International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Islamic finance current, future trends and challengesHosam alden
The purpose of this paper is to clarify, the current Islamic Finance development, principles, norms,
instruments, and growth period around the world. The second is the future Islamic finance opportunities.
The third is Challenges for Islamic Finance. The paper concluded to that, There are many of the motives that
led to the development of Islamic finance and growth, and there are many problems faced this system.
Despite the development achieved by the Islamic financial but, there are many challenges that face it.
Including the differences between theory and practice as well as variety of views held by practitioners and
financial experts pose big challenges
The Global Islamic Economy Summit 2013 is organized by Dubai Chamber of Commerce & Industry and Thomson Reuters, held on 25th-26th November, 2013 at Madinat Jumeirah, Dubai, UAE under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum,
Vice President and Prime Minister of the UAE and Ruler of Dubai.
SURVEY RESEARCH- Advance Research MethodologyRehan Ehsan
This Presentation states the details of Survey Research for students to get help in advance research methodology. Rearchers may also get help from this work.
Types of variables-Advance Research MethodologyRehan Ehsan
This Presentation states the details of types of variables for students to get help in advance research methodology. Rearchers may also get help from this work.
Role of board of directors -Corporate GovernanceRehan Ehsan
This Presentation states the role of board of directors in respect of corporate governance of Pakistan. Reviewing this clear the concept of their legal role in Pakistan.
Questionnairre desisgn-Advance Research MethodologyRehan Ehsan
This Presentation states the details of Questionnairre desisgn for students to get help in advance research methodology. Rearchers may also get help from this work.
Types of Hypothesis-Advance Research MethodologyRehan Ehsan
This Presentation states the details of Hypothesis for students to get help in advance research methodology. Rearchers may also get help from this work.
Petrodollar tracking the flow of investments of oil windfalls today vs. 1970Rehan Ehsan
This thesis helps reader to track petrodollar flow of investment of Oil windfalls today as in 1970s. One should be able to understand best of petrodollar tracking flow after review of this writeup.
Bechmarking- Total Quality Management (TQM)Rehan Ehsan
This presentation covers basics of Benchmarking in the eye of Total Quality Management and customer satisfaction with examples. After Reading this, one should be uble to understand and deliver the best knowledge about benchmarking.
This presentation covers customer satisfaction with examples taken from famos motor brands i.e. Mercedese & Ford Motor Company. After Reading this, one should be uble to understand and deliver the best knowledge about customer satisfaction.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
2. Islamic finance is one of the most rapidly growing segments of the global financial system.
However, importance of Islamic finance is rapidly increasing day by day , around all over
the world. particularly in developing economies in the Middle East and South-East Asia.
Islamic Banking is also the part of Islamic Finance. Islamic finance is commercial activity
that reflect sound moral and ethical standards. There are more than 300 Islamic banks
operating worldwide and more than a fifth of the world's population are Muslims. The
development process of Islamic finance commenced at the beginning of the 7th Century
when Muhammad is professed to have received revelations directly from Allah (the God of
Islam). Moore (1997 p.3) regards the actual date as 613AD when Muhammad was about
forty years old.
SUMMARY
3. There are some problems which are faced by Islamic finance, Risk
Management in an Islamic Framework, risk speculation and gambling, financial
markets, globalization of financial markets, Prospects in the Private Corporate
Sector, Prospects at the Grass Roots and the Community Level, research and
development.
5. DEFINITION OF ISLAMIC FINANCE
• Islamic finance is defined as a service the is in accordance with laws and
principles of Islam, those comply with the sayings of Holy Quran , Hadith
and Sharia. Hadith is the narrative relating the deeds and utterances of
Muhammad; Sunna refers to the habitual practice and behavior of
Muhammad during his lifetime; Ijma is the consensus among religion
scholars about specific issues not envisaged in either the Holy Quran or
the Sunna; Qiyas is the use of deduction by analogy to provide an
opinion on a case not referred to in the Quran or the Sunna in
comparison with another case referred to in the Quran and the Sunna;
and Ijtihad represents a jurists’ independent reasoning relating to the
applicability of certain Sharia rules on cases not mentioned in ether the
Quran or the Sunna.
6. ISLAMIC FINANCIAL INSTITUTIONS ARE THOSE THAT ARE BASED, IN
THEIR OBJECTIVES AND OPERATIONS, ON QURAN’S PRINCIPLES
(PRINCIPLES OF THE MUSLIMS’ HOLY BOOK)”.
