Document Type : Original Article
Islamic Azad University, Qazvin Branch, Iran
Kooshyar Higher Education Institute, Iran
The observation of diverse and significant business opportunities in Islamic institutions and banks by official government institutions around the world has led to increasing attention to Islamic financial institutions. A large number of professional investors have shown great interest in adding Islamic financial products to their investment portfolio. The capital market mechanism of Islamic countries is different from other famous countries for creating and expanding capital markets. In Islamic systems, economic actors are guided not only by laws and regulations but also by the guidelines of the Quran. Islamic finance provides various products in the form of tools and methods. The main financing instruments used by Islamic financial institutions have distinctive features such as the ability to estimate the value of various assets based on their original value, the allocation of specific financing methods per contract, the correct and non-contradictory definition of the prices of goods and services, as well as the partners' share of profits and losses. The present article, while describing the tools of Islamic financial institutions and the role of Islamic finance according to the model of Islamic economics in the development of the world economy, has also examined Islamic social reporting in these institutions. The most important result of the present concept paper is that the use of Islamic financing tools under the principles of Islamic economics leads to a reduction in the level of financial breaks and distrust in capital markets.