Quantifying the value of Debt a comparative analytical study During the Period (2000-2022)

The research aimed to develop a financing or lending method that aligns with the principles of Islamic Sharia while simultaneously meeting the requirements of modern banking practices particularly with regard to the time value of money. Lending and repayment. The proposed approach involves selecting a fixed quantity of a rare. Essential commodity and using it as a standard unit for quantifying the value of loans or debts. This is achieved by dividing the loan value by the price of the chosen commodity in a designated base year thereby determining the equivalent number of commodity units. These units are then used to assess changes in the loan’s value over time based on fluctuations in the commodity’s market price effectively reflecting the real value variation of the loan. The study identified wheat, Sugar and gold as the most suitable commodities for this purpose due to their inelastic demand and ability to provide a stable and accurate quantitative evaluation of loan value throughout the repayment period. This method ensures that both lender and borrower share the risk of value changes presenting a fairer alternative to interest-based systems. Where the benefit accrues primarily to the lender. Based on these findings. The researcher recommends the adoption of this commodity-based financing model in financial and banking operations as a substitute for conventional interest rates. The model has the potential to increase loan demand and enhance banks’ contributions to financing economic and social development projects all while avoiding interest-based (usurious) financial practices.