With global assets expected to reach over a trillion dollars in the next few years, Islamic finance is the fastest-growing segment of the international financial services industry. This introductory guide takes readers on an in-depth tour of this exciting new world of opportunity, with profiles of the many diverse players and projections of Islam's hottest growth markets.
This introductory guide takes readers on an in-depth tour of this exciting new world of opportunity, with profiles of the many diverse players and projections of Islam's hottest growth markets.
Surveys Saudi financial systems, institutions, and policies. Includes an historical and international comparative background and a working knowledge of contemporary processes with insight into financial policy and problems. Offers useful background data on Islamic banking and financial principles in relation to the Saudi system.
Offers useful background data on Islamic banking and financial principles in relation to the Saudi system.
The main characteristics of an Islamic financial system are described relying on recent writings on the subject and on the actual practice of Islamic banking. A theoretical model of an Islamic economic system is developed by generalizing the standard IS-LM model in order to study the effects of monetary policy on the macro-economic variables of an Islamic economy. Whether the authorities attempt to influence monetary conditions through changing the money supply or use the flow of Mudarabah financing as an intermediate objective, there would be no fundamental change in the way monetary policy affects economic variables. An expansionary monetary policy would reduce rates of return and increase output.
The main characteristics of an Islamic financial system are described relying on recent writings on the subject and on the actual practice of Islamic banking.
Rigorous mathematical techniques are used to compare the Islamic financial system based on variable return scheme (VRS) with the traditional one based on fixed return scheme (FRS). It is shown, under certain assumptions which include risk aversion on the part of investors, that the Pareto optimal contract is the VRS. Also VRS spreads risks more evenly than FRS allowing more risk taking in the economy. The domination of the real world by FRS, i.e. debts contracts, is shown to be caused mainly by informational asymmetry and higher monitoring Costs in case of VRS. But these costs are not prohibitive. The more effective the methods of monitoring and the higher the level of honesty on the part of economic agents, the more superior the Islamic financial system would prove to be in practice.
Rigorous mathematical techniques are used to compare the Islamic financial system based on variable return scheme (VRS) with the traditional one based on fixed return scheme (FRS).
The firms that want to work with the Islamic financial industry would be constrained to observe the sustainability in their operations, along with the complying with the Shariah criteria and the financial ratios.viiiThe aim of this book is ...
In any field—whether scientific, business, or social—ethics plays a critical role in determining what is acceptable in a particular community and what is considered taboo. The source of these preconditions is often a complex interweaving of tradition and rational thought. Socio-Cybernetic Study of God and the World-System investigates morality in a socio-scientific worldview, examining the epistemology of existence in conjunction with Islamic monotheistic law to generate a world-system that governs action and reaction in the context of a variety of cognitive and social environments. Readers with backgrounds in finance and economics can utilize this book to construct a more thorough theoretical understanding of their societal and professional associations.
Readers with backgrounds in finance and economics can utilize this book to construct a more thorough theoretical understanding of their societal and professional associations.
