Islamic Finance - Revision history

Zhothaqquah at 04:20, 15 November 2025

2025-11-15T04:20:51Z

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	{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.		{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=4\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.

	==''Haram'' (prohibited) institutions==		==''Haram'' (prohibited) institutions==

Asmith at 03:07, 11 November 2025

2025-11-11T03:07:09Z

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	{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.		{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.

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Zhothaqquah: tagged as stub

2025-11-10T00:19:38Z

tagged as stub

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	{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.		{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.

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Zhothaqquah: Revised language and removed irrelevant material

2025-11-10T00:09:41Z

Revised language and removed irrelevant material

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	{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}~~Estimates about the world's total Muslim population range between 1.2~~ and 1.6 Billion. Most countries in the Islamic world are, on average, less developed than non-Muslim countries, with only a small percentage of all Muslims living in those which can be considered developed, the wealth of which countries depends to a large extent on oil (such as Saudi Arabia) and ~~other natural resources or have undergone a period of significant secularisation (such as Turkey). There may be~~ various ~~complex and historical factors involved~~, ~~arguably including those relating to religion~~.		{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Islamic scripture and jurisprudence address and prescribe various financial practices, outlined here.

	==''Haram'' (prohibited) institutions==		==''Haram'' (prohibited) institutions==

	===Illegal trades===		===Illegal trades===
	Alcohol, pork and gambling are agreed upon to be forbidden under [[Islamic law]] and Islamic financial institutions avoid investing in such activites. Similarly prohibited is the charging and collecting of interest.		Alcohol, pork and gambling are agreed upon to be forbidden under [[Islamic law\|Islamic law,]] and Islamic financial institutions avoid investing in such activites. Similarly prohibited is the charging and collecting of interest.

	===Interest-based practices===		===Interest-based practices===
	Of the economic practices prohibited by Islamic law, the prohibition on interest is the most consequential, since all banking, financing and investing in the ~~world´s~~ economy depends on interest.		Of the economic practices prohibited by Islamic law, the prohibition on interest is the most consequential, since all banking, financing, and investing in the world economy depends on interest.

	[[Islam]] traditionally prohibited interest, as [[Muhammad]] feared usury leading to debt-[[Qur'an, Hadith and Scholars:Slavery\|slavery]] and other undesired social problems. ~~However, modern~~ laws increasingly prohibit and secure against debt-slavery~~, and it would appear that interest has a net-positive effect on~~ the ~~global economy today, as it enables every sort~~ of ~~loan~~.		[[Islam]] traditionally prohibited interest, as [[Muhammad]] feared usury leading to debt [[Qur'an, Hadith and Scholars:Slavery\|slavery]] and other undesired social problems. Modern laws increasingly prohibit and secure against debt slavery while preserving the collecting of interest.

	Nevertheless interest remains forbidden in many Islamic countries ~~and many small or medium sized companies cannot find any investor to expand their business~~.		Nevertheless, interest remains forbidden in many Islamic countries.
	==''Halal'' alternative institutions==		==''Halal'' alternative institutions==
	~~There are, however,~~ Islamic banks ~~existing~~ in many Muslim (and Western) countries ~~from which financing is available~~. These ~~include~~ savings accounts which return a share of invested profits instead of interest.		Islamic banks exist in many Muslim (and Western) countries. These offer savings accounts which return a share of invested profits instead of interest.

	Alternatives to mortgages are offered in which the property is owned jointly with a bank, in what is called a ''musharaka'' (partnership) contract, gradually ~~repaying~~ the bank for its share of the property and ~~paying~~ fees in the meantime. Business loans can also take the form of ''musharaka'' contracts in which the bank does not charge interest but gets shares in the business to share in the profit (and risk of loss) resulting from the loan. However, many companies would prefer a western bank to fulfill their financial needs and stay independent from an investor with such requirements.		Alternatives to mortgages are offered, in which the property is owned jointly with a bank, in what is called a ''musharaka'' (partnership) contract. The applicant gradually repays the bank for its share of the property and pays fees in the meantime. Business loans can also take the form of ''musharaka'' contracts, in which the bank does not charge interest but gets shares in the business.

