Chapter 17: The Contribution of Islamic Banking to Achieving Economic Development: The Jordan Islamic Bank as a Model

This study aims to explain the developmental effects that Islamic banks seek to achieve, especially since they have gained widespread and large transactions in society, which has increased the confidence of those dealing with them until they have reached the level of modernity and development that they have achieved. The study dealt with the emergence and development of Islamic banking and explained the concept of Islamic banking and its characteristics, as well as the financing formulas in which funds are employed, which contribute to the development of society, and what are its objectives and the means and methods by which the transition from traditional banking to Islamic banking was achieved, through its credit activities. The study then reached a statement of the developmental effects achieved by Islamic banking in society, which forces banking dealing to stop using interest rates, by replacing financing formulas that have a legal character and directing their savings to investment by financing projects that contribute to production and employment and manage the wheel of the economy, which reduces unemployment, even if it is relative.