Islamic Finance: Resources
The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and financial institutions emerged in response to Muslim societies’ needs of shari’a compatible alternatives to conventional banking services and investment vehicles. The principles of shari’a strike a balance between the needs and interests of individuals and the society. In shari’a, the interests of the ummah (nation) are given precedence over those of individuals in case of conflict or disagreement. However, the interests of individuals are well maintained under shari’a, thanks to a well established system of contracts and contractual settings that cover all aspects of a Muslim’s life (personal, legal, commercial, financial, etc).
Islam bestows particular attention on the broader economy and it outspokenly encourages investment and spending. However, not every individual has the capabilities and expertise to directly invest his/her money in the lookout for profit. Here inter Islamic banks that provide a worthwhile vehicle to mobilize and invest the savings of individuals for the benefit of those individuals, the banks themselves, and the broader society... read more »
Random Term: Ba'i al-Mu'atah
A contract of sale in which the buyer picks up the goods and pays the price to the seller who accepts it without both parties sitting down to draw up a contract. This is the case where retail trade comes into play. For example, in a supermarket, a customer would proceed to choose a specific article ... read more »