	~~==Production in Muslim-majority nations==~~
	~~Many Islamic economies depend on agriculture, raw materials or textile products, with little or no production or design of high value-added products.~~

	Malaysia is the only Muslim-majority country with a significant electronic industry. Most products produced in Malaysia derive from production facilities built by foreign manufacturers. Thus, capital and technology are imported from western or East Asian multinationals.

	There may be opportunity for economic growth and prosperity to improve in the long term with improved education, the growing Islamic finance industry, loosened restrictions on women and fast-growing, youthful populations.

	~~===Economic influence of non-Muslim minorities===~~
	In some countries with a Muslim majority, such as Indonesia and Malaysia, minorities enjoy a significant influence on the national economy. Many Islamic governments are suppressing such minorities to keep limited their influence upon their national economies.

	~~==Economically detrimental factors==~~

	~~===Education===~~
	World Statistics reveal that many Islamic countries face serious problems regarding education. Many Islamic countries suffer from considerably high rates for illiteracy. High population growth rates make public education unaffordable.

	Many young boys do not attend school but only "Qur'an-Schools" where they are forced to memorize the [[Qur'an]] without understanding anything of it. Many [[Qur'an, Hadith and Scholars:Women\|Muslim women]] are illiterate as a result of patriarchal education laws that prioritize the education of Men. The result is that women cannot pass-on any knowledge to their children, worsening the situation further.

	~~In some cases, Sharia-inspired laws do not allow even well educated women to work or inhibit their careers.~~

	~~===Gender segregation===~~

	~~Some Islamic societies fail to harness the economic power of the female half of their populations. Some common restrictions include:~~

	*Women cannot meet male teachers directly.

	*Women cannot move or travel anywhere alone.

	*Women must be [[Hijab\|veiled]].

	==References==		==References==

Lightyears at 13:36, 27 November 2023

2023-11-27T13:36:39Z

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	{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Estimates about the ~~worlds~~ total Muslim population range between 1.2 and 1.6 Billion. Most Islamic ~~countries~~ are, on average, less developed than non-Muslim countries~~. Less than 5%~~ of all Muslims ~~are~~ living in ~~Muslim countries~~ which can be considered developed~~. The~~ wealth of ~~all these rich, developed Islamic~~ countries depends ~~largely~~ on oil~~. Many Muslims living in developed countries live in Western non-Muslim countries. One-third of young Muslims in Kosovo~~ (~~the most recently established Muslim State~~) are already looking to emigrate in search of fortune elsewhere (i.e. The West), 73% of their young being unemployed.<ref>[http://www.ansamed.info/en/news/ME02.@AM40812.html Kosovo: young; 73% unemployed, one third prepared to emigrate]</ref>		{{QualityScore\|Lead=1\|Structure=1\|Content=2\|Language=1\|References=1}}Estimates about the world's total Muslim population range between 1.2 and 1.6 Billion. Most countries in the Islamic world are, on average, less developed than non-Muslim countries, with only a small percentage of all Muslims living in those which can be considered developed, the wealth of which countries depends to a large extent on oil (such as Saudi Arabia) and other natural resources or have undergone a period of significant secularisation (such as Turkey). There may be various complex and historical factors involved, arguably including those relating to religion.

	~~==Production in Muslim-majority nations==~~
	~~Many Islamic economies depend on agriculture, raw materials~~ or ~~textile products, with little or no production~~ of ~~sophisticated products. Sophisticated products are also rarely designed in Muslim nations~~

	~~Malaysia is the only Muslim-majority country with a~~ significant electronic industry. Most products produced in Malaysia derive from production facilities built by foreign manufacturers. Thus, capital and technology are imported from western or East Asian multinationals.

	~~===Economic influence of non-Muslim minorities===~~
	~~In some countries with a Muslim majority,~~ such as ~~Indonesia~~ and ~~Malaysia~~, ~~minorities enjoy a significant influence on the national economy. Many Islamic governments are suppressing such minorities~~ to ~~keep limited their influence upon their national economies~~.

