...Islamic Banking Malek Alraddadi 02-24-2014 FIN-610 Introduction This study debates upon the history of Islamic banking. What are the ethical issues involved in the implementation of Islamic banking. Since the birth of Islam what type of steps are taken and by whom these measurements were taken. Besides this this paper also declares the response and customers point of view regarding Islamic banking with the help of different studies. History of Islamic banking The term Islamic banking got regular in the 1960's, however the systems and thoughts of the framework were suggested and operated since the beginning of Islam. Numerous studies and explores have indicated that Islamic money components were utilized within the Muslim world all around the Middle Ages; in leading exchange and business exercises. Charging investment on credits was not regular in those days. The first run through investment bearing credits were generally utilized within the Muslim world, particularly in the Middle East, was throughout the Ottoman Empire's governed in the fifteenth century. Mehmet Ebusuud Efendi, the senior Islamic minister of the Ottoman Empire, issued a fatwa (decision) permitting the charging of investment and thinking of it halal (allowable) as long as it was underneath 10%. Despite the fact that it was clear in The Holy Quran that investment was strictly disallowed, practically nobody could challenge the senior Islamic priest's decision since testing him might mean testing the...
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...1. Introduction History of Islamic Business Transaction Without a doubt, the history of Islamic Banking is quite interesting. Since the medieval era (1,000 – 1,500 AD), businesspeople in the Middle East engaged in financial transactions. At this time though, these transactions used the same financial principles as the Europeans. Early History of Islamic Banking Since the Arabs of the Ottoman Empire traded extensively with people in Spain, they also developed certain no-interest financial systems that worked on a profit and loss sharing method. These systems, in turn, financed trade and other business affairs. When the Middle Eastern and Asia began to be more important trading partners for various European companies, the Europeans opened banks in these countries – with many of these banks based on the interest-bearing financial system. As the trading relationship with the Europeans continued to play an important role, these types of financial institutions began to be more prominent outside of Europe. However, even when local trading business owners used these commercial banks, they often only transferred money between accounts. Both borrowing and depositing money was limited as the local population wanted to refrain from partaking in interest-bearing transactions. Further, certain co-operative institutions based on the original profit and loss sharing model still existed, but only in certain locations. As economic demands increased, avoiding banks was not an option...
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...Islamic Terrorist Groups: A Comparative Study of Terror Jason Schrand HSM 305: Survey of Homeland Security & Emergency Mgmt Instructor: Blake Cheary October 6, 2013 The phrase "Islamic Terrorist" conjures many images for different people. Many will recollect the acts of September 11, 2001 - the act of terror that led the United States first into an invasion of the Taliban-controlled nation of Afghanistan and then into the "Second Gulf War" with Iraq. While both wars made great progress toward the initial goals, namely the overthrow of the Taliban regime in Afghanistan and the Hussein dictatorship in Iraq, as the years went by and the war dragged on, seemingly endlessly, the Islamic groups faced by the United States and her Allies seemed to be wearing down the civilian desire to continue to wage war. What American civilians do not seem to understand is that not only does the multitude of groups have very nearly the same goals, but they are also willing to die for their cause and will be almost impossible to defeat unless they are hunted and destroyed. A study of the Islamic terror groups must include historic examples; Islamic extremism is not a recent development, nor has the ideology of the extremist believers changed much since the Islamic Conquests began in the 7th Century. In F.M. Mickolus' work International Terrorism in the 1980's, Mickolus wrote that since 1968 alone two-thirds of the known incidents of terrorism in the world had occurred in...
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...Jamiat-e-Islami, Islamic political party in Pakistan INTRODUCTION 1. The rise of Islamic militancy or the jihad culture in Pakistan was directly sponsored by the security forces of Pakistan and is a legacy of Pakistan’s creation as an Islamic state and Pakistan’s involvement in the creation of the Taliban and its rise to power in Afghanistan. Since the arrival of the United States in the region post-9/11 and its support for Pakistan in its fight against Islamic extremism, Pakistan’s home-grown insurgent forces have turned its fight against the state itself in its resistance against a stable and democratic government. This conflict has led to a growth in Islamic extremism in Pakistan’s border regions which have turned into safe-havens for fighters in Afghanistan in their war against the US and the Government of the Islamic Republic of Afghanistan (GoIRA). Evidence shows that these fighters still receive covert support from Pakistan’s Inter Services Intelligence (ISI) agency and elements of the Pakistani military. 2. Scope. This essay will first explain the roots of Islamic militancy in Pakistan including Pakistan’s involvement in the rise of the Taliban and home-grown extremist groups. This essay will then examine the nature and extent of the conflict between the Islamic militants and the Pakistani government and finally how this conflict is influencing the insurgency in Afghanistan. 3. Aim. The aim of this essay is to explain the causes and nature of the conflict between Islamic extremists...
