The Gulf Cooperation Council was established in May 1981 by the heads of state of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. While Western observers considered security to be main objective of the members, security is not mentioned in the Council's foundation charter. The council intends to promote close coordination in the economic and social spheres between the member states.
The first section of this thesis outlines the opposition to the use of interest within Western philosophical, religious and economic thought. The thesis begins with a description of loan institutions and traces the opposition to interest chronologically through ancient civilizations, Judaic teachings, early Christianity, and Medieval scholarship, continuing with Post-Reformation developments and the socialist critiques on the use of interest.
Islamic law governs all social and economic activities, and has long been hostile to modern and more western economic systems. There are instances where the shari`a provides mixed and somewhat contradictory rules regarding prohibited economic activity, such as that of gharar.
This thesis investigates the causes behind the international expansion of many Arab Gulf banks, and the importance of oil revenues during the 1970s in their development and international expansion. The study also examines how financial markets in the region (i.e. Kuwait and Bahrain) encouraged the regional and international expansion of Arab banks.
The establishment of Islamic financial institutions and other productive enterprises is a major step in the movement to create institutions based in Islamic law. This study outlines how the Islamic system functions, how it compares to other economic models, what effects the Islamic system might have for the financial policies of the enterprise and the prospects for its growth. This thesis provides a field study following the case study approach, focusing on Egypt.
This thesis examines teachings on and definitions of usury found within the Holy Scriptures of Judaism, Christianity, and
Long term shareholders and short term investment depositors account for the most significant financial contributions to Islamic banks. The shareholders and depositors seek positive returns from borrowers' potential gains, particularly due to the prohibition of riba in Islamic financial systems.