In this authoritative chapter published by the International Institute of Islamic Thought (IIIT), Professor Dr. Abul Hasan M. Sadeq explores the mechanisms for generating and deploying capital within a Shari'ah-compliant economy. The research addresses a critical challenge in development economics: how to mobilize national resources without relying on interest-based debt instruments.

Professor Sadeq argues that the Islamic framework encourages the mobilization of resources by penalizing idle wealth (through Zakat) and incentivizing productive investment (through Mudaraba and Musharaka). By shifting the economic focus from guaranteed interest to risk-sharing and profit-sharing, the system aligns the interests of the capital owner with the entrepreneur. This work provides a strategic roadmap for resource-poor nations to utilize internal capital more efficiently, emphasizing that ethical investment behavior not only fulfills religious duty but also drives sustainable, real-sector economic growth. This chapter remains a cornerstone for understanding the transition from traditional to Islamic development finance.

Core Concepts: Resource Mobilisation, Profit-Loss Sharing (PLS), Capital Investment, Zakat as an Incentive, Risk-Sharing, Islamic Development Finance, AUB.