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...The al-Qaeda terrorist network, headed by Osama bin Laden dsgsdgdsgdOn the morning of 11 September 2001, two hijacked Boeing 757 passenger jets were deliberately crashed into the Twin Towers of the New York World Trade Centre. It is known that the hijackers were the al-Qaeda terrorist network, headed by Osama bin Laden. This is one of the famous cults which people knows in 21st century. Here I will mainly focusing on how they persuade people to join them, the leader, Osama bin Laden’s family back ground and their recruitment process. Just like as many other cults, the leader, Osama bin Laden told his followers that they will gain supernatural rewards if they willing to commit suicide. He promised his followers that they will surly receive “a martyr's privileges...guaranteed by Allah.” Al-Qaeda programmed its members and formed a closed, oppressive society. This was accomplished by putting recruits through months spent within isolated training camps. These camps served much like cult composites, which historically have produced “brainwashed” followers after periods of isolation, information control, coupled with severe training. One captured al-Qaeda member Al-Owhali stated that he was first trained within an al-Qaeda camp in Afghanistan for a month and then moved to a “jihad camp”. Only after the conclusion of his training was the possibility of a “mission,” discussed, which might lead to his “torture”. This evolving process of training coincides with the often deceptive...
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...Mohsin Hamid’s novel The Reluctant Fundamentalist is a deeply introspective character whose story is an emotional rollercoaster. Changez is a Pakistani man who comes to America in pursuit of his own “American Dream,” and while working to achieve his dream he slowly begins to hate himself. Hamid’s novel is the story of the rise and fall of Changez’s relationship with America. The novel takes the form of a dramatic monologue, with Changez as the speaker addressing a mysterious American man, whom we learn very little about except that he is suspicious, and that he may be hiding something under his shirt. His story addresses his time in America from the beginning to the end. He watches himself turn into a modern day janissary of the American Empire, and this sickens him to the point where he can no longer live in America. The pressure of being a Pakistani man living in a post 9/11 United States drive Changez to the point of self loathing, where nothing but the comforts of home and family could repair his internal damage. Changez has the inability to overcome the nostalgia that follows with traumatic events in his life, and for this reason he becomes a reluctant fundamentalist, unable to live in America and follow the American principles of greed and capitalism. The late Benjamin Franklin once said, “The U.S Constitution doesn’t guarantee happiness, only the pursuit of it. You have to catch up with it yourself.” Changez understands this truth and works hard in his pursuit of...
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...Islamic Banking Operations and Regulatory Framework Workshop Organized by Centre for Banking Studies, Central Bank of Sri Lanka 24 – 26 January 2012 Colombo – Sri Lanka Sukuk: Shariah Guidelines for Islamic Bonds Presented By: MOHD NAZRI BIN CHIK Member, Shariah Supervisory Council of Amana Bank Head of Shariah Division, Bank Islam Malaysia Berhad AGENDA o Overview on Sukuk o Fundamental Shariah Requirements o Sukuk Structure o Example of Sukuk Structuring and Shariah Issues o Sukuk Trading o Bank Islam and Amana Bank Involvements in Sukuk Structuring Capital Market: The Heart of A Nation’s Financial System Overall economy are divided into: Real sector – produces the nation’s output of goods and services Financial sector – providing financing needed to fund the real sector REAL SECTOR Surplus Units Households Corporate Government Foreign Investor FINANCIAL SECTOR REAL SECTOR Deficit Units Indirect Funding Banking System & Financial Intermediaries Capital Market Direct Funding Source: Adopted from Professor Dr Obiyathulla Ismath Bacha (2010) Households Corporate Government Foreign Investor Introduction to Sukuk (Islamic securities) and Sukuk Market Sukuk market is one of the fastest growing segments of the Islamic capital market (“direct funding market”). Usually translated as Islamic bond is the most active...
