A Generalised Theory of Islamic Development Financing

The objective in this paper is to show that a generalised theory of development financing in Islamic context assumes a detailed general equilibrium approach to the solution of the following interrelated problems: The objective criterion of Islamic development co‐operation is recognised as the optimisation of an underlying ‘ummatic’‘shura’‐based social welfare function in the sense of social consensus formation. This social welfare model is implicitly invoked here, not explicitly formalised. The reader is referred to the glossary of Arabic terms used in this paper.