Digital economy “Islamic” experience to raise global production

Digital economy “Islamic” experience to raise global production

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Researcher Shatha Khalil *
The digital economy is the interaction, integration and coordination between information technology and communication technology on the one hand, and between the national and international economy on the other hand, and technology plays a strategic role in increasing economic growth and reforming the economic, trade and financial mechanisms.

The digital economy relies on information in its entire operations on information and allows the information technology to access in various economic activities. Most of its steps are based on the use of ICTs that have eliminated all barriers allowing the flow of information, goods, services and capital to and from any point in the world, at any time.
Leading to profound changes in lifestyles in various areas, both at the personal level and at the level of community, economy and the environment.

The digital economy sends and receives any amount of electronic currency instantaneously at any moment and anywhere, and provides the disclosure, transparency and neutrality of all information on digital currency transactions, and the advantages of the digital economy that it depends on the minds of humanity mainly, and the rest of the other elements related to pension and lifestyle and others are to support more than being an effective actor or engine.

As most of the methods and means of implementing economic activities have changed, and their impact has been positively reflected on society in general, where the transformation of the digital economy can change and achieve new events that positively affect the economic interests of the countries in general.

Despite the modernity of the digital economy, it has become one of the most important sectors of the macro-economy. It has two types of influence. The first is direct. It is the gross output of most of the digital commerce, promotion and marketing operations which depend on digital technology in full form, and the production and sale of digital applications for operations of management, control and production.
The second is indirect effect .it is the stimulation of local markets, the globalization of their products and the access to new markets that are difficult to reach by conventional methods.

Characteristics of the digital economy:
• Building an information society by exploitation of information and communication technologies to achieve development goals.
• The balance of the economic institution depends on the stock of knowledge and information, and it is possible also to run economic activities and projects through the Internet without the need for the actual movement of individuals or institutions.
• It works in trading electronic contracts, which requires providing guarantees and safe environment for individuals to complete their various commercial transactions, thus reducing the effectiveness and usefulness of the current laws and regulations (legal, banking and commercial system), and here comes the need to study and qualify for modernization and development of legal systems to ensure the best results with less Losses.
• Strongly related to the many changes that take place in the industrial environment, especially with regard to ICTs, as they affect each other positively, when one increases, the other increases.
• A research study by Accenture Consultancy and Technology Services revealed that the digital economy is capable of raising global production by about $ 1.5 trillion, which means raising global output by 2.2%, accounting for 22% of the global retail sector, 28% of the health sector and 20 % of consumer goods.

“Recognizing the importance of the digital economy and its role to provide opportunities for growth and competitiveness, especially for small and medium-sized enterprises, we have placed this sector within the priorities of our work, which is embodied in the updated strategy of the Dubai Islamic Economic Development Center 2017 -2021,” Abdullah Mohammed Al Awar, Executive Director of Dubai Islamic Economic Development Center said.

The Islamic economy is still growing, making it more appropriate than the traditional economy to accommodate digital developments
the digital economy has brought about a change in the power equation in the markets. After the programs and applications were owned exclusively by large dominant companies, they are now available to small and young businesses and enable them to reach markets and consumers to define the quality of their services and products.

Islamic Economics:
Islam is concerned with the organization of relations and economic matters like any other life matters, and the establishment of a set of rules based on the origins of the Islamic faith; namely, the Holy Quran and honorable Sunah and the Ijtihad of Fiqh (Jurisprudence) , and all of them are interested in following up the economic works within the social environment and relied on many Quranic verses and Noble Prophecy Hadiths in the formulation of many of the basic rules of the Islamic economy, and the Koranic verses that referred to usury, saying: (and God allows sale and prohibited usury), as the Islamic economy is concerned with contracts between people , Almighty God says : “O ye who believed, when you contract a debt for a specified term , write it down ” , in the follow – up of all financial transactions , whether related to the disbursement or saving of many , the Almighty said : ” eat and drink and do not waste . He does not love the wasteful”.

It is clear to us that the Islamic economy is fertile ground for innovation and creation. Its culture is new and its products need to be promoted and recognized as important. The world is racing towards adopting Islamic finance, all of which require the creation of tools, programs and applications that facilitate the world’s access to this kind of economy making it easier for newcomers to access new markets and create the incubator for innovations in the Islamic economy , and the promotion of youth, which will enhance the ability of young people to understand and absorb the needs of markets and to create their growth requirements.

Doha launches the first digital platform covered with gold:
The first Islamic electronic platform for digital currency exchange was launched on the sidelines of the Fifth Islamic Finance Conference in Doha on 19-03-2019.
This achievement is the product of work and studies and cooperation between Qatar financial center and QAF Holding Group and Malaysian Ibadah Inc .

A real amount of gold was adopted for digital coin as the following : I-Dinar digital symbol is no longer a form of electronic gold wallet, but it can be used as a common denominator for the execution and settlement of many financial operations and exchange and trading business .

With regard to the future development of the I-DINAR platform and the electronic stock exchange, it requires the development of the role and presence of many institutions operating in the field of financial services, especially the specialized banks, which are used to provide financial solutions and tools necessary to conduct financial and business operations with complete accuracy and security taking into consideration to pay attention to Global acceptance criteria and rapid technological and electronic development.

The Islamic platform for currency exchange is a turning point in technology, especially as it will provide many advantages, including the settlement of many financial operations and exchange and trade, and allow trading with or for any goods or products or encrypted currencies or any combination of solutions and financial tools as well as Financial and commercial contracts from anywhere and at any time worldwide easily.

And that the determination of the value of 1 dinar within the Islamic electronic platform, which will be titled “I – dinar” , with one gram of gold, which means that it will form a portfolio of electronic gold, so the exchange and circulation of this currency on the Internet will be in exchange for monetary , amount of gold, in line with Islamic principles. Investors and customers will be able through this platform to keep their assets and properties safely and easily, with all financial and commercial transactions being completed quickly.
One of the major challenges facing developments in the Islamic digital economies and in the Arab countries is the digital gap between reality and expectations according to the needs of individuals and institutions compared with developed countries in this field . The threat of privacy and cybercrime is one of the challenges where all business based Information Technology shared with, so this digital and information economy must be protected to ensure the confidentiality, integrity and availability of data around the clock.
The latest challenge is to organize this virtual world and to set its foundations and legislations to achieve its desired goals while keeping pace with the rapid changes witnessed in such areas.

We reach a conclusion , to keep pace with the digital world , we need continuous development by increasing investment in information and communication technology by upgrading infrastructure, increasing the number of computers and their uses in transactions and jobs, increasing the number of subscribers in the international information network, adapting and using the ready and detailed software in the management of economic ,commercial, productive, financial, marketing activities , and run human resources and educational and training activities.

Economic Studies Unit
Rawabet Center for Research and Strategic Studies