Examining the relationship between war and interest-based transactions: the case of the Ottoman empire

• Main Authors: Mubasshera, Hamida, Kassim, Salina
• Format: Article
• Language: English
• Published: Emerald Group Publishing 2015
• Subjects: HC Economic History and Conditions; HG Finance
• Online Access: http://irep.iium.edu.my/46099/1/46099.pdf; http://irep.iium.edu.my/46099/; http://www.emeraldinsight.com/doi/full/10.1108/H-01-2015-0005

This paper attempts to provide a deeper understanding of the verseswhere Allah has declared war against people who deal with interest by examining the relationship between war and interest based transaction.It systematically and choronologically explores the major economics events of the late Ottoman era that contributed in shaping the fate of the empire.Then it proposes that the significance of the abovementioned metaphor is not limited only to spiritual dimension, rather can also be extended to literal perspective. This paper addresses a missing component in the existing literature of Islamic economics related with interest where the political economic aspects of it have seldom received due attention. A careful analysis of these issues is expected to contribute towards better understanding of the dire consequences of dealing in interest on a micro level. On a macro level, apart from enabling a better and prudent policy formulation by learning from past mistakes, this study also attempts to bring attention to the fact that Muslims are sure to defeat in the hands of disbelievers if they themselves are at war with Allah and His messenger.