Articles

The Islamic Development Bank (IDB) was created to foster the socioeconomic development of Muslim communities.

The Islamic Development Bank (IDB) was born out of actions made at the first and second Conferences of Finance Ministers at Jeddah in 1973 and 1974, respectively. Even earlier, the Organization of the Islamic Conference, which now has 45 members, had fostered feelings of economic cooperation among

The Islamic Development Bank (IDB) is initiating a program to aid technical cooperation among member states. The technology of more-developed nations will be made available to aid the less-developed ones. This program is the initial step toward achieving a

Credit was an important part of medieval trade. Credit was vital to trade and business transactions in both Europe and the Muslim Near East.

The dispute over the legitimacy of interest has reemerged with the rejuvenation of Islamic scholarship. A zero interest rate can be attained by either imposing a zero price ceiling in the credit market or shaping monetary policy to achieve the goal through the market. Friedman's Rule implies that the second policy can achieve a zero interest rate without seriously distorting the market. Muslims debate whether the

A highly problematic world of economics could use a call toward Islamic economic strategies and visions. While material conditions are not the sole determinants of human flourishing, contemporary secularism seems to feel that they are. Free-market economics has faulty thinking and creates frustrations. An adequate strategy is lacking under the present economic order. Islamic economics carries the best of the free-market approach without its problems. The key to achieving the best of both worlds is the presence of spirituality alongside savvy economic knowledge.

A broad equilibrium model may be used to look at investment and external balance in an Islamic economic framework. Monetary policy can influence output in an open Islamic economy. The central bank monitors the supply of reserves and holds or sells its bank equity shares. A rise in the supply of bank reserves decreases deposit rates. If currency and foreign wealth are held in place of domestic bank deposits, monetary expansion will still not be totally thwarted because the currency and foreign holdings do not serve as perfect substitutes for domestic bank deposits.

Although Islamic banking has operated for decades, its operations and methods remain enigmatic to Muslims and non-Muslims alike. Islamic banks manage to serve as financial intermediaries while adhering to the permissible and avoiding the forbidden, particularly riba (interest).

Entrepreneurs wishing to procure funds from an Islamic bank should remember three tips: knowledge of oneself, knowledge of the proposed venture and its goals, and knowledge of the means desired for achieving said goals. It should not be assumed that Islamic banks are charity groups -- they are businesses and they should be approached as such. Since an Islamic bank faces more risk in financing a project than a conventional bank does, audited financial statements from the applicant's firm are a must. Feasibility studies have a role in the application process.

Muslim countries are becoming more and more conscious of the need to comply with Islamic law by eliminating interest from their economies. Both jurists and economists are thinking about Islamization.