Finance and Economics rss

The Failure of Islamic Finance(53)

July 15, 2010

The Islamic finance industry has often battled with the question: How Islamic is Islamic banking? The question’s pertinence was raised by Sheikh Muhammad Taqi Usmani who said that 85% of Sukuk, or Islamic bonds, were un-Islamic.

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Credit Cards: Silver Lining During the Recession

While we are all worried about the recession, and many people are facing tough times with downturned businesses and lay-offs, we are still taught to say alhamdulillah ‘ala kulli hal. One of the positives that I see coming from this crisis is that this recession may perhaps be the wake up call people needed to [...]

Islamic Finance: An Introductory Course. Part-1 (Miller-Modigliani Theorem)

For Muslims, this is an intriguing conclusion. Banks, the source of so much riba, would be really quite useless if the tax rules for dividends and interest were either uniform (i.e. tax deductibility on both) or if there were no tax (like in an Islamic state). So, if perfect market symmetry existed, say in Dubai (where there is no tax), theoretically debt would add no value. Had we had no debt, wouldn’t we have been so much better financially in the world these days??


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