In this chapter, Professor Dr. Abul Hasan M. Sadeq provides a rigorous analysis of domestic development finance, redefining "savings" through an Islamic lens. Unlike mainstream economics, the Islamic definition accounts for spiritual obligations: Savings = Income - (Consumption Expenditure + Spending in the Way of Allah). This spiritual expenditure includes Zakah, Sadaqah al-Fitr, and other charities, which are treated as essential deductions rather than optional allocations of surplus.

A primary focus of this research is the "Moderation Effect" of Islamic living on saving potential. Professor Sadeq argues that Islamic ethics inherently boost savings by prohibiting ostentatious lifestyles, "snob" consumption, and "bandwagon" spending. By strictly enjoining followers to avoid both wastefulness and miserliness, the Islamic code of life naturally curbs excessive consumption. This discipline is applied to both household and corporate sectors, creating a favorable surplus for investment. The study demonstrates that when subjective factors (the Islamic value system) align with objective factors (income and institutional settings), an Islamic society possesses a unique and robust capacity for self-funded economic development.

Core Concepts: Domestic Finance, Moderation Effect, Islamic Savings Model, Zakah, Consumer Behavior, Resource Mobilization, Value-Driven Economics, AUB.