ISLAMIC FINANCE IS COMMERCIAL ACTIVITY THAT REFLECT SOUND
MORAL AND ETHICAL STANDARDS.
GLOBAL FINANCIAL CRISIS CONSTRICTING THE AVAILABILITY OF
CAPITAL, BORROWERS NEED TO CONSIDER ALL OPTIONS AVAILABLE
FOR THEIR FINANCING NEEDS. THESE OPTIONS TYPICALLY TAKE THE
FORM OF CONVENTIONAL BANKING AND CAPITAL MARKETS OPTIONS
ALTERNATIVE SOURCES OF. FINANCING ARE ALSO BEING
SCRUTINIZED.
ISLAMIC FINANCE HAS THE MOST DYNAMIC SECTORS OF THE GLOBAL
FINANCIAL INDUSTRY. AS OF JUNE 2008, THE ISLAMIC FINANCIAL
INDUSTRY AND ALL ITS SECTORS WAS ESTIMATED TO BE WORTH
ALMOST US$800 BILLION.
7. EXPLANATION
1. There are more than 300 Islamic banks operating worldwide and more than a fifth of the
world's population are Muslims.
2. Globally Islamic Banking suffered less than Conventional Banking.
. Sharia is a system that disallow the payment or acceptance of
interest fees for loans of money (Riba) for specific terms.
The Islamic law prohibit interest but allow to earn profit, this practice
motivated establishment and success of number of Islamic
Financial Institutions
8. HISTORICAL AND RELIGIOUS CONTEXT
• The development process of Islamic finance commenced at the beginning of the 7th Century
when Muhammad is professed to have received revelations directly from Allah (the God of Islam).
Moore (1997 p.3) regards the actual date as 613AD when Muhammad was about forty years old.
At the time, the doctrine of financial operations during Muhammad’s era was derived directly from
the Holy Quran and the Sunna (traditions) of Muhammad. Since then, while Islamic Sharia (Quran
and Sunna) has ostensibly coordinated all financial transactions between Islamic persons, there
has been a continuing process of mutual adjustment between Sharia and the actual financial
practices of Muslim societies. In Muhammad’s lifetime, Islamic methods of finance often drew
upon examples from the Prophet’s experiences. Kahf and Khan (1993)
9. EXAMPLE
• have pointed out that Muhammad was the first to use the Mudarabah
(silent partnership) in trade with a rich women named Khadija (who latter
became his wife). At the time, Muslims used to practice Musharakah (full
partnership) when operating large commercial enterprises under a
profit/loss sharing principle. In addition, Muhammad made it permissible
for people to use sale on credit (bai salaam) which was to finance
consumption or production without usury and he encouraged Muslims to
provide benevolent loans (Quard Hassan) (Kahf and Khan 1993). The
ongoing Islamisation of Arabic countries meant that Sharia rapidly spread
to both Muslims and non-Muslims at this time.
10. • After the death of Muhammad in 632AD, a great expansion of Islam
occurred throughout the Arabic states and in large parts of the non-Arab
world. The Islamic state in this ‘golden age’ was dominant in three
continents, Asia, Africa and Europe. According to Moore (1997) the
Islamisation of economic systems during the four centuries following
Muhammad’s death reached Morocco and Spain to the west, India and
China to the east, central Asia to the north and Africa to the south. The
extension of Islamic tools of finance is also indicated by historical records
of contracts registered between businessmen at the time, including
Mudarabah and Musharakah. Islamic finance practices continued largely
unchanged until the beginning of the 19th Century (Warde 2000).
11. • From the nineteenth century, nearly all Muslim countries fell under the control of the Western
colonial powers (France in North Africa, Britain and France in the Middle East, Britain in the Indian
sub-continent and Britain and The Netherlands in South-East Asia), effectively dividing the Islamic
world into many small states. Anwar (1995) argues that by the mid nineteenth century almost all
Muslim-controlled areas fell to the Western colonial powers and thus the existing financial scheme
which complied with Sharia was effectively replaced by the capitalist system. From then until the
second half of the twentieth century, most Muslim economies were dominated by the economic
traditions and systems of Western Europe (Moore 1997). However, while commercial banks,
insurance companies and other types of intermediary firms employed conventional methods of
finance (mostly as braches or agents of institutions in the colonizing country), Islamic methods of
finance were still often practiced between individual Muslims.
