Jordan’s geographical and political location between the Arab and Islamic countries provides it the opportunity to outperform many countries in the Middle Eastern region in several fields including, for example, governance. International economic and banking institutions are currently looking at Islamic economic concepts, and are seeking to know the extent to which they help in avoiding crises and economic regression, especially after the world as a whole went through a general economic crisis resulting from the COVID-19 pandemic. The Islamic economy overcame that ordeal with wisdom and success that led to the world as a whole reconsidering the Islamic economy.
Jordan is currently characterized by the presence of banking institutions that operate according to the Islamic economic concept and have a distinguished banking presence. Perhaps what Jordan needs in this field is to develop economic management systems and tax laws in accordance with Islamic finance concepts so that the problems of poverty, collecting Zakat and combating corruption are confronted by employing the Islamic religious dimensions that help the poor. The emphasis on work and prohibition of corruption achieve good management of society’s affairs and its development according to Islamic economic systems that western countries are seeking to implement.
Review of 2022
2022 was considered the year of recovery from the effects of the COVID-19 pandemic, as the Jordanian economy gradually returned to growth. Despite the Jordanian economy suffering from indebtedness and weakness in attracting foreign investments, Jordan is distinguished as an economic country that has openness and cooperation with many international institutions through global trade and free trade agreements.
These help Jordan to play a pioneering role through its Islamic banking tools that have developed to a remarkable level which have taken root in the Jordanian banking system. The banking system has witnessed remarkable growth and stability in the past few years despite the difficulties that left their effects, including the global economic and financial crisis resulting from the COVID-19 pandemic. The Jordanian economy still needs to transform into an Islamic economy in all forms of economic work.
Preview of 2023
It is possible to start providing government financing for the private sectors through the surplus liquidity in Jordanian Islamic banks and the countries of the Islamic world. This will reduce the level of interest, thus stimulating the growth rates, and possibly attract more investments into the Islamic banking sector that are compatible with Islamic law and achieve the aspirations of savers.
For those who believe in the feasibility of saving through Islamic banks, and the possibility to benefit from legislation supporting the Islamic economy which extends to include small- and medium-sized companies, and who are supportive of any economy and the level of individuals living within it, the importance of Islamic banking increases due to the significant shift in investor attitudes toward Islamic banks and the tools that have succeeded in continuity.
This is in addition to the characteristics of Islamic financing and savings methods such as distributing risk and avoiding high fines as well as exorbitant interests, apart from the existence of banking financial institutions that deal with the Islamic banking concept that is taught within courses provided at universities, and it is also dealt with interest and published in the media, which will lead to the existence of non-banking economic institutions that operate within the concepts of Islamic economics.
Therefore, 2023 will be a greater opportunity for the success of the Islamic economy in Jordan, and it is likely that Jordan will succeed in attracting major investments to operate within the Islamic economic system, where global investors have become fully convinced of the superiority of the Islamic economy over other economies.
Conclusion
The Islamic economy aims to achieve a good and dignified life, and material and moral well-being for individuals and societies. Therefore, the Islamic approach to investment works to control and rationalize the movement of investment activity within the framework of societal priorities.
Jordan is distinguished by the availability of a talented, educated and proficient human element in matters of technology that enjoys global awareness. Jordan is one of the countries distinguished by its high rate of education and various specializations of human cadres who enjoy accumulated experiences that enable them to contribute to the success of an Islamic economy in an effective way. These contribute to getting Jordan out of the impasse of indebtedness and eliminate unemployment, albeit relatively, by providing work opportunities and reducing the widening gap of social disparities as well as the rate of poverty, which contribute to achieving a decent economic and social life for the Jordanian citizen, and help governments to overcome the problem of accumulated indebtedness.
Dr Hussein Mahmoud Alshgairat is the manager at Dart Aleghwan for studies and research. He can be contacted at [email protected].