Economy and All That

[imran1976]

Good points brother Imran.

In the event where we are not very optimistic about Islamic economies sprouting around us, here at SF, the appropriate thing for us will be to devise ways to convince potential clients to go for the same, that is, Islamic way to handle economic matters. Who can listen to that? How can it reach the relevant people. Basically the armchair work - the only thing we can do.

The reason for not being optimistic is that we have puppets installed in Muslim countries by the zionists , they will say YES SIR to anything which comes from them. The other reason, in my view is, our Scholarship for the last 100 years has been giving us solutions from within the system (capitalistic). They can, will ll due Respect, take another 100 years; it ain't gonna work/nothing gonna change.

What we need is to go back to the original/real Islamic economics- We the armchairs, can at least be clear in our minds as to what constitutes the real Islamic economics.

[Maripat]

The reason for not being optimistic is that we have puppets installed in Muslim countries by the zionists , they will say YES SIR to anything which comes from them.

Perhaps not be the Zionists but the non-Islamic power structure of the world today is very effective indeed.

The other reason, in my view is, our Scholarship for the last 100 years has been giving us solutions from within the system (capitalistic). They can, will ll due Respect, take another 100 years; it ain't gonna work/nothing gonna change.

As I see from Indo-Pak sub-continent we have been struggling with the colonial aftermath. Or perhaps not struggling - very sadly. One can not ignore the reality that even opening your mouth in favour of Islam makes you a suspect in too many eyes. In view of this the maneuvering space for Muslims is at an all time low. And honestly speaking it is not relevant whether anything will work or not. We are supposed to do some thing and we are answerable for that only. That is what we got to focus on. Hazrat Mujaddd-e-Alf-Sani kept writing to the Kings of the time, at a great risk to his personal well being, and the result is for us all to see. We can still see Islam in India but not in Spain. But I digress.

What we need is to go back to the original/real Islamic economics- We the armchairs, can at least be clear in our minds as to what constitutes the real Islamic economics.

That, indeed, is the burden of the present thread.

[mh16388]

And honestly speaking it is not relevant whether anything will work or not. We are supposed to do some thing and we are answerable for that only. That is what we got to focus on. Hazrat Mujaddd-e-Alf-Sani kept writing to the Kings of the time, at a great risk to his personal well being, and the result is for us all to see. We can still see Islam in India but not in Spain. But I digress.

aoa,
i know you must be tired of hearing it from me. but that was an excellent point.

[imran1976]

As I see from Indo-Pak sub-continent we have been struggling with the colonial aftermath. Or perhaps not struggling - very sadly. One can not ignore the reality that even opening your mouth in favour of Islam makes you a suspect in too many eyes. In view of this the maneuvering space for Muslims is at an all time low. And honestly speaking it is not relevant whether anything will work or not. We are supposed to do some thing and we are answerable for that only. That is what we got to focus on. Hazrat Mujaddd-e-Alf-Sani kept writing to the Kings of the time, at a great risk to his personal well being, and the result is for us all to see. We can still see Islam in India but not in Spain. But I digress.

That, indeed, is the burden of the present thread.

Than let me say, to get back to Islamic model of economics or to get rid of capitalistic system; we must recognize and get rid of the following:

a) Riba/interest/sood/bayaj (+ all other names) is absolutely haraam.
b) Paper money is fake/fraudulent designed to trap people.
c) Banking in it's current format is a tool to strengthen the capitalistic system.

[Maripat]

Programme on Shariah Complaint Business

If anybody from SF attends it then a report will be appreciated a lot.

[transitory]

Not sure if anyone already shared this link;

http://www.islamic-finance-conferenc...ank-stock.html

[Maripat]

Not sure if anyone already shared this link;

http://www.islamic-finance-conferenc...ank-stock.html

It seems we have our armchair brothers there also:

DEAR Dr Ahmad Mohamed Ali, president, Islamic Development Bank (IDB) Group;

In conclusion, Dr Ali:
Islamic Mega Bank + OIC Stock Exchange Content + Housed on Trading Platform = Balance Growth of Islamic finance to move beyond the country shores and for all of mankind!

Respectfully submitted and Wasalaams.
Rushdi Siddiqui
The writer is Thomson Reuters’ Global Head of Islamic Finance based in New York

[transitory]

Mideast Money-No windfall from Qatar ban on Islamic windows

http://www.halaltamweel.com/4918/%20...rint=true.aspx

[transitory]

Since the inception of Islamic Banking in Middle East, Europe, South Asia and elsewhere, the predominantly used Islamic modes of financing had been Murabaha, Ijarah and similar contracts and all of them have one thing in common.



All these contracts while executed result in creation of a debt based liability and all of them are almost every time priced using LIBOR and similar interest based benchmarks. Ideal Nature, Financing, Islamic Banking, Middle East, Europe, South Asia, Salman Ahmed Shaikh


Islamic financial institutions built their reputation and gained acceptance from masses having promised socio-economic benefits of an egalitarian financial system based on Islamic principles.

But, in currently used debt based modes of financing, Islamic bank does not commit a single penny unless the customer signs the unilateral undertaking, and by way of unilateral undertaking, the customer is bound to purchase the asset (or lease in Ijarah) and pay the bank, the markup price of the asset (or rentals in Ijarah) which is calculated using KLIBOR/LIBOR as a discount rate. Only when the customer agrees to provide that undertaking, will the bank think of purchasing the asset for subsequent sale/lease.

Islamic banking literature and speeches of the pioneers often used analogical examples which argue that the current system is ‘first aid’ treatment and though that does not bring any long term cure, but it is nevertheless, what can be done immediately to stop the disease from worsening.

But, the disease has been worsening and Islamic banks have largely failed to offer anything beyond ‘first aid’. In fact, nowadays, rather than offering anything substantially different and beyond first aid, Islamic banks have surprisingly conceded that now the patient does not need anything other than ‘first aid’.

Unfortunately, keeping aside the very loose and weak base of Islamic finance and banking from Islamic sources of knowledge (i.e. Quran and Sunnah), the Islamic banks have also fell short of providing even the benefits of modern day interest based banking. Islamic banking spreads - the difference between lending and deposits rates – are much higher than conventional banks in Pakistan.

Now, Islamic banks have become banks for the rich elite in urban localities and for the businesses that want to expand their size through ownership of ‘new’ assets. Islamic banks have no products for financing education, health, microenterprises etc. Their clients are mostly blue chip companies which can obtain financing from many other financial institutions as well. Often times, when these big-size companies take financing from Islamic banks, it is largely a favor to Islamic banks than the other way round.

One can say that Islamic banks are commercial institutions and not charity based institutions. Yes, this would not have been too much disappointing had they done their operations with this proposition only.

But, the irony is that they built up the case for Islamic banking and finance citing the prohibition of Riba from Quran and Ahadith, its evil consequences in life hereafter, benefits of Qarz e Hasan, fruits of participatory and equity modes of financing and then offered such products in practice and have persisted with it which have created a happy and healthy commercial marriage and co-existence and long term complimentarity between conventional and Islamic banking.

http://www.halaltamweel.com/2012/04/...*1_*1_*1_*1_*1

[Maripat]

Both of these critical articles are concerned with initial hick ups.
Qatar government's attempt to provide a level playing field is exemplary - and exemplary means that other governments should follow suit. And the other author, Shaikh Salman Ahmed Hyderabadi seems to be siding against Islamic banking and financing. Wallahualam.