| المستخلص: |
The research study is an analytical approach towards evaluation of the Islamic financial system for measuring its effectiveness to mitigate the present financial crisis in the world. The present financial crisis has been held to be a consequence of the failure of the financial systems being followed in various segments of the world. From the evaluation of perceptions of the people across the world, it has been evaluated that they urge towards identification of an appropriate alternative to the present financial system. They desire for an alternative that holds strong prospect of avoiding financial crisis in the future. Following the search for a perfect alternative, it was observed that the Islamic financial system is argued to be the best answer to the present problem of the international economy. Various economists purported that Islamic financial systems bear strong possibility of becoming successful alternative to the present financial system. For critically evaluating the argument, various sources have been reviewed through library search. The findings have been analysed through primarily qualitative approach and presentation of quantitative data about the effectiveness of the Islamic financial system. The findings suggested that although the Islamic financial system holds strong prospect to evolve as the most effective financial system of the world, comprehensively it cannot be implemented in the International market. This is because the Islamic financial system is still challenged with certain loopholes, the presence of which can hinder its effectiveness. Evidences have been provided in this research study with respect to the Islamic banking system’s effectiveness in certain portion of the world such as that of Malaysia while at the same time evidences have also been provided of its inefficiency in certain other parts of the world such as that of Pakistan and Middle East.
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