Analyzing the Institutional Role of Islamic Contracts in Economic Growth and Development

Throughout Islamic history, contracts have played a special role in shaping Muslim economic interactions. Theoretically, contracts have had a great impact on shaping the economic thought of Islamic scholars in analyzing the relations of economic actors; therefore, it is possible to imagine different positions for contracts in Islamic economics. The present study seeks to examine the functions of Islamic contracts as an economic institution in the economic growth and development of societies. The results of this study show that Islamic contracts, due to their nature, moral, and human characteristics can reduce the costs of exchange and increase efficiency and productivity of economic activities. It also Provide a platform for fair distribution of resources and therefore guarantee property right.