CURRENT FINANCIAL CRISIS AND ISLAMIC ECONOMICS
Courtsey of Well Known Islamic Economist Dr. Mohammed Nejathullah Siddiqui
[31 October 2008]
The current crisis emanating from US financial markets and spreading to other developed and fast developing countries like China, India and Brazil, is threatening a global meltdown leaving the entire world poorer and full of forebodings regarding future .
Sunday, November 30, 2008
Friday, November 28, 2008
Iqtisad Al Islamy - Introduction to Islamic Economics
Courtsey of Islamic-World.Net
Islam uniquely considers distribution as the economic problem, and Muslims do not share the obsession of capitalists and communists with production. Because Islam differentiates between the basic needs and luxuries, there exists no concept of relative scarcity of resources in Islam.
Islam uniquely considers distribution as the economic problem, and Muslims do not share the obsession of capitalists and communists with production. Because Islam differentiates between the basic needs and luxuries, there exists no concept of relative scarcity of resources in Islam.
Tuesday, October 21, 2008
Islamic banking escapes fallout of global financial crunch
Islamic banking escapes fallout of global financial crunch
Source: AFP
Islamic banking has largely escaped the fallout from the global financial crisis, thanks to rules that forbid the sort of risky business that is felling mainstream institutions.
Source: AFP
Islamic banking has largely escaped the fallout from the global financial crisis, thanks to rules that forbid the sort of risky business that is felling mainstream institutions.
Friday, September 19, 2008
An Ode To a Friend
Assalamu ‘Alaikum,
An Ode To A Friend
Every so often comes a man who many fail to judge the strength of his conviction. He’s no perfection, he’s full of weaknesses and sometimes display incomplete knowledge on matters of Islam but the honest amongst us will see a glittering beacon of fearlessness in his pursuit of justice and fairness.
An Ode To A Friend
Every so often comes a man who many fail to judge the strength of his conviction. He’s no perfection, he’s full of weaknesses and sometimes display incomplete knowledge on matters of Islam but the honest amongst us will see a glittering beacon of fearlessness in his pursuit of justice and fairness.
Tuesday, September 9, 2008
Hadiths to Live By
Assalamu 'Alaikum
Hadiths to Live By
Translated From Sahih Bukhari by IslamicCity.com
Narrated Hudhaifa:
Allah's Apostle narrated to us two narrations, one of which I have seen (happening) and I am waiting for the other. He narrated that honesty was preserved in the roots of the hearts of men (in the beginning) and then they learnt it (honesty) from the Qur'an, and then they learnt it from the (Prophet's) Sunna (tradition). He also told us about its disappearance, saying, "A man will go to sleep whereupon honesty will be taken away from his heart, and only its trace will remain, resembling the traces of fire. He then will sleep whereupon the remainder of the honesty will also be taken away (from his heart) and its trace will resemble a blister which is raised over the surface of skin, when an ember touches one's foot; and in fact, this blister does not contain anything. So there will come a day when people will deal in business with each other but there will hardly be any trustworthy persons among them. Then it will be said that in such-and-such a tribe there is such-and-such person who is honest, and a man will be admired for his intelligence, good manners and strength, though indeed he will not have belief equal to a mustard seed in his heart." The narrator added: There came upon me a time when I did not mind dealing with anyone of you, for if he was a Muslim, his religion would prevent him from cheating; and if he was a Christian, his Muslim ruler would prevent him from cheating; but today I cannot deal except with so-and-so and so-and-so. (See Hadith No. 208, Vol. 9)
Hadiths to Live By
Translated From Sahih Bukhari by IslamicCity.com
Narrated Hudhaifa:
Allah's Apostle narrated to us two narrations, one of which I have seen (happening) and I am waiting for the other. He narrated that honesty was preserved in the roots of the hearts of men (in the beginning) and then they learnt it (honesty) from the Qur'an, and then they learnt it from the (Prophet's) Sunna (tradition). He also told us about its disappearance, saying, "A man will go to sleep whereupon honesty will be taken away from his heart, and only its trace will remain, resembling the traces of fire. He then will sleep whereupon the remainder of the honesty will also be taken away (from his heart) and its trace will resemble a blister which is raised over the surface of skin, when an ember touches one's foot; and in fact, this blister does not contain anything. So there will come a day when people will deal in business with each other but there will hardly be any trustworthy persons among them. Then it will be said that in such-and-such a tribe there is such-and-such person who is honest, and a man will be admired for his intelligence, good manners and strength, though indeed he will not have belief equal to a mustard seed in his heart." The narrator added: There came upon me a time when I did not mind dealing with anyone of you, for if he was a Muslim, his religion would prevent him from cheating; and if he was a Christian, his Muslim ruler would prevent him from cheating; but today I cannot deal except with so-and-so and so-and-so. (See Hadith No. 208, Vol. 9)
Wednesday, August 27, 2008
Mudharabah
Assalamu 'Alaikum
Mudharabah
The icon of pure Islamic banking and the most maligned concept. Fourteen centuries ago a very special young man entered into a business relationship with a widowed noble lady of Makkah. She provides the capital; he buys goods and brings them for trade in Sham (Syria). Profits from the venture are shared based on a ratio as preagreed between them; any and all business losses are borned by the noble lady. The young man, Prophet Muhammad s.a.w, an icon of trustworthiness, captured the heart of the noble lady, Siti Khadijah r.a. She became his wife, and the rest, as they say is history.
