Islamic Finance

Both President Zia ul-Haq of Pakistan and HRH Prince Mohammed al-Faisal have promoted Islamic finance. Pakistan was the first nation to switch to an Islamic banking system, while Prince Mohammed worked to develop its concepts. Islamic banking is advancing not only in the

Several commonly-accepted steps must occur before economic integration among nations can arise: the desire and will to integrate; a customs union to establish tariffs and seal the trading bloc; and free trade within the bloc, with all member states acting in unison. After World War II ended, the European Common Market was set up, with the Treaty of Rome incorporating several principles of a common market. Since the League of Arab States' Treaty in 1950, the Arab world has made efforts toward integration as well.

A criticism of Professors Tahirul Qadri book: Bila Sood Bankari – Ek Oboori Khaka. It outlines the four observations in which the book is based. The claim that they are intended to legalize all transactions without intending any real change is put forward. The authors arguments are carefully examined and criticized.

Though the annual success of Islamic banks has proven their viability, the future growth of Islamic financial institutions depends on the development of a worldwide network of modern and well-equipped financial institutions. Islamic banks must undertake longer-term financial investments and develop medium- and long-term financial instruments. Since a secondary financial market does not exist, a pan-Islamic financial regulatory body should be contemplated.

The movement in the West toward ethical investment closely matches the spirit of

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In the last 20 years, Muslim nations have made varying efforts to restructure their economies along Islamic lines. The economy of an Islamic state is similar to the economy of a capitalist welfare state.

While conventional banks are predominantly financial intermediaries that earn profits by obtaining capital from depositors at one interest rate and lending it to borrowers a higher interest rate, Islamic banking does not involve riba (interest).

Growing interest in Islamic banking is part of a broader Islamic Renaissance. Islamic banking approaches finance as an equitable risk-sharing agreement between the provider of capital and an entrepreneur. The elimination of riba is based on the economic values of justice, stability, and growth.