12. • With the independence of the Arabic countries from the colonial powers by the
second half of the twentieth century, many Islamic economies also became more
independent. As a result, Muslim economists started reconsidering the application
of Islamic finance into a formal banking industry. Iqbal and Molyneux (2005)
suggest the first attempt to establish an Islamic bank was in 1971 when the
Egyptian government established the Nasser Social Bank. This bank provided a
number of Islamic financial products, including interest-free loans to the poor,
student scholarships and small business credit on a profit/loss sharing basis. This
was followed by the Dubai Islamic Bank in 1975 and subsequent rapid
expansion. El-Qorchi (2005) attributes the rapid growth in the last thirty years to
several key developments. First, the strong demand from immigrant and non-
immigrant Muslims for Sharia-compliant financial services and transactions;
second, the growing oil wealth found in the Middle East; and third, the increasing
competitiveness of Islamic finance products vis-à-vis their conventional
counterparts. Other factors likely include the rise of fundamentalism and
resurgence of strident Muslim practice in many communities and the incentives
offered by governments in some Muslim countries to encourage the establishment
of Islamic banks.
13. A BRIEF REVIEW OF DEVELOPMENTS IN ISLAMIC
BANKING
• The first Islamic Bank was established in Pakistan in the 1950s. In Egypt
the Bank was established in 1963. The development of Islamic Bank
start in 1975. More than 200 Islamic banks and financial institutions
operating worldwide with over $200 billion assets. The number of Islamic
banks’ is currently increasing about 15 percent per annum.
• The objective of Islamic banks is to promote economic
development in Muslim societies by mobilizing financial resources
in accordance with Sharia.
14. THE OBJECTIVES INCLUDE THE FOLLOWING:
i. Provides such services which protects people from Riba.
ii. Develop banking services and products based on Sharia.
iii. create acceptable yield as reasonable profits to the shareholders.
iv. Achieve profitable transactions.
15. WHY ISLAMIC FINANCE?
• Original impetus –religious / ethical concerns
• Subsequent wider acceptance –commercial viability & business potentials:
• Wider consumer / investor base –Islamic & conventional
• Potential universal appeal due to ethical features
• Strong fundamentals –asset-based & real economic activities
• Proven track record of competitive return on investment
16. THE RISE OF ISLAMIC FINANCE
Islamic finance is spreading all around the world. Governments realizing its potential for profits
and jobs with each other to create the best regulatory and supportive framework for it.
The growth and acceptance of Islamic finance is increasing day by day. For some reasons, in
Muslim countries its growth is better. The storms of Islamic Finance is increasing globally.
The ethics and morals behind Islamic finance and Shariah -compliant is to ethical investing.
Islamic finance avoid gambling style speculation and interest rates, and all trading process.
24. ISLAMIC BANKING IN PAKISTAN
• Shariah Board established at SBP
• Islamic products available to cover 85% of the services offered by conventional banks
• Liquidity management products being developed
• Shariah audit developed by SBP
27. ISLAMIC BANKING IN PAKISTAN
• Full fledged Islamic Banks-6
Meezan Bank
Bank Islami Pakistan
Dawood Islamic Bank
Al-Baraka Islamic Bank
Dubai Islamic Bank
Emirates Global Islamic Bank
28. ISLAMIC BANKING IN PAKISTAN
• Many conventional banks operating Islamic Banking branches.
Bank of Khyber, MCB, Bank Al-Falah, Habib Metro Bank, Bank Al-Habib, Standard
Chartered Bank, Soneri, HBL, UBL, Askari, NBP, RBS etc.
• Expected shortly: Qatar Islamic Bank
29. THE WAY FORWARD
Islamic banking is a viable alternate
Islamic alternates of Banking products can be effectively developed for all types of needs
However, there is a need for proper research and development
Ulama, bankers and professionals need to co-ordinate more frequently
30.
31. TARGET MARKET: MUSLIM POPULATION
• There are approximately 1.6 billion Muslims worldwide (24% of total world’s population)
33. MIDDLE EAST & NORTH AFRICA
• 204 million Muslims GCC countries, UAE, IRAQ, EGYPT (13% of the total Muslims
populations)
• GCC (excluding OMAN): 17 commercial banks offering Islamic banking: Islamic AUM USD
100 Billion
• Oman: The government has discouraged the Islamic banking
• UAE: 15% (USD 37 billion) of banking assets under Islamic laws. Expected to grow to 20% by
the end of 2010
• Iran: 100% banking is as per Islamic laws, USD 35 billion
• Egypt: Prominent Egyptian Islamic Investment companies collapsed in the late 1980’s and the
concept is not encouraged by the government
34. SOUTH EAST ASIA
• 16 million Muslims in Malaysia and 195 million Muslims in Indonesia (13% of total Muslim
population)
• Malaysia: AUM USD 31 billion.