	==''Haram'' (prohibited) institutions==		==''Haram'' (prohibited) institutions==

	===Illegal trades===		===Illegal trades===
	Alcohol, pork and gambling are agreed upon to be forbidden under [[Islamic law]]. Similarly prohibited is the charging and collecting of interest.		Alcohol, pork and gambling are agreed upon to be forbidden under [[Islamic law]] and Islamic financial institutions avoid investing in such activites. Similarly prohibited is the charging and collecting of interest.

	===Interest-based practices===		===Interest-based practices===
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	Nevertheless interest remains forbidden in many Islamic countries and many small or medium sized companies cannot find any investor to expand their business.		Nevertheless interest remains forbidden in many Islamic countries and many small or medium sized companies cannot find any investor to expand their business.
			==''Halal'' alternative institutions==
			There are, however, Islamic banks existing in many Muslim (and Western) countries from which financing is available. These include savings accounts which return a share of invested profits instead of interest.

			Alternatives to mortgages are offered in which the property is owned jointly with a bank, in what is called a ''musharaka'' (partnership) contract, gradually repaying the bank for its share of the property and paying fees in the meantime. Business loans can also take the form of ''musharaka'' contracts in which the bank does not charge interest but gets shares in the business to share in the profit (and risk of loss) resulting from the loan. However, many companies would prefer a western bank to fulfill their financial needs and stay independent from an investor with such requirements.

			==Production in Muslim-majority nations==
			Many Islamic economies depend on agriculture, raw materials or textile products, with little or no production or design of high value-added products.

			Malaysia is the only Muslim-majority country with a significant electronic industry. Most products produced in Malaysia derive from production facilities built by foreign manufacturers. Thus, capital and technology are imported from western or East Asian multinationals.

			There may be opportunity for economic growth and prosperity to improve in the long term with improved education, the growing Islamic finance industry, loosened restrictions on women and fast-growing, youthful populations.

	===~~''Halal'' alternative institutions~~===		===Economic influence of non-Muslim minorities===
	~~There are also Islamic banks existing in many~~ Muslim ~~countries~~, ~~however~~, ~~many companies would prefer~~ a ~~western bank~~ to ~~fulfill~~ their ~~financial needs and stay independent from an investor who buys company shares - which is the alternative to interest commonly used in Islamic~~ economies ~~to secure investment/loans~~.		In some countries with a Muslim majority, such as Indonesia and Malaysia, minorities enjoy a significant influence on the national economy. Many Islamic governments are suppressing such minorities to keep limited their influence upon their national economies.

	==Economically detrimental ~~realities~~==		==Economically detrimental factors==

	===Education===		===Education===
	World Statistics reveal that many Islamic countries face serious problems regarding education. Many Islamic countries suffer from considerably high rates for illiteracy~~, with little hope that the picture might change~~. High population growth rates make public education unaffordable.		World Statistics reveal that many Islamic countries face serious problems regarding education. Many Islamic countries suffer from considerably high rates for illiteracy. High population growth rates make public education unaffordable.

	Many young boys do not attend school but only "Qur'an-Schools" where they are forced to memorize the [[Qur'an]] without understanding anything of it. Many [[Qur'an, Hadith and Scholars:Women\|Muslim women]] are illiterate as a result of patriarchal education laws that prioritize the education of Men. The result is that women cannot pass-on any knowledge to their children, worsening the situation further.		Many young boys do not attend school but only "Qur'an-Schools" where they are forced to memorize the [[Qur'an]] without understanding anything of it. Many [[Qur'an, Hadith and Scholars:Women\|Muslim women]] are illiterate as a result of patriarchal education laws that prioritize the education of Men. The result is that women cannot pass-on any knowledge to their children, worsening the situation further.

	In ~~other~~ cases, Sharia-inspired laws do not allow even well educated women to work~~. In Saudi Arabia many women attend university, but never find a job because they are not considered desirable as workers~~.		In some cases, Sharia-inspired laws do not allow even well educated women to work or inhibit their careers.

	===Gender segregation===		===Gender segregation===

	Islamic societies ~~(for example, in Saudi Arabia, with only slight changes taking place recently) often~~ fail to harness the economic power of the female half of their populations. Some common restrictions include:		Some Islamic societies fail to harness the economic power of the female half of their populations. Some common restrictions include:

	*Women cannot meet male teachers directly.		*Women cannot meet male teachers directly.
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	*Women must be [[Hijab\|veiled]].		*Women must be [[Hijab\|veiled]].

