ISLAMIC FINANCING SERVICES FOR STIMULATING COVID AFFECTED ECONOMIES - A THEORETICAL ANALYSIS
ISLAMIC FINANCING SERVICES FOR STIMULATING COVID AFFECTED ECONOMIES - A THEORETICAL ANALYSIS

Summary/Abstract: The Covid 19 pandemic has disrupted life in all countries and communities, affecting global economic growth in 2020 in ways that have not been seen in a century. Governments responded to the extraordinary reduction in economic activity by enacting several policies, which included monetary policies aimed at stabilizing financial markets and ensuring the flow of credit. Governments used quarantines and social isolation in the second phase, while policy activities moved to budgetary measures aimed at sustaining economic growth. To response to repeated crises and pandemic-induced global economic stagnation, a new paradigm is required. This qualitative study intended to examine various Islamic financing techniques and services that can help the economy recover from the pandemic crisis' disruption. Countries that follow Islamic economic principles in their economic transactions, such as Indonesia, have begun to adopt some of these principles, and it is believed that the application of the Islamic economic system can be a golden momentum to restore economic recession of these countries following the effects of national policies aimed at combating the effects of Covid pandemic. This study examines different stages of economic challenges that have occurred because of the Covid 19 pandemic to examine different Islamic financial services and their application to minimize the crisis developed at each stage.

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