ABSTRACT

                                 Theories on economic development stipulate is the key role that technology plays in ensuring growth in countries’ GDP. Considering the classical approach to economic growth, that is, increased output in the economy in the long run is entirely dependent on the velocity of money, the price level, money supply and the number of transactions in the aggregate economy. The velocity of money, in terms of the number of times a unit of currency can be used in a transaction, is the most important parameter in this instance. An increase in the velocity of money most definitely increases the economic growth of states through its impact on the classical model on economic growth. It is therefore very necessary to concentrate on the ways of increasing money Islamic financial institutions are expected to provide special services to those in need. This is not confined to mere charitable donations but has also been institutionalized in the industry in the form of profit-free loans or Al Quard Al Hasanah. Islamic Economic provides profit-free loans. For example, if there is an individual needs to go to hospital or wants to go to university, without any profit, this system will provide facility.

In this article I try to introduce briefly Islamic Economy according to secondary data, and the research methodology of this article would be content analysis.

Key Words: Al Quard Al Hasanah, Global Economy, Economy, Islamic Economy, Shariah.