	~~===Discrimination against non-Muslims===~~

	~~There are many difficulties for [[non-Muslims]] in Muslim-Societies, including the [[Jizyah]] “poll tax” for dhimmi's:~~

	{{Quote\|{{Quran\|9\|29}}\|Fight those who believe not in Allah nor the Last Day, nor hold forbidden that which hath been forbidden by Allah and His Messenger, nor acknowledge the religion of Truth, (even if they are) of the People of the Book, until they pay the Jizyah with willing submission, and feel themselves subdued.}}

	In Malaysia, the Chinese minority effectively controls the economy, but Chinese students have to attain higher qualifications on average compared to local people to acquire the same jobs and scholarships.

	~~In addition to endemic instability, the discriminatory environment in many Muslim-Societies is not inviting for foreign investors.~~

	~~==Individual nations==~~

	~~===Iran===~~
	The struggling economy of Iran does not have enough refined petroleum and regular results in protests. The economy is controlled by religious foundations, and small and medium sized companies wield little influence. The private sector underdeveloped, and key industries under control of the Islamic government. Businesses not related to the oil industry experience little if any success in this environment.

	Due to dilapidated drilling rigs and pipelines, Iran can only produce 4.3 million barrels of oil/day out the 130 billion barrels of proven oil reserves.<ref>[http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/06/28/wiran228.xml Khamenei plays for high stakes], ''The Guardian'', 28/06/2007</ref> Iran is also only able to refine only 40% of its oil consumption; it has to export crude oil and import refined oil for the other 60% of consumed oil.

	Iran also struggles with High unemployment rates—15% according to the Iranian government <ref>https://www.cia.gov/library/publications/the-world-factbook/geos/ir.html#Econ</ref>. Since the population is very young, the unemployment rate is expected to rise in the future. Many young Iranians want to emigrate<ref>[http://www.reuters.com/article/worldNews/idUSDAH23888120070323?pageNumber=2 Young Iranians dream of better life in the West], ''Reuters'', 23 March 2007</ref>.

	==References==		==References==
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	*''Iran's Economic Morass: Mismanagement and Decline Under the Islamic Republic'', ISBN 978-0944029671		*''Iran's Economic Morass: Mismanagement and Decline Under the Islamic Republic'', ISBN 978-0944029671

	~~==External links==~~

	*''[http://cob.jmu.edu/rosserjb/Islam.and.Mammon.Kuran.bk.rev..doc Islam and Mammon: The Economic Predicaments of Islamism]''

	[[Category:Shariah (Islamic Law)]]		[[Category:Shariah (Islamic Law)]]
	[[Category:Islamic finance]]		[[Category:Islamic finance]]
	[[Category:Society and human nature]]		[[Category:Society and human nature]]

IbnPinker at 23:00, 23 February 2021

2021-02-23T23:00:30Z

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IbnPinker at 19:11, 23 February 2021

2021-02-23T19:11:15Z

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	[[Category:Shariah (Islamic Law)]]		[[Category:Shariah (Islamic Law)]]
	~~[[Category:Politics and Government]]~~
	[[Category:Islamic finance]]		[[Category:Islamic finance]]

Asmith: /* External links */

2021-02-22T00:32:53Z

External links

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Asmith at 00:20, 22 February 2021

2021-02-22T00:20:46Z

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	~~[[Category:Islamic Law]]~~

Asmith at 00:14, 22 February 2021

2021-02-22T00:14:44Z

← Older revision		Revision as of 00:14, 22 February 2021
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	*''[http://cob.jmu.edu/rosserjb/Islam.and.Mammon.Kuran.bk.rev..doc Islam and Mammon: The Economic Predicaments of Islamism]''		*''[http://cob.jmu.edu/rosserjb/Islam.and.Mammon.Kuran.bk.rev..doc Islam and Mammon: The Economic Predicaments of Islamism]''

			[[Category:Shariah (Islamic Law)]]
	[[Category:Politics and Government]]		[[Category:Politics and Government]]
	[[Category:Islamic economics]]		[[Category:Islamic economics]]
	[[Category:Islamic Law]]		[[Category:Islamic Law]]