Islam

Islamic Finance

Islam teach us to use sharia law rather than liberalism or capitalism. There are four characteristic of sharia :

  • unity
  • equilibrium
  • free will
  • responsibility

One of the differentiation between capitalism & sharia is “interest”. There is no interest (riba in muslim term) in sharia. We get our money from the profit sharing and it’s very transparant.

You can read article article about sharia on Islamic Financial Website.

Eventough gain that you get from Sharia less than conventional economic, I think it’s more secure if you put your money on sharia institution. Below is an article about Islamic Financial regarding US economic crisis today.

http://www.financeweek.co.uk/cgi-bin/item.cgi?id=5931


“Islamic banking: At a time when many US banks are having trouble collecting their interest, the economics of banks that don’t charge it are being assessed in a better light. Islamic banking assets were calculated at $750bn (£370bn) worldwide in 2006, and are estimated to have grown another 10-15% last year. McKinsey forecasts they will reach $1,000bn by 2010. Malaysia and other Islamic financial centres say their banks have avoided suffering serious fallout from the American sub-prime borrowing crisis, or creating their own, largely because sharia constrains them to secure loans against real assets and avoid excessive leverage”

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