The main objective of Islamic banks is to obey Allah's directives in financial dealings. Islamic banks are directed by sound management and well-defined policies.
Economics is not a value-free science. The Islamic economic system, unlike other prevalent systems, is based on divinely revealed principles that have been shown to work in the history of
When Muslim countries regained sovereignty and freedom to establish their economies, they were brought to a world divided by socialism and capitalism.
One belief in
Islamic societies are charged with enforcing the commandments of Allah as seen in al-
In describing the institutions of an Islamic economy, the author takes a broad look at the values promoted by al-
Muhammad al-Faisal al-Saud and Saleh Abdullah Kamel, two of the leaders of the Islamic finance movement, are both of the opinion that the West is starting now to comprehend the practices of Islamic finance. Kamel has established since 1973 15 Islamic banks in 15
The M.A. Khan paper being commented on addresses the history of accounting standards in its first portion and in its second portion deals with potential schemes to 'overcome the limitation of ''generally accepted principles of accounting''' in equity finance practices by persons or by corporations. Auditing came into being after the adoption of misleading book keeping by companies. The question of pure dishonesty in accounting representation is not completely dealt with in M.A. Khan's paper.
Having seen Saudi Arabia as an economy enjoying much growth and one set in a fairly calm social and political framework, it must be understood that the Islamic growth model is not an inadequate one. It might even be said that this outlook on development has promoted growth and has led to greater flourishing. Islamic thinkers hold that the Islamic economic system is more consistent than the capitalist and socialist approaches. In the Saudi kingdom, the rulers have been sensible to set up institutions that enhance the lives of the people.