanism for engendering cooperation, trust, sharing and sustainability. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

What are the indicators of development from an Islamic perspective?

How do the Islamic concepts of human development relate to the real economy?

Has IEF positively affected the development of international trade?

Can waqf serve as a mechanism for local development?

What are the changing roles of the IDB and OIC in the 21^st century?

What are the developmental consequences of prohibiting riba?

In what ways does IEF support and promote sustainable development through the real economy?

 

1. Law, Regulation and Governance

Investment in and development of the real economy in an Islamic manner may require adjustments and innovation in local, national and regional legal regimes and regulatory frameworks which were designed for conventional economies. Additionally, Shariah law governs all Islamic activity and so must be adhered to in any Islamic economic or financial transaction. The laws and regulations specific to Islamic finance have developed continuously to match developments in practice. Similar attention is needed to address the requirements of the real economy. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

What are the regulatory implications of developing the real economy in an Islamic manner?

Can Islamic financial engineering help in developing the real economy?

Do regulatory restrictions on risk-taking limit the ability of banks to offer Islamic investment products?

What is the role of the institution of hisbah today?

What are the roles of AAOIFI, IIFM, CIBAFI, IFSB, LMC, IIRA, and International Arbitration Center of Islamic Financial Institutions?

How can Shariah governance be applied to the real economy sectors?

What are the regulatory requirements on the real economy sectors from an Islamic perspective?

 

1. Innovation and Entrepreneurship

The real economy depends upon innovation and creativity to maintain competitiveness. Furthermore the engine of the real economy is the entrepreneur and the SME sector. Any viable economic theory must account for these facts and provide for the development and sustainability of these sectors. It is imperative for IEF to address the support and development of entrepreneurship, creativity and innovation in its theories and practices. The real economy depends upon competition and hence new entrants must have fair and transparent access to markets. Ensuring opportunities and rights is a cornerstone of Islamic economy. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

How well does IF provide for new, fledgling and start-up ventures?

What are the possible strategies for supporting youth in the real economy?

Are local, collaborative solutions more suitable for SMEs and start-ups than mainstream IF?

What are the barriers to entry faced by new businesses that could be overcome through IEF?

What can governments do to ensure innovation thrives in the real economy sectors?

 

1. Traditional Islamic Institutions

As the core principles of Islamic economics and finance are grounded in real goods and services it follows that the traditional Islamic institutions such as waqf, zakah, sadaqah, bait-ul-maal etc are most suitable for development of the real economy. IEF utilises many of these tools and concepts through its products and contracts for investment. However the ideal of the Islamic economy is that these institutions be embedded and integrated within society so as to effectively support and promote the values and norms of Islamic community. The third sector is the obvious application of these institutions however their use and benefit can go much beyond this. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

In what ways can waqf be implemented to serve the real economy?

Can the istisnaa and salam contracts be effectively utilised today?

What are the experiences of integrating zakah into Islamic development strategies?

Can traditional Islamic economic institutions provide an alternative to mainstream finance?

What legal, regulatory and social reforms are necessary to fully implement traditional solutions?

 

1. Case Studies

Throughout the world, IEF has impacted the real economy in many ways. Studying these real cases to better understand the effectiveness of IEF in the real economy is essential. Going beyond financing, it is necessary to analyse whether IEF has actively engaged with the real economy in an authentic manner to further development. From risk-sharing investment to grassroots agriculture development, from infrastructure projects to economic transformation, all experiences of IEF working with the real economy must be analysed and lessons learned. This importantly includes researching and examining historical documents, which would shed light on how Islamic societies successfully implemented economic and social policies within wider frameworks of Islamic law and culture. The successes and the failures of the past give valuable insight for the strategies of the future. The following questions are examples of the type of discussion expected, but the list is not exhaustive:

 

What are the success stories of authentic engagement of IEF with the real economy?

What and where are the sources for examining the historic Islamic real economy?

In what ways have nations utilised IEF theories and practices to transform the real economy?

What role can IEF play in major economic transformations such as Saudi Vision 2030?

Has IEF helped develop international trade within an Islamic framework?

Are the effects of IEF on the real economy similar across differing economies and contexts?

What is the long-term effectiveness of sukuk issuances on real economy development?

 

Important Dates

 

15^th July 2017                    Opening of abstract submission process online

14^th August 2017               Closing of abstract submission process online

31^st August 2017               Deadline for decisions on accepted abstracts

31^st October 2017            Deadline for submission of full papers

14^th December 2017        Announcement of final selected papers

14^th February 2018           Deadline for submission of final formatted papers

18^th March 2018 Conference begins

19^th March 2018 Conference closes

 

Submission Guidelines

 

All abstracts must be submitted through the conference online submission process. For details on how to submit, please visit the submission portal at www.uqu.edu.sa/fesif/25544

 

Important Information for Authors

 

All submissions will undergo a thorough blind review process and only those selected by the academic committee for the conference will be notified by email to the corresponding author. Decisions of the committee will be final.

 

All submissions must not have been published in any form previously or submitted to any other conference or journal for consideration. By submitting to this conference authors give the right of publication to the conference.

 

Subject to the availability of funds, the corresponding author of accepted papers will be sponsored for round-trip economy class air fare and hotel accommodation for the days of the conference only.

 

The conference will arrange to have selected papers published in recognised academic journals and/or edited books and proceedings.

 

Contacts

 

All enquiries may be directed to the following

The Academic Committee:            ac_icief@uqu.edu.sa

The Organising Committee:          oc_icief@uqu.edu.sa