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...whole scenario was the relative stability of Islamic Financial Institutions (IFIs). In the last decade, IFIs have witnessed an impressive growth and have begun to make an impact on the current financial setup. This paper aims to highlight the basic foundation of Islamic financial system and the development of different markets and institutions. It will then point out certain issues and challenges facing the Islamic Financial Institutions. HISTORY Early History: The history of Islamic Financial system goes back to 1,000 – 1,500 AD, during which the Middle Eastern tradesmen would engage in transactions based on Shariah. During that time, the Ottoman Empire Arabs had good trade relationships with the Spanish, and they established their financial systems without interest, based on profit and loss sharing basis. As time went by, Middle Eastern and Asian regions became important trading partners for European companies such as the Dutch East India Company, as a result of which European banks started to spread their branches in these countries, which typically were interest-based. Thus the conventional financial institutions became more dominant as Western countries started to play an important role in world economy. Although, credit unions and co-operative societies based on profit and loss sharing system continued to exist, their activities were focused on very small geographical areas. Islamic Banking Practice, Early Initiatives: Islamic Finance started to grow radically in the...
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...Note: This Introduction appears in Christopher Napier & Roszaini Haniffa (eds) Islamic Accounting (Cheltenham: Edward Elgar, 2011), pp. xiii-xx. The printed version may differ slightly from the text set out below, and the printed version should be regarded as definitive. An Islamic Perspective of Accounting: Introduction and Overview Christopher Napier and Roszaini Haniffa Introduction The emergence of Islamic banks and other Islamic financial institutions since the 1970s has stimulated a modern literature that has identified itself as addressing “Islamic Accounting”. What does the term “Islamic Accounting” mean in the rapidly growing contemporary literature? Napier (2009) has proposed three interrelated aspects: a historically-oriented sense, in which “Islamic Accounting” refers to ideas and practices in Muslim-majority countries in past periods; a practice-oriented sense, where the focus is on how entities describing themselves as “Islamic” account for and report their transactions and activities; and a principle-oriented sense, where fundamental accounting concepts and methods form a coherent body of ideas and practices based on the religion of Islam. The word “Islam” means total submission or surrender to the will of God (Allah), and a Muslim is one who so submits. However, this raises the question of how Muslims can determine what the will of God is. The principal sources are the Qur’an, which is considered by Muslims to be the exact words of revelation from...
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...11/14/2013 Holidays in China and Yemen AL-Dubai Omar Yaseen ZHEJIAN NORMAL UNIVERSITY Holidays in China and Yemen Submitted By AL-Dubai Omar Yaseen Abdulqader IMBA 2013219037 Zhejiang Normal University China, Zhejiang province, JinHua City Mobile: 18395969440, 669440 Email: yaxy@live.com Introduction: In my research I am going to compare between public holidays in China and public holidays in Yemen. Frist I am going to list the public holidays about China and later in my research I will list the holidays in Yemen Public holidays in China There are currently seven official public holidays in China. There was a major reform in 2008, abolishing the Labour Day Golden Week and adding three traditional Chinese holidays (Qingming Festival, Duanwu Festival, and Mid-Autumn Festival). A notable feature of mainland Chinese holidays is that weekends are usually swapped with the weekdays next to the actual holiday to create a long vacation period. January 1 New Year 元旦 Sun 1-Tue 3 January[ 1st day of 1st lunar month Chinese New Year 春节 Sun 22-Sat 28 January] 5th solar term (April 4 or April 5) Qingming Festival 清明节 Mon 2-Wed 4 April May 1 Labor Day 劳动节 Sun 29 April - Tue 1 May 5th day of 5th lunar month Dragon Boat Festival 端午节 Sat June 23 15th day of 8th lunar month Mid-Autumn Festival 中秋节 Sun September 30 October 1 National Day 国庆节 Mon 1–Wed 3 October Transferred holidays In all these holidays...
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...RISK MANAGEMENT IN ISLAMIC BANKING AND FINANCE: THE ARAB FINANCE HOUSE EXAMPLE Bilal A. Fleifel A Thesis Submitted to the University of North Carolina Wilmington in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration Cameron School of Business University of North Carolina Wilmington 2009 Approved By Advisory Committee Howard Rasheed Cetin Ciner William H. Sackley Chair Accepted By DN: cn=Robert D. Roer, o=UNCW, ou=Dean of the Graduate School & Research, email=roer@uncw. edu, c=US Date: 2010.01.21 15:02:51 -05'00' ________________________ Dean, Graduate School TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... ii ABSTRACT........................................................................................................................ vi ACKNOWLEDGMENTS .................................................................................................. vii DEDICATION .................................................................................................................. viii LIST OF TABLES .............................................................................................................. ix LIST OF FIGURES...............................................................................................................x GLOSSARY .............................
