The promotion of Israaf and Tabzeer Through Islamic FinanceA myth or Reality

Abstract

Focusing on wants rather needs and taking them as an important goal of the life, is called consumerism, which leads to buying of goods and services more than they are needed and spending money in luxury brands just to show of being occupying a special social status and wasting the economic resources in useless activities.

On the hand, the conventional shape of linear economy is based on Hoteling’s theory, i.e., take, make, yield, and destroy, which is constantly having adverse effects on human lives and the environment.

Islam being a moderate religion and code of life, Islam considers such behavior Israf and employs its every effort to uproot it from society. yet, the present shape of Islamic finance, has being designed being a financial system will have both the desire and every effort to bring more and more products into the market, and to offer its services to the client as much as possible.

 However, the question raises here is, does this attitude of Islamic finance leads to promote Israf and consumerism?

And what steps are being taken to prevent this behavior and what more should be done?

The purpose of this study is to find an answer to this question by conducting a comparative and analytical study of the current shape of the Islamic financial system.