Islamic Finance And Islamic Financial Experts

Main competitive pitch of Islamic banking is in Sharia compliant and interest free. But the real business of Islamic banking is producing profit.

Islamic window is a concept introduced by Malaysian central (Bank Negara) bank where conventional banks also offer Islamic products beside conventional products in same environment by same staff. Initially, Islamic bank facing fierce competition from long establish conventional banking system. Islamic window introduction can reduce this since Islamic products also became a source of profit for conventional banks. A few conventional banks offering Islamic banking service under Islamic window has achieved an important volume of transactions in the Islamic window that they even set up Islamic bank subsidiary full fledge.

Where C is a consumption, I - investment, G - government expenditure, and (X-M) is the difference between the imports and exports. Fundamental assumption of the GDP is that spending in any of these areas will increase the GDP and in turn, represent the increased growth of the economy. However, some economists argue that GDP ignores the quality of the goods produced, efficiency

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

banks. Islamic banking is also growing a lot in the Arab world, according to the survey, it

the First International Conference on Islamic Banking, held in Dubai in 1979, it has not been widely implemented throughout Islamic financial system (Bendjilali and Khan,1995, p. 16). It is a relatively new and very little used product available for Islamic banks. The paper claims that MMQ is more in line with Shari’ah teachings and as such should be used more by Islamic financial institutions. The study indicates that MMQ possibly has a comparative advantage for both financiers and the customer when compared with

Islam by itself has a different regard to a world and by that the socio-economic activities are affected. Accounting is an institution which helps society in achieving socio-economic objectives. Research on Islamic accounting is a field in which there is a lot more to explore. Many methodologies are used to develop a theoretical framework for Islamic accounting. One of the main problems in determining the objectives of Islamic accounting is diversity of users.

The establishment of Islamic Banking in Malaysia offer contemporary financial services in conformity with Islamic Shariah. Interest-based banking considered to be practicing Riba in financial transaction has Islamic banking is clearly meant for creation of provision for Shariah approved financial transactions.

Global Islamic banking continues to be an exciting growth story characterized by robust macro outlook of core Islamic

In addition, Islamic bonds are still far superior as compared to conventional binds, underpinned by the following factors: • Fairness and transparency. The financier and customer share the risks and rewards based on an agreed profit-sharing ratio. The roles and responsibilities of the parties to a contract are also explicitly disclosed and transparent. Asset-backed transactions. Islamic financial transactions must be backed by an underlying tangible asset or legitimate productive activity. This discourages over-exposure of the financing facility beyond the value of the underlying asset, and hence provides continuous security to the investors Ethical investment. Islamic finance prohibits the charging or paying of interest, and imposes restrictions on unethical and speculative financial activities

The prosperity and peace of a society much or less depends on its economy. While for the smooth running of both, there are several instructions in Islamic Shariah and allows what is right and forbids what is wrong. When we talk about financial issues, Islamic Shariah strictly condemns Riba. The question may arise why Islam prohibits Riba? While it was already in practice before the advent of Islam and still it is a part of different economic systems throughout the world. It is simply because Islam gives respect to human beings and condemns all the attempts that are harmful and disgraceful for humanity. Therefore, Riba is not only forbidden in Islam but economic experts are also in search of its substitute. Since borrowing on interest rate creates several issues including: less efficient allocation of resources, indebtedness, unemployment and economic instability. While in society it causes injustices, inequity, poverty and imbalance etc. In this paper we are discussing how Riba causes imbalance in the society and instead Riba what Islam demands from its followers.

This is a multilateral financing organization. It has its headquarters in Jeddah, Saudi Arabia. Islamic Development Bank was formed in the year 1973 by the Finance Ministers of member states. It was formed during the Organization of Islamic Cooperation (formerly known as Organization of the Islamic Conference). The King of Saudi Arabia (Faisal) supported the creation of this organization. The Islamic Development Bank started operating on October 20th, 1975 (Schiavone, 2015). Currently, the bank has 56 member states who are the shareholders of the bank. By the year 2013, the bank decided to triple its authorized capital to $150 billion. This move was meant to better serve non-member countries and Muslim in members. The Islamic Development Bank has a good credit rating of AAA, which it got from Fitch and Standards & Moody’s. A large portion of the paid-up capital of the bank is held by Saudi Arabia. It holds approximately one-quarter of the capital. This bank also plays the role of observer at the United Nations General Assembly.

Besides that, Islamic Banking is growing at a rate of 10-15% per year in this modern era with the signs of consistent future growth. Islamic banks have more than 300 institutions spread over 51 countries, including the United States

Thanks to the growing national economies in need of alternative investments and financing, and a large Muslim population of about 250 million (in Sub-Saharan Africa), the region is a budding market with new Islamic finance opportunities. Behind the regional pioneer Sudan, leading the pack of fresh entrants is Nigeria, followed by Kenya and South Africa. While the former two countries have already made considerable strides in regulatory reforms (for Islamic banking, Sukūk and Takāful), South African tax regulators are expected to put the finishing touches on their rules later this year.

This study is undertaken to understand the concept and features of Islamic banking and conventional banking, the similarity and differences between the two systems and their economic implications. Generally, a financial institution or a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets is given the name of bank. its source of generating revenue and cost of funds is charging of interest through lending and also accepting deposits for interest respectively. Interest is the major driver of operations of conventional banks although other valuable services including guarantees, funds transfers, safety of wealth, facilitation in international trade etc., also form a substantial part of income of banks.