A proposed theory of voluntary individual saving from an Islamic perspective

Author(s)

Abstract
It is well known that voluntary individual saving plays an important role in the capitalist economic system and, in our opinion, plays a more critical role in the Islamic economy. The exclusion of interest on monetary capital raises doubts about the ability of the Islamic economy to achieve a sufficient amount of saving and thus its ability to achieve economic efficiency across time.
The research discussed the difference in the value judgments controlling the saving behavior between the capitalist and Islamic economy, and the implications of this for the motives of individual voluntary saving in the Islamic economy and how to determine its amount.
This research shows a difference in value judgments that lie behind the saving behavior in both the capitalist and Islamic economies and shows that the value judgments controlling saving behavior in the Islamic economy stimulate and enhance individual voluntary saving.
The research suggested a theory of voluntary individual saving in the Islamic economy that differs from the saving theories in the capitalist economy, including the idea of time preference and Keynes' theory.
In addition to the fact that the research provides an alternative to the interest rate in the form of a potential return for cash capital and shows its nature and the method of determining it, the research proves that voluntary individual saving can exist in the Islamic economy even in the absence of a return on saving, regardless of the nature of this return.

Keywords
individual savings, interest rate, The Islamic economy

Cite this paper
Nagah Abdul Alim Abdul Wahab Abul Fotouh, A proposed theory of voluntary individual saving from an Islamic perspective , SCIREA Journal of Economics. Volume 7, Issue 5, October 2022 | PP. 162-181. 10.54647/economics79346

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