Shariah Principles Governing Islamic Law Essay

A rule making body issues authorative shari’a auditing standards for all Islamic banks and other Islamic businesses and it will be the most effective way to eliminate problems within the Islamic economy. The most effort to develop a body of consistent standards for shari’a audits has been undertaken by

The Quran tenets encompass various life aspects that include God’s teachings, the way of harmonious living in the community, moral virtues, the regulations on financial matters, and specific obligations among Muslims males and females. In general, the sharia law is an extended platform that provides guidance on family affairs, criminal judgment, political perception, and economic factors. The law thrives on the precepts of religious attributions to God. Since the emergence of sharia law, various Islamic nations have endorsed most or parts of the

Shariah literally means path or way to place the water in the desert. It is because many Arabs who lived during the time of the Prophet (PBUH) is influenced by the ways of the desert. Water and direction where the water is come is important for their lives. Shariah is like the direction to go to something good and useful for our good.

For the purpose of this analysis I am going to compare each nations legal tradition, and provide the definition of the rule of law. Iran is considered to be an Islamic country, a country that practices a sacred legal tradition and more specifically Islamic law. In this type of legal tradition there is no separations between religious and legal entities. Islamic law is proclaimed as the basis for all law, including harsh Islamic criminal law, punishment that is based on retribution (Dammer, Albanese p. 57,58). In Iran, there is a great influence to have Shari’a law further integrated in to the national law, the Quran is the Muslim’s holy book and therefore is considered to be the most important source in Shai’a law (Dammer, Albanese p. 57,58). The Quran is around 6,000 versus, although only 80 of those could be considered legal terms (Amin, 1985a, p. 9). Islamic law is unique compared to other legal traditions due to the fact that it is not based or representative of customs or traditions, such as those legal traditions that are based on code law, such as the Civil law that is practiced in Italy and much of the Western World (Dammer, Albanese, 2014).

This research will be defining the concept of Sharia law, and the types of crimes that comes under Sharia law and the punishments given for each for them. The analysis will be determining and exploring the differences of Sharia law and English law. The discussion will be based on the possible idea of implementing areas of Sharia law to the English legal system, and the problems that this will cause in the English legal system in reflection to the Human Rights Act 1998.

There are certain Rules Which Create Prohibition, Approvals or Disapprovals in Islam. We Will see in the following discussion that how these rules are Categorized. As Muslim Jurits have use the word Hukum-ul-Shari for these rules we will also see that how the jurists have defined it. These rules have been given in form of Wajib Makrooh Mustahaab Haram Mandub and etc. We Will try to differentiate them from each other by the views of Classical Jurists. These rules are there to control the life style of the human beings specially Muslims. And these commands have been given through a communication and this communication between Allah and the Mankind has been defined by Immam Shafi.

In much of Northern Africa (e.g. Algeria, Morocco, Tunisia, Egypt and Libya), Islamic law exists as the foundation of these regional countries. Within many of these predominantly Islamic African nations, political law and Islamic law intertwine. With this being said, all homosexual conduct is criminalized in Northern countries such as Algeria, Morocco, Tunisia, Egypt and Libya. “Morality laws,” which are religion-based laws, tremendously limit the freedom of expression of LGBT individuals (“Sexual Orientation Laws In The World – Overview”). People are detained for infraction of Islamic values. They are often harassed, arrested, and tortured (e.g. whipped, beaten, burned) whether for a confession or simply as punishment. There is no regulatory order of conduct for these police operations, as it is simply stated that they are to defend their countries ' cultural values (In a Time of Torture).

A western scholar called Joseph Schacht stated that the close of the door of Ijtihad had occurred by the beginning for the 10th century.

Islam is the world’s second largest religion with over 1.65 billion followers, which constitutes 24% of the world’s population (Kettani, 2010). Islam is a religion that encompasses all aspects of a Muslim’s life, from issues of an ethical, social and civil nature to economic and legal matters. In this way it is quite different to the secular view normally held in the West, which separates business decisions

With its assets estimated to total nearly $1 trillion globally, Islamic finance remains tiny compared to conventional finance with its tens of trillions of dollars. The market in Islamic bonds, or sukuk, is believed to total about $50 billion, roughly 1 percent of global bond issuance. In view of the financial crises which have been affecting the whole world, a solution in the name of Islamic finance could be introduced. As the global economic slowdown becomes more severe and protracted, many countries will be seeking alternatives, and Islamic finance can seize these new opportunities by offering standardized Islamic finance products with prudent regulations and supervisory arrangements. The beauty of the Islamic finance lies in its balanced and integrated approach towards a development policy that is urgently called for in the current crisis, caused by the awesome importance attached to the promotion of the financial sector alone. Islamic Finance is a viable alternative to conventional finance.

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.

The Accounting and Auditing Organization for Islamic Financial Institutions established on Safar 1, 1410 Hijri (February 26, 1990) at Algiers and registered in Bahrain on Ramadan 11, 1411 Hijri (March 27, 1991) has so far (April, 2004) set the following Financial Accounting Standards, Auditing Standards, Governance Standards & Code of Ethics for Accountants & Auditors of Islamic Financial Institutions:

For interest-free banks, the mode for financing personal loans and pushing their own type of banks forwards is filled with hurdles due to the profit/loss sharing rule. Same percentage of returns is being offered by both the banks to their respective depositors, and largest fraction of their funds is forwarded towards the financing of durables. Murabaha is the mode of finance that interest-free banks make use of. Samad (2004) made contribution to the field through his comparative study of Bahrain Islamic bank’s performance against that of other conventional banks. Making use of the T-test, he explored same outcomes in terms of profitability and risk, whereas no variation was detected in liquidity of the two types of banks.

Islamic banks use a number of non-interest-based finance modes. The use of a mode is dependent on the nature, purpose and size of transactions. In selecting the modes, it is very much the know-how and knowledge of the Islamic banker which comes into play. These modes could be classified as debt type instruments, quasi - debt type Instruments, profit and loss sharing or hybrid instruments.

The recent 2007 – 2009 global financial crisis has led to series of failures of many conventional banks throughout the world. Furthermore, some empirical researches have evidenced the superiority of Islamic banks’ performance over its conventional counterparts during the crisis period (Hasan & Dridi 2010; Parashar & Venkatesh 2010). These led to increase in global attention towards stability of Islamic banking system.