Islamic Finance and Pandemic Relief: A Framework for Global Cooperation

Abstract

Coronavirus 2019 (COVID-19) is pandemic which drastically impacted the China and their economy and not only limited to china but also spread into most of the countries across the World. The COVID-19 outbreaks result and impact on the global economy and flourished not only the financial markets but also the oil market across the globe. The unpredictability of disease evolution and its economic consequences poses a significant challenge for policymakers in devising an effective economic response. However, Islamic finance has made notable strides in recent years, offering promising solutions not only for Muslims but also for nations worldwide. The growth of Islamic finance aligns with the global quest for innovative financing methods and value creation. Guided by Shari'ah principles, Islamic finance prioritizes ethical investments, prohibits harmful activities, and focuses on societal betterment and individual well-being. Nevertheless, we observe that current Islamic financial products often prioritize compliance over genuine spiritual alignment, treating Shari'ah adherence as a mere formality rather than a true reflection of Islamic values. It is an utmost care for the enhancement of Islamic social finance in the community in the current pandemic and gets rid of the poor and needy from the social curse of poverty and fulfilled their necessities in the current pandemic situation across the globe. It is the essence of Islamic moral economy to care the individuals by helping their necessities, which entails the social justice, harmony, and better wellbeing across in the community.