Personal Statement Of Islamic Economics And Finance

Islam is more than a religion, it’s a culture, and as such has an effect on political, social, and economic aspects of life—this is especially true outside of the Western world. Followers of Islam believe in full submission to God and this submission is practiced in the secular realm (Taha, 114). Of the five pillars of Islam, one (the zakat) has a direct affect on economic policy and ethics. The culture of Islam has shaped economic and business guidelines In the Islamic World and continues to do so. Cultural ideals attributed to the Qur’an or the Prophet Muhammad, have been a vital source for economic and business practices that have helped to shape the history of many Islamic nations, and are guiding the creation of policies

In order to analyze this section, we need to talk about the economic development of the first Muslims, that produced the Muslim social classes. Because the lands of Egypt were very fertile, the economy of the Muslim world enhanced leaded by the agriculture sector. The owners of the land were, together with the religious authorities and the military sector, the powerful population of the Arab world of the 7th century. This changed through time, and in the 11th century, the Hawala was establish, an early informal transfer system that facilitated the financial transactions of that time. On the other hand, there was only one currency for all the Muslim world, the Dinar. This advantages make of the traders and bankers the powerful people of the Arab world. Another big change was the role of women, in Christianity women had some freedom over themselves even though they depended on men, however, when Muslims conquered Egypt, the power of women over themselves was reduced. Even though it seemed that they care about women and in the Quran and in the Hadith were some rules about that, women were treated worst. Finally, we have to talk about the tensions between Islam. After Muhammad’s dead in 632, there was a dispute about who should succeed him. The Muslims split in two: the Shiites and the Sunnis. The Shiites support that the successor of Muhammad should be a relative from him, while

The Islamic world valued commerce and fostered active networks of exchange. Muslim merchants used the Silk Roads, Sea Roads, and Sand Roads of the Afro-Eurasian world, and the Islamic world promoted long-distance economic relationships by supporting a wealthy, highly developed, "capitalist" economy. Islamic civilization also eased a massive exchange of agricultural products and practices. Some of these Indian crops later found their way to Africa and Europe from the Middle East. Technology also distributed widely within the Islamic world. Ancient Persian techniques for obtaining water by drilling into the sides of hills spread to North Africa. Muslim technicians made improvements on rockets developed in China. Techniques for manufacturing paper

"Islam" is derived from the Arabic root salaama meaning peace, purity, submission and obedience. Islam stands for making peace by submitting to the will of God and obeying His law. Jews and Christians view Islam as the latest of the world's great religions. However, worldwide Muslims (sometimes written "Moslems") understand their universal religion as the "final religion" and the "primal religion."

An Islamic financial institution such as financial banking has been established before two or three decades ago in the aim to provide satisfactory financial facilities to the interested parties as compared to conventional banks. In 1974 Dubai Islamic bank which is the first Islamic commercial bank was established and later Islamic Development Bank (IDB) has been established in 1975 (Hennie and Iqbal, 2008).

To invest in Shariah-compliant listed equities to provide the capital growth over the medium to long term through the diversified, but growth-oriented portfolio.

Knowledge, attitude and practices, (KAP) , Islamic banking and Islamic shariah laws and other financial institutions play a vital role In the economies through its globally suplus fund to those with deficit

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

Apart from that, Islamic Banking contributes towards the economic development and prosperity within the principles of Islamic justice. The mechanism of Profit-Sharing establishes a direct relationship between the benefit of the bank and the entrepreneurs. Islamic Banking aims to facilitate efficient allocation of resources. This means, in the case of Islamic banking profitability of projects works as deciding factor as to where the financial resources will go and to what extent. The basic mechanism of Islamic banking system is such that financial resources are allocated based on the profit. It means financial resources are allocated to projects which are considered more

Islamic banking refers to a system of banking that complies with Islamic law, also known as Shariah law. The underlying principles that govern Islamic banking are mutual risk and profit sharing between the provider of capital (investor) and the user of funds (entrepreneur). In other words, it ensures an equal contribution for all parties involved, whether in profitability or in case of any loss occurred. Activities that involve interest (riba), gambling (maisir) and speculative trading (gharar) are prohibited (Bank Negara Malaysia, 2010). Islamic banking is interest free banking; making it compulsory to take active part in business profit and loss sharing. Islamic banks prefer to take less risk (Shaikh & Jalbani, 2009)

Islamic Capital Market is a major part of the overall Islamic Financial System especially in providing the component of liquidity to the otherwise illiquid assets. One of the most popular instruments used today in Islamic Capital Market is Sukuk. The structures of Sukuk based on Ijarah, Musharakah, Mudharabah and hybrid forms have evolved. Under any circumstances, these innovations have appeal to many Shari’ah issues and arguments. Therefore, this article aims at analyzing the challenges of realizing Maqasid al-Shari’ah in the Islamic capital market, focusing on sukuk instrument. In particular, this study evaluates on the approach of one of the most popular sukuk structure, namely, sukuk al-Ijarah in the light of the perspective of Maqasid

Entrepreneurship is a part of Islamic economics and businesses. Entrepreneurship is the pursuit of opportunity beyond resources controlled. Prophet Muhammad SAW and his companions are examples of this. There are a lot of Muslims that are successful entrepreneurs in the world and Islam always invites all Muslims to be an innovative and active entrepreneurs. Entrepreneurship is an integral part of Islamic religion. The Muslim entrepreneurs are ‘khalifah’ and have the responsibilities to develop prosperity and sees business as part of ‘ibadah’ or good deed. Success in Islam is not merely measured by the end result but also the way and means of achieving them.

Financial equity is a standout amongst the most critical lessons of Muslims. As indicated by the Qur 'an, the essential mission of all messengers of God was to set up equity in this world (Al-Hadid 57: 25). Most the Qur 'anic lessons are guided towards empowering individuals to live with each other in peace and to satisfy their shared commitments genuinely and steadfastly to guarantee equity and general prosperity (falah). Inside the domain of this mission of the Messengers, the Qur 'an predicts, and which is all well and good, that treachery drives eventually to demolition (Ta-ha 20: 111).

“We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind.”

The Hisbah is a religious institution under the authority of the state that appoints people to carry out the responsibility of enjoining what is right, whenever people start to neglect it, and forbidding what is wrong, whenever people start to engage in it. The purpose of this is to safeguard society from deviance, protect the faith, and ensure the welfare of the people in both religious and worldly