Debt and Islam

It is well known that debt is one of the root causes of poverty in many poor countries. Less known is how Islam, a religion with charitable giving, social rights and justice at its core, deals with the issue. Muslim teachings are rarely utilised in the international discourse on 'unjust' debt and its consequences, yet studying them reveals many ways that the debt crisis could be tackled and ways in which similar problems could be avoided in the future.

The debt of the world's poorest countries is estimated to be $2.7 trillion. However, much of this debt has been termed ‘unjust' provided to dictators or oppressive regimes by lenders who knew it would never reach the people or projects for which it was intended. The effect of paying back this ‘unjust' debt has been that many indebted countries have failed to make any significant socioeconomic developments or have failed to sustain previous development progress.

This lack of economic development has also made it difficult for successor governments to pay back what they owe, thereby forcing poor countries into a deepening spiral of debt.

Download the detailed briefing on debt and Islam, and the accompanying PowerPoint presentation, using the links on the right.

The Debt and Islam report was written by Islamic Relief.
Islamic Relief Worldwide
www.islamic-relief.com

Islamic Relief UK
www.islamic-relief.org.uk

"If the debtor is in difficulty, grant him time till it is easy for him to repay. But if ye remit it by way of charity, that is best for you if ye only knew"

(Qur'an 2:280)