Category Archives: Commentary
While preparing my Masters thesis, I came a across an interesting quote from Muhammad b. Idris al-Shafi’i, the famous jurist and author of the first work of Islamic legal theory, al-Risalah. After explaining the need to consult others before issuing juristic opinion: [Consultation should be sought] regardless of whether those consulted agree or disagree; in […]
Muhammad Yunus having won the Nobel prize for economics, Microfinance has become a hot item for many seeking to make money and “lend” a helping hand. Much criticism has surrounded Microfinance, from Muslims and Non-Muslims alike, questioning the ethics and viability of the practice. Objections generally center on the fact that it is an interest […]
Insecure Securities, by Hans-Werner Sinn, Commentary, Project Syndicate by way of Economist’s View Quite interesting, especially the bit about Pfandbrief at the end.
Classically, scholars categorized contracts as being from one of three types. Commutative exchange (Mu’awaDat معاوضات) – Involving the voluntary exchange of good, services, and/or both for the purpose of trade. Includes: cash sales, bartering, and currency exchange. Charitable exchange (Tabaru’at تبرعات) – Involving the voluntary not-for-profit exchange of good, services, and/or both out of the […]
Current accounts in most Islamic banks have been conceptualized as loans, ergo it is impermissible – in the view of most modern jurists- to pay or charge an interest rate on the account. While most conventional banks do not provide any sort of interest payment unless a initial minimum deposit is made, most still provide […]