Risk Management in
Islamic Financial Instruments
145
would allow smaller investors to participate. Such an Islamic finance arrangement would
allow for vital infrastructure projects to be undertaken in emerging economies without the
need to overburden the budgets of emerging governments. As a result, emerging economies
can experience more consistent growth and more stable governments.
Zakāh and Awqāf also play an important role in Islamic economies. An important tenant in
Islam provides for the care of those in need and the fairness of economic transactions. Zakāh
and Awqāf are two mechanisms that not only accomplish those religious goals, but also can
have positive impacts on the alleviation of poverty and fostering equal access to economic
opportunities. Therefore, there are several aspects of Islamic finance that can have a positive
external effect on promoting economic growth and fairness, especially in emerging economies.
As a result, a healthy Islamic financial system can help to reduce poverty and promote
economic growth through equality.