The role of Islamic deposit certificates in achieving economic growth countries experiments with refer to Iraq for 2018

Abstract

Islamic banks are characterized as multi-functional banks, so they have the role of commercial and specialized banks, and do not deal in credit and do not benefit. They provide financing according to legitimate forms, such as speculation, participation, Murabaha and other means of investment. Certificates of deposit are considering products that motivate customers to save for long periods, while receiving a fair annual profit rate. This type of Islamic products is one of the modern and important tools in the field of financial transactions, and that not exist in Iraq previously. This type of Islamic instruments (Sukuk) achieves great economic feasibility, as it contributes in mobilize the development process because it emanates from real activity, and focuses on the origin of (plant, farm, Property, Trade ... etc.). Therefore, a serious attempt must be made to evaluate the developmental role of investment in Islamic certificates of deposit (Murabaha) issued by the Central Bank of Iraq in 2018 in light of its development role. After discussing the concept and types of Islamic certificates of deposits and its development role in general, the development role and the future vision the development role is clarified (Islamic certificates of deposit) in Iraq in the applied side of this research. The research hypothesis that investment in (Islamic deposit certificates), by Islamic banks in Iraq, leads to increased economic growth). and the research reached the conclusion, that increasing the investment in Islamic certificates of deposit, and the amounts invested in them lead to increase the expected profit of the bank, and thus high liquidity of the bank increasing the savings that result in increasing investment and directing it to the productive sectors. Therefore, the researchers recommend that Islamic banks should be interested in planning and supporting the economic feasibility studies of the projects expected to be finance in order to support and promote economic growth.