Mudharabah
The icon of pure Islamic banking and the most maligned concept. Fourteen centuries ago a very special young man entered into a business relationship with a widowed noble lady of Makkah. She provides the capital; he buys goods and brings them for trade in Sham (Syria). Profits from the venture are shared based on a ratio as preagreed between them; any and all business losses are borned by the noble lady. The young man, Prophet Muhammad s.a.w, an icon of trustworthiness, captured the heart of the noble lady, Siti Khadijah r.a. She became his wife, and the rest, as they say is history.
Saturday, August 2, 2008
Hounding Hudud : the abysmal failure of Muslims to do dakwah
Assalamu 'Alaikum
Hounding Hudud : The abysmal failure of Muslims to do dakwah
Let’s not even begin to discuss the merits or demerits of Hudud. That’s not where we should begin any discussion on Hudud. We need to explore and identify, the world view of the debaters before we begin the debate. If one is well learned, enlightened and knowledgeable on the subject and the other is well, none of the above, we should first focus on bringing that party’s world view up to scratch before commencing the debate. If we are debating the subject of physics we can see the folly of a university professor debating the subject with a sixth former.
Hounding Hudud : The abysmal failure of Muslims to do dakwah
Let’s not even begin to discuss the merits or demerits of Hudud. That’s not where we should begin any discussion on Hudud. We need to explore and identify, the world view of the debaters before we begin the debate. If one is well learned, enlightened and knowledgeable on the subject and the other is well, none of the above, we should first focus on bringing that party’s world view up to scratch before commencing the debate. If we are debating the subject of physics we can see the folly of a university professor debating the subject with a sixth former.
Wednesday, July 30, 2008
Murabahah
Assalamu ‘Alaikum
Murabahah
This is another type of sale, also known as cost plus sale. You buy something then you sell it to some else at cost to you plus a profit margin. It is a rule of Murabahah that you must tell the buyer your cost and profit margin. That’s Islamic transparency for you.
Murabahah
This is another type of sale, also known as cost plus sale. You buy something then you sell it to some else at cost to you plus a profit margin. It is a rule of Murabahah that you must tell the buyer your cost and profit margin. That’s Islamic transparency for you.
Sunday, July 20, 2008
Of Islamic Financing and Abandoned Housing
Assalamu ‘Alaikum,
Of Islamic Financing and Abandoned Housing
You took your little daughter and young wife to the housing site. Nothing there but cranes and a big hole in the ground. But you get all excited; this is the place you’d imagine would be the start of your life as a family, building up happy memories amid much love and fondness. That was 3 years ago. You are now back at the scene. It is still a big hole in the ground, but the cranes and construction workers have long gone.
Of Islamic Financing and Abandoned Housing
You took your little daughter and young wife to the housing site. Nothing there but cranes and a big hole in the ground. But you get all excited; this is the place you’d imagine would be the start of your life as a family, building up happy memories amid much love and fondness. That was 3 years ago. You are now back at the scene. It is still a big hole in the ground, but the cranes and construction workers have long gone.
Thursday, July 17, 2008
It is a Sale (Commentary on Bai' Bithaman Ajil Part II)
Assalamu ‘Alaikum,
It’s a Sale ( Commentary on Bai’ Bithaman Ajil Part II)
One really has to grasp the principle or we can get confused and mixed up with a conventional term loan. A conventional loan is a loan of money, the lender is not really concerned what you do with the money, just pay the regular interest or agreed repayments and they are happy. They also do not wish to know what difficulties you are facing, just pay as agreed and let’s get on with our lives, that seems to be the attitude.
It’s a Sale ( Commentary on Bai’ Bithaman Ajil Part II)
One really has to grasp the principle or we can get confused and mixed up with a conventional term loan. A conventional loan is a loan of money, the lender is not really concerned what you do with the money, just pay the regular interest or agreed repayments and they are happy. They also do not wish to know what difficulties you are facing, just pay as agreed and let’s get on with our lives, that seems to be the attitude.
Wednesday, July 16, 2008
Our hearts go out to Anwar Ibrahim
Our hearts go out to Anwar Ibrahim. May Allah take care of you my brother. Hasbunallahu wa ni'mal wakil.
