An International Financial Services Board has been set up comprising of Pakistan, Malaysia, Indonesia, Bahrain, Saudi Arabia, Sudan, Iran and Kuwait as founding members of the board. The board has been set up to set standards for an Islamic financial system. It is entrusted with setting standards for Islamic institutions and ensuring they conform to principles of shari`a laws.
Much time and money has been spent on devloping the Islamic finance system and making it compatible with the needs of the modern world. The staff who are responsible for carrying out Islamic banking operations have been educated in the ways of Islamic finance. What is lacking, however, is the understanding of the general public and their inclination to participate in it once it is firmly established. Islamic banks need to do a better job reaching out to their customers and showing them how Islamic savings and insurance systems can be beneficial for them.
At this time very few financial institutions have addressed housing finance using Islamic methods. There are a number of problems facing the housing sector including, but not limited to: availability of huge funds, situations of governments of most
The stock exchange is becoming an increasingly more central institution in the Pakistani economy. The cabinet has approved some changes to securities laws. As a result, prices of participation-term certificates and mudaraba shares will increasingly be quoted on the stock exchange floor.
In Islamic law, a mudaraba is a business setup in which one party (the sahib-e-maal) supplies capital for a venture while another party (the mudarib) contribu
An owned good can be sold if it is indestructible and in accordance with a mutually acceptable contract. Speculation on stocks should be curtailed through a higher short-term capital gains tax or through a transfer fee. The Ulama should look into the practice of 'short sale.'
Stock exchanges are an essential part of contemporary economies. They are effective methods of obtaining saving and investing. Since the Qur'an prohibits gambling, distinguishing between gambling and taking stock-market risks is a must.
Within the world's less developed countries (LDCs), indigenous social sciences need to address culture-specific issues. Western thought neglects or misunderstands the crucial role of culture. In the Islamic world, techniques of social analysis derived from outside sources are not completely beneficial, because those techniques might be specific to a culture other than