Journal Article

Sustainable Economic System

Khan, Muhammad Fahim

2017

Overview

This keynote paper offers a critical intellectual reflection on the concept of economic sustainability from an Islamic perspective, analyzing why the Islamic economic system has not been effectively implemented despite its conceptual clarity. Muhammad Fahim Khan argues that Islamic economics provides a comprehensive framework for sustainable development by integrating moral and material dimensions of economic life, yet its practical realization has been hindered by superficial understanding and institutional imitation of conventional finance. He points out that many Islamic financial practices mimic interest-based mechanisms with only formal Shari'ah compliance, thereby losing the spirit of justice, equity, and social cooperation central to the Islamic system. Khan calls for an independent epistemological foundation for Islamic economics, grounded in the higher objectives (Maqasid) of Shariah and centered on human dignity as the ultimate goal of development. He redefines \"sustainability\" in holistic terms, encompassing not only environmental preservation but also intergenerational justice and moral balance among individuals, society, and the state. The paper emphasizes that Islam inherently promotes sustainability through prohibition of usury, regulation of ownership, zakah, and real-sector linkage, yet the absence of genuine intellectual and policy commitment has limited its impact. Khan concludes by urging scholars and policymakers to move beyond institutional formalism toward a value-based civilizational model that harmonizes efficiency with ethical integrity in pursuit of a truly sustainable economy. Abstract Written by Dar AlMandumh, 2025, Using AI.

• Publisher: جامعة الملك عبدالعزيز - معهد الاقتصاد الإسلامي
• Subject: الاقتصاد الإسلامى / التمويل الإسلامى / السياسة الاقتصادية