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...What is Sharia Banking? London is the leading Islamic banking center in the West, and the Netherlands is seeking to overtake London in this regard. Wall Street is becoming enamored with Islamic banking (also known as Sharia banking) and this banking model is rapidly gaining acceptance in the Western world. Unlike the traditional banking model most Westerners are familiar with, Islamic banks are managed according to Sharia law. The main difference between Western banking and Islamic banking is the Quran prohibits the collection of interest in all monetary transactions, charging fees (and donations) for services provided in lieu of charging interest on loaned capital. Islamic banks are also governed by a Sharia Advisory Board, which is comprised of Islamic scholars and clerics who are responsible to ensure all of the bank's activities are in strict compliance with Sharia (Islamic) law. Those in favor of Islamic banking believe the Islamic banking system is superior to the capitalistic model of the West, because it is structured around a "strict code of ethics" (based on the Quran) and is prohibited from "exploitative practices" (including the charging of interest). According to Islamic banking proponents, this allows banking to be an integral part of a moral society (governed by the Quran). In contrast, they believe capitalism is solely focused on money (profit) and this incites greed and the exploitation of others, which leads to the social problems in the West, including the division...
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...credit, and risk of the borrower and the rate of inflation. Different economists have given different definitions and interpretations of interest. For example are stated below: * According to Don Patinkin (1972), “Interest is one of the forms of income from property, the other forms being dividends, rent and profit.” * According to Samuelson (1976), “Interest is the price of rent for the use of money.” * According to Abu Saud (1983), “The excess of money paid by the borrower to the lender over and above the principal for the use of the lender’s liquid money over a certain period of time. Riba it is used in the Arabic language means to excess or increase. In Holy Qur’an says, “Allah decreases interest and increases sadaqah.”Islamic point of view, interest means effortless profit which is free of exchange. In today’s world interest is well-known to all of us and has become so institutionalized and accepted in modern economies that it is almost impossible to conceive that an economy can run without interest. Muslims are being forced with arguments in dealing with interest. Prohibition of interest in Islam Interest is prohibited in Islam as it appears explicitly in the Holy Qur’an and the Sunnah of the Prophet. The modern banking system is completely based on interest and the practices are in conflict with principle of Islam. Charging interest on loans is prohibited because it is not an equitable form of transaction. Prohibition of interest in Islam...
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...TR i-4 LEMBAGA PIAWAIAN PERAKAUNAN MALAYSIA MALAYSIAN ACCOUNTING STANDARDS BOARD Technical Release i-4 Shariah Compliant Sale Contracts © Malaysian Accounting Standards Board 2010 1 TR i-4 This Technical Release (TR) contains material in which the International Accounting Standards Committee Foundation (IASCF) holds copyright and which has been reproduced in this Statement with the permission of IASCF. Copyright in the International Financial Reporting Standards (including Interpretations), International Accounting Standards Board (IASB) Exposure Drafts, and other IASB publications belong to IASCF. All rights are reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior permission in writing to MASB or as may be expressly permitted by law or under terms agreed with the appropriate reprographics rights organisation. No part of the materials incorporated in this publication, the copyright of which is held by IASCF, may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior permission in writing to IASCF or as may be expressly permitted by law or under terms agreed with the appropriate reprographics rights organisation. TR i-4 Shariah Compliant Sale Contracts is issued by the MASB in respect of its application in Malaysia. 2 TR i-4 CONTENTS paragraphs INTRODUCTION IN1–IN6 MASB TECHNICAL RELEASE i-4 SHARIAH COMPLIANT...
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...century, majority of the population in Europe was living in poverty. Europe paled in comparison to the great empires of the Ming, Ottoman and Mughal. Though Portuguese and Spanish represented Europe civilization to set sail and explore new lands in search of new settlements and viable trade routes, the Chinese empire lead an expedition of a massive scale larger than ever known earlier than that time with a different motive. Such expeditions imply these major empires could be suitable candidates for world domination. However, they became insignificant in the world politics arena due to internal declines and isolation. Strong and impregnable as they seem, these great empires had their weaknesses and suffered downfalls due to inefficient government and inadequate resources. The Ottoman Empire has expanded beyond what its resources could sustain. Coupled with widespread corruption and incompetent leadership, the empire’s armies suffered and became vulnerable to its Christian and nomadic rivals. The Mughal empire leader Aurangzeb, expanded his empire in name of purifying Islam hence weakening alliances with Hindu princes and disrupted the already fragmented social order. With focused expansion of territory using obsolete armies and tactics, the empire was drained of its wealth and fell when civil unrest overtook the crown. The Ming Empire was somehow different. It was an empire with a well-developed industry and culture. The initial overseas expeditions were driven by curiosity. However...
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