Part 1 of a three part series in which Dr Shaykh al Muhaddith Mohammad Akram Nadwi provides a general framework for discussing Islamic finance.
A justification – How can Muslims determine if a financial contract or institution is in compliance with Islamic financial transaction principles? To know how, read on…
Islamic microfinance is becoming an increasingly popular mechanism for alleviating poverty, especially in developing countries around the world. The Islamic finance industry as a whole is expected to reach over $2 billion dollars in 2012 and is a continually growing sector due to its ethical principles and prohibition of riba (interest).
Cross-posted from The Wall Street Journal By KATY BURNE A group of 16 banks resolved a quandary that has dogged the $1 trillion Islamic financing market for nearly three decades:
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.
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.
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??
Lessons from the financial crisis we are seeing.
Phillips argues that this “financialization- a sign of late-stage debilitation, marked by excessive debt, great disparity between rich and poor, and unfolding economic decline, constituting the third major peril hanging over the future of the US†[in addition to oil and Christian fundamentalism]
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