Can Islamic financial engineering solve growing global inflation? (Countries of the Middle East and North Africa)

The Islamic financial system plays a vital role in the process of economic development in many Muslim countries. The study is aimed at determining the role of the Islamic financial system and traditional financial systems in the economic activities of countries. The article builds mathematical models that reflect the economic and social effects of the Islamic financial system and the traditional system, which depends mainly on the interest rate. The Islamic model of finance is based on economic, financial and investment principles, the violation of which is not permissible. We are talking about the following provisions: interest-free lending, the accumulation of money is not approved, instead, the motivation to participate in investment and commercial activities is welcomed. It also prohibits high-risk activities that are considered illegal, such as gambling. Models of the traditional financial system rely on an interest rate that can promote development, which simultaneously cause inflation and lower real wages, and exacerbate the trend towards increasing poverty and thus reducing the welfare of society as a whole. The study analyzed the economic and financial indicators for the countries of the Middle East and North Africa. The work found that Saudi Arabia, the United Arab Emirates, Qatar and Bahrain, respectively, occupy a leading position in the field of Islamic banking.