Usury (Riba), Gharar (Uncertainty) & Maysir (Gambling)

more followers. Also banks could tie into allowing more people more opportunities in the Islamic

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

In the world of finance and financial services, banking has been around longer than any other segment of that world. For more than two millenniums, bankers have served as “money changers” who aided people in exchanging foreign for local currencies. As this practice grew and many began to throw their funds into the banking system, the services that banks performed multiplied. Loans were granted and bankers collected interest. Most of

Interest is stated in terms of a percentage rate to be applied to the face value of the loan.

Peoples had accumulated assets of $556m. These assets were funded by short term consumer deposits, consisting largely of 3-month fixed rate savings certificates. These savings certificates were highly affected by interest rate fluctuations. The long term loans provided to people generate interest earnings which are do not increase or decrease with the interest rate fluctuations. Therefore, there was a mismatch between the interest rates earned by the bank and the interest rates that it had to give

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

Similarly the selling of barley for barley is Riba except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount.” (Umar). From an economical perspective, what the Prophet of Islam is referring to here is the idea that only the actual value of dates should exist in any trade transaction. For example, a bank giving out a loan for 100,000 dollars with an interest of 10% means that the 10,000 interest to be paid does not actually exist in the economy and hence to the prophet this is considered riba because the bank is gaining money out of nowhere. In the Sharia, the modern day solution to this banking issue is Islamic banking which offers; “..more just and equitable distribution of resources; more responsible and profitable lending due to the necessarily closer bank-client relationship; less volatile business cycles; and more stable banking systems.” (Evans, 1987)

Iran is a member of leading international organizations, and it has ratified 13 International Labor Organization Conventions including the elimination of forced labor, child labor and discrimination. It is also a member of the United Nations Industrial Development Organization, International Co-operative Alliance Asia-Pacific [ICA- AP], The International Co-operative Alliance and several other institutions.

No concept or application of interest rates, because interest or riba (in Arabic / Islam) is against the Shariah law (Sapp, 2010, p. 3)

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

Gambling contains risking something of importance on an indefinite event in hopes of winning something of greater value. Although gambling can be a major problem it is done throughout the world in casinos, horse races, sporting events, and at a convenient store. Many people that gamble become addicted and begin to crave for the game causing it to be harmful psychologically and physically to the body. Anyone that gambles is at risk of being addicted whether you are male or female it may become a problem but there is help out there for you. This problem is treated the same as any other addiction with help from professionals.

r = required rate of return on borrowings (i.e., cost of debt or interest rate)

Credit cards are currently probably one of the most popular methods of payment when it comes to consumer transactions. From an Islamic Finance perspective, credit cards generally have one major drawback in that they charge interest on

The word Riba 'ربا 'is an Arabic word which means to increase, grow, augment, educate

     Interest is the fee paid for borrowing money. Most individuals or business owners pay simple interest on a short-term loan, which is usually a loan of up to 1 year. The amount of interest charged by a bank depends on three factors: