Reforming Islamic finance industry : where from ? .. where to ?

الملخص EN

This essay contributes to the topic of the discussion forum (DF) through the treatment of two points that were spelled out in the framework of the DF provided by the editorial board (EB) of the Journal and elaborated by the lead paper (Hassan, 2020).

These are: the institutional set-ups of the sixties vis-à-vis that of the seventies of the development of Islamic finance (IF), and the theory of „IF intermediation‟.

Though the essay shares the same subheadings of the specified points, the treatment and emphasis are somehow different from those dealt within the lead paper and other existing Islamic economics and finance literature.

The author discovers that most of the literature does not go beyond the prevailing shallow treatment of the first point; historical records and narrations of the two experiments.

For this reason, some Muslim economists consider the significance of Mit-Ghamr local savings bank as „only historical for the time being‟ (Ahmad, Rahman, & Valie, 1995, p.

352).

In pursuing such a synthesis, the author hopes to draw some insightful lessons that can guide us in bringing an „important venue‟ to the existing proposals for the reform agenda of IF rather than indulging into a „vicious circle‟ that does not transcend a few factors that have been in circulation for some time without reaching proper resolve.

It is also hoped that the explored dimensions are given due consideration in the discussions surrounding the future of IF in theory and practice