Impact of Islamic Banking Finance on Development of Real Investment

The main aim of this study is to investigate the extent of Islamic finance contribution in real investment promoting by focusing on the size of Islamic finance instruments such as Almodaraba, profitability, and participation and their impact on the development of real investment. The results show a strong positive relationship between Islamic finance contribution and the increase in real investment size. The profitability and participation have a strong positive effect on the increasing real investment size, but Almodaraba have a negative impact with the increasing real investment size. The study recommended increasing interest by Islamic banks in expanding the real investment base in order of its impact on the national economy, and the necessity of Islamic banks to diversify Islamic financing formulas

Business · Economics · Financial system · Geography · Investment (military · Islam · Islamic banking · Islamic finance · Monetary economics · Order (exchange · Political science · Politics · Profitability index · Real economy · Economic Growth and Development · Islamic Finance and Banking Studies · Law · Microfinance and Financial Inclusion · Finance