Estimation of the Composite Index of Islamic Economy and Examination of its Trend in Iran

Information constitutes the main basis for decision making. Sometimes the amount of information obtained is so huge that the inappropriate use of unanalyzed information will lead to making wrong decisions. Defining practical indices and the quantification of quality indicators in different domains can be of remarkable help to discover fundamental problems, set goals, and choose the best way to achieve them. Islamic economy could be one of these areas. In this study, through following scientific principles, the composite index of Islamic economy in Iran from 1995 to 2012 was defined and estimated. In fact, it is for the first time that a long-term performance of a country is examined. The results show that the absolute value of the index has not changed significantly in the course of 18 years under study, and there have been fluctuations in a short run. Reducing unemployment and inflation rates, promoting the culture of the using non-interest-bearing deposits (Gharz-ol- Hasane), as well as reducing bank interest rate comprise strategies for improving this indicator in Iran.