Islamic economy offers human-centered alternative to global financial model

By Gokhan Ergocun

ISTANBUL (AA) — Islamic economics is not just an interest-free financial model but a moral, justice-based and human-centered way of life that offers an alternative paradigm for the world, according to Bilal Erdogan, chairman of the board of trustees of Türkiye's Ilim Yayma Foundation.

Speaking at the Second Global Islamic Economy Summit in Istanbul, Erdogan said a key concern remains the widespread information gap surrounding Islamic finance, even in Türkiye, where it accounts for around 8 percent of the financial sector.

Many people, he said, reduce Islamic finance to an interest-free tool, failing to understand its foundational values.

"It is not really only about an interest-free way of reaching finance. It is actually a potential alternative paradigm for humanity," he noted. "It is actually a potential alternative paradigm for humanity."

He also criticized Islamic financial institutions in Türkiye for being overly cautious in their approach and lacking effective communication strategies.

"How do we frame our products? How do we try to make sure that people realize that there are these ways of doing similar things as well?" Erdogan said, urging a stronger focus on Islamic finance’s unique features, particularly its principles of partnership and participation.

Erdogan added that millions of people around the world remain outside the banking system not due to exclusion, but because the system itself has “lost its humanity.” Islamic finance, he said, should aim to integrate these individuals by “uplifting them with the dignity that it offers.”

Addressing the humanitarian crisis in Palestine, he added: “I am hoping for once this genocide will come to an end.”