Foreign attorneys operating in Saudi Arabia should be aware of four contrasts between Western and Islamic law. First, Islamic law has a deep religious basis and motivation, while Western law was made by men for men. Second, Islamic law has four sources (
The author looks at Islamic economics as a system that stands as a possible solution to the economic challenges and difficulties of modernity. Neoclassical economics, it is argued, is flawed in some of its central postulates. These flaws lead to social ills. Islamic economics, alternatively, is more direct in how it deals with certain problems such as unemployment. Parameters set on the economy by the shari`a are discussed.
The author develops the idea of the ethical numeraire and relates it to Islamic economics. When ethical motivation drives production, consumption, and distribution in an economy, a certain equilibrium is reached that is locally stable (though not globally stable). In Islamic thought, the ethical numeraire is a concept that is linked to value in the economy.
Looking at the example of Malaysia, the authors explore the financing of small and medium-sized enterprises (SME) in developing countries. Recently, there has been a growing potential niche for SMEs in Malaysia due to changes in behavior in the manufacturing sector. A possible role for Islamic banks and venture capitalism is foreseen by the authors in providing funds for SME's. An idea put forth is that management training and education are in need of enhancement.
Seeking to avoid riba (interest) in financing, individuals in the Islamic world are looking at equity finance as a possible substitute for debt financing. However, equity markets are not as strong as desired in developing
One can come to a broader understanding of Islamic finance by applying Islamic principles and methods to the international economic system. The cornerstones of Islamic finance include profitability and risk-diversification.
The article is concerned with social choice and decision-making in Islamic social theory. The author touches on the ideas of Shura and Ijtehad in making decisions in an Islamic society. Drawing on modern sociological terms like knowledge-function, the author deals with how policy decisions maintain the economic and social welfare of a people.
Governments throughout the Muslim world, with the intention of uniting Muslims economically and to increase their cooperation on other issues, have created institutions like the Jeddah-based Islamic Development Bank.
Malaysian Islamic banking has been completely backed by the government of Mahathir Mohammed. Islamic banking is practiced there as a matter of course rather than as a politically uncertain measure. The system designed by the Malaysians is an example worthy of emulation by other countries in the Islamic world.