Sunday, July 13, 2008
Commentary on Bai' Bithaman Ajil
Assalamu ‘Alaikum
Commentary on Bai' Bithaman Ajil
A sale where the payment of the price is deferred. This is the most familiar concept of Islamic Financing so much so it has almost become the de facto definition of Islamic banking in Malaysia. Which is a shame because Islamic Financing is so rich in concepts other than Al Bai' Bithaman Ajil.
Commentary on Bai' Bithaman Ajil
A sale where the payment of the price is deferred. This is the most familiar concept of Islamic Financing so much so it has almost become the de facto definition of Islamic banking in Malaysia. Which is a shame because Islamic Financing is so rich in concepts other than Al Bai' Bithaman Ajil.
Saturday, July 12, 2008
Getting familiar with Islamic Financing
Getting Familiar with Islamic Financing
Approved Syariah Concepts for Islamic Economic Transactiions
Primary principles
Deferred-Payment Sale [ Bai’ Bithaman Ajil (BBA)]
A contract that refers to the sale and purchase transaction for the financing of an asset on a deferred and an instalment basis with a pre-agreed payment period. The sale of price will include a profit margin.
Approved Syariah Concepts for Islamic Economic Transactiions
Primary principles
Deferred-Payment Sale [ Bai’ Bithaman Ajil (BBA)]
A contract that refers to the sale and purchase transaction for the financing of an asset on a deferred and an instalment basis with a pre-agreed payment period. The sale of price will include a profit margin.
Friday, June 6, 2008
The Politics of Being Abroad
[classof72] The Politics of Being Abroad
From:zahid aziz (zaziz@hotmail.com)
Sent:Tuesday, May 20, 2008 11:33:19 AM
Reply-to:classof72@yahoogroups.com
To: classof72@yahoogroups.com; melayu_riyadh@yahoogroups.com
Assalamu 'Alaikum,
Nothing ever happens when you’re living in Malaysia but the minute you decide to leave and live abroad all manner of fun takes place. Its like when you were kids straining your eyes at the night sky hoping to glimpse at a shooting star you’ve read so much about but you never see it do you. But the minute you take your eyes of it the heavens blow up like a fire at a fireworks factory.
From:zahid aziz (zaziz@hotmail.com)
Sent:Tuesday, May 20, 2008 11:33:19 AM
Reply-to:classof72@yahoogroups.com
To: classof72@yahoogroups.com; melayu_riyadh@yahoogroups.com
Assalamu 'Alaikum,
Nothing ever happens when you’re living in Malaysia but the minute you decide to leave and live abroad all manner of fun takes place. Its like when you were kids straining your eyes at the night sky hoping to glimpse at a shooting star you’ve read so much about but you never see it do you. But the minute you take your eyes of it the heavens blow up like a fire at a fireworks factory.
A Breathe of Fresh Air
[classof72] A Breathe of Fresh Air
From:zahid aziz (zaziz@hotmail.com)
Sent:Wednesday, March 12, 2008 10:55:19 PM
Reply-to:classof72@yahoogroups.com
To: melayu_riyadh@yahoogroups.com; classof72@yahoogroups.com
Assalamu ‘alaikum,
To me it was a simple choice. As a Muslim nothing but nothing is separable from Islam. As Muslims we should live and breathe Islam, for what higher title do we hold than to be the Vice Regent of Allah on this Earth. So it’s a foregone conclusion I will support whichever party upholds the command of Islam.
From:zahid aziz (zaziz@hotmail.com)
Sent:Wednesday, March 12, 2008 10:55:19 PM
Reply-to:classof72@yahoogroups.com
To: melayu_riyadh@yahoogroups.com; classof72@yahoogroups.com
Assalamu ‘alaikum,
To me it was a simple choice. As a Muslim nothing but nothing is separable from Islam. As Muslims we should live and breathe Islam, for what higher title do we hold than to be the Vice Regent of Allah on this Earth. So it’s a foregone conclusion I will support whichever party upholds the command of Islam.
Sukuk in three jurisdictions, Malaysia, Gulf and Saudi Arabia
Sukuk in three jurisdictions, Malaysia, Gulf and Saudi Arabia
When Allah swt declared war on riba humans interpret it as ok to have it fifty fifty. In other words we say it’s ok to begin Islamic banking slowly, let it coexist with conventional banking so that the beauty of Islamic banking will shine through and eventually everyone will convert to it. That’s what we thought and assumed acceptable under Shariah. However a clear interpretation of Shariah does not support such a notion ; what is haram is haram and cannot be condone or allowed to exist in any form or manner.
When Allah swt declared war on riba humans interpret it as ok to have it fifty fifty. In other words we say it’s ok to begin Islamic banking slowly, let it coexist with conventional banking so that the beauty of Islamic banking will shine through and eventually everyone will convert to it. That’s what we thought and assumed acceptable under Shariah. However a clear interpretation of Shariah does not support such a notion ; what is haram is haram and cannot be condone or allowed to exist in any form or manner.
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