Faith, Finance, and the Future: Shariah Banking holds the key to sustainable growth
Mohammad Musudur Rahman :
It was in a small town outside Khulna that Abdul Karim’s life changed. For years, he had run a modest tailoring shop, stitching school uniforms and wedding outfits, barely making ends meet. Every month, the burden of interest on his borrowed capital grew heavier, eating into his earnings and eroding his dreams. One day, a friend introduced him to a Shariah-based savings and financing model.
Unlike the suffocating cycle of interest, this arrangement was based on partnership, shared risk, and mutual growth. Within a year, Karim had repaid his obligations without fear of compounding debt. More importantly, he felt dignity restored: his financial growth was tied not to exploitation, but to fairness.
Karim’s story is not unique. Across Bangladesh, from small entrepreneurs in rural markets to professionals in Dhaka’s glass towers, the principles of Shariah-based finance are rewriting financial destinies. They are proving that banking can be more than numbers; it can be a moral force for stability, inclusivity, and prosperity.
Beyond Profit – at its heart, Shariah-compliant banking rests on the timeless objectives of Maqasid al-Shariah – protection of faith, life, intellect, progeny, and wealth. It forbids exploitation through interest (riba), promotes ethical investment, and insists that wealth circulate fairly within society.
This is not simply theology; it is economics with a conscience. Where conventional banking often prioritizes profit maximization, Shariah banking seeks a balance between profit and purpose. Financing a small farmer, supporting green industry, or providing micro-investment to women entrepreneurs are not side projects; they are the very fabric of the model.
In Bangladesh, with a growing youth population and rising demand for ethical finance, this framework speaks to both aspiration and responsibility. It tells us: development must be ambitious but never unjust.
Today, the global Islamic finance industry is valued at over USD 4 trillion and growing at 10-12% annually. For Bangladesh, which has long been a pioneer in financial inclusion through microcredit and digital banking, this presents a unique opportunity.
By embedding Shariah principles into our financial ecosystem, we can both attract international investors seeking ethical portfolios and empower local communities with sustainable, inclusive solutions. Imagine export financing structured to share risks with garment manufacturers or housing finance designed not to enslave families in debt but to uplift them into ownership.
Yet beyond the numbers lies the human story. A group of university graduates in Chattogram recently formed a start-up offering digital halal investment products. Their clients? Young professionals are tired of conventional savings schemes, yearning for financial products aligned with their faith and values. Their vision is simple: if money is to be a tool for life, let it also be a tool for integrity.
Or take the story of Parveen, a widow in Rangpur. With no collateral to her name, she was rejected repeatedly by traditional lenders. Through a Shariah-based community financing pool, she received a small fund to start a poultry farm.
Today, she not only sustains her family but also employs two other women in her village. Her success is not measured in profit margins alone, it is measured in dignity, inclusion, and the ripple effect of empowerment. These stories reveal why Shariah-based finance matters. It turns banking from a cold transaction into a warm relationship, one that binds community with responsibility and prosperity with compassion.
Of course, no system is without challenges. Shariah-based banking faces doubt from some quarters, regulatory hurdles in harmonizing global standards, and the need for continuous innovation to remain competitive in a fast-changing digital economy.
But these challenges are also opportunities. Bangladesh has the chance to lead in developing standardized Shariah governance, digital Shariah-compliant platforms, and capacity-building for financial professionals. Imagine if every madrasa graduate could be trained in modern Shariah finance principles, bridging traditional knowledge with modern economics. This would not only create jobs but also deepen the credibility of the sector.
One of the renowned Islamic scholars and visionary leaders, Mr. Md. Abdul Mannan, Chairman of FSIB, once remarked that Shariah-based banking is not merely about avoiding interest; it is about building a comprehensive financial ecosystem where finance becomes a means to serve humanity. It calls for proactive leadership, ambitious reforms, and a bold vision. It inspires us to envision not just skyscrapers but also societies where everyone can participate in financial growth.
For Bangladesh, the potential is immense. We are already a nation of resilience, from rebuilding after cyclones to lifting millions out of poverty. By embracing Shariah finance more fully, we can take that resilience to the next stage – creating a financial order that is not only stable but also deeply inclusive, not only profitable but also profoundly just. As Abdul Karim, the tailor, now tells young apprentices in his shop, “A business grows not just by earning, but by earning with fairness. That is the difference between wealth and blessing.”
In a world torn between greed and inequality, Shariah-based banking offers a middle path: one that is ambitious yet compassionate, bold yet ethical, and profit-driven yet human-centered. It fulfills the Maqasid al-Shariah by protecting wealth without destroying trust and by enabling growth without leaving others behind. The story of Karim, Parveen, and countless others reminds us that finance is not just about balance sheets, it is about balanced lives.
(The writer is a banker; Email: [email protected])