The Islamic Financial Industry: What Is Its Role in the Moralization of Financial Markets?

Abstract

This article tries to show the importance of the ethics of the Islamic financial industry in the financial markets to see how it can contribute to making the practices of Western Classical financial markets more ethical. The Islamic financial industry has diversified to reach several segments of modern finance. It offers a series of financial reforms and techniques at the heart of the classical economic system. Through the principles on which its institutional system is based, which consider the ethical and social aspects of the business world, this industry can cope with the phenomena of crises and fluctuations, preventing monopolies, fraud, and deception and promoting rational behavior against speculation. This reality makes financial markets a factor of stability, a development tool, and a means of accumulating savings and financing projects. Indeed, if the so-called ethical Islamic financial industry certainly makes it possible to introduce an important ethical dimension into the moralization of the financial markets, it is not definitely free from faults and limits.