The Islamic money market in Malaysia channels funds ranging from USD 8-12 billion monthly.
Issued 60% of the world’s total Sukuk in 2006.
• Indonesia: only 1.2% of total banking assets under Islamic Finance.
35. OTHERS
• 439 millions Muslims in India, Pakistan, and Bangladesh(28% of the total Muslim Population)
• 16 Million Muslims in UK, US, Germany and France
• India: Only a few Non-Banking Financial Institutions operate on the Islamic System
• Pakistan: 11 banks offering Islamic products. AUM USD 3 billion at the end of 2006. Expected
to increase from 3% to 12% by the end of 2010
• Bangladesh: 10% of the total deposits under Islamic Banking system
• UK, US no estimates available for Islamic Finance AUM
36. PROSPECTS?
Young but very fast growing industry –l
Target market
Product development
Human capital
R & D
Lack of expectation with current economic & financial system:
Potentially more interest & open-mindedness towards alternative systems, including Islamic
finance
MIFC initiatives:
Government incentives & supports
Globalization& its effects
37. CHALLENGES?
Economic & financial doubt – entire economy
Human capital – ability & effectiveness
Research and development
Shariah compliance
Globalization & its effects
38. PROBLEMS OF ISLAMIC BANKING AND FINANCE
• From the last few Eras, the period in which Islamic banking and financial institution were
involving, great changes in the financial environment.
• Investment management in modern conditions have been vary from risk management
which is underdeveloped in Islamic finance. In Islamic perception, this is one of the areas of
conventional finance in need of extreme reforms.
39. RISK MANAGEMENT IN AN ISLAMIC FRAMEWORK
In business risk is high. But in industrialization risks brought in trade and agriculture. The
scope of the market has expanded to cover the whole world, introducing new kinds of risk.
When Islamic laws has been written, the nature and scope of risk and hesitation was
different. With the Modern experience something can still be learnt which, in combination
should enable us to realize the Shariah objectives of justice, fairness and efficiency.
Transactions should be based on complete information, in order to ensure neither party is
under any image. But with the mutual consent, some doubt can be tolerated in order to secure
larger advantages.
40. RISK, SPECULATION AND GAMBLING
In Islamic Finance it is important, to avoid gambling and other kinds of risk taking. Life is full of
risky situations which cannot be avoided. Business involves risk because the production of
wealth and other transactions involve the future.
On the subject of risk management in Islamic framework in general. In currency markets the
position is the same.
41. FINANCIAL MARKETS
At the End of financial markets in Islamic finance with a above view of the situation. If we
classify financial transactions into:
Money for money
Money for equity
Money for debt
Debt for equity
Debt for debt
Equity for equity
42. IN THE EYE OF ISLAMIC ECONOMISTS THEY
THINK THAT ISLAMIC FINANCE IS GOOD
FOR SOCIETY. THE EXPAND OF THE
FINANCIAL SECTOR THE DISTRIBUTION OF
INCOME AND WEALTH IS BENEFICIAL FOR
ALL. IT ALSO MAKES IT AGREEABLE TO
GAMBLING LIKE ASSUMPTION.
43. GLOBALIZATION OF FINANCIAL MARKETS
• Money moves from one side to another side is very easy now a
days. The exceptions are more. This change should be favorable
for Islamic Finance. There are two different reasons that the
problem may arise.
• Firstly in the home Country the economies are small But in the
Financial system economies is less complicated in the developed
countries.
• Secondly, Islamic financial institutions suffer from smallness and
this is very few to operate in more than one country .Globalization
has increased the exchange rates. Every country has different
exchange rates. with the help of this money can easily be transfer.
44. PROSPECTS IN THE PRIVATE CORPORATE SECTOR
In Islamic financial institutions Progress have been made by their
respective national authorities in view of the increasing market
share of these institutions. For the better understanding of Islamic
finance by the monetary authorities and closer cooperation between
them and these institutions.
45. CONT’D
The standards adopted the Accounting and Auditing Organization for the development of
Islamic Financial Institution. The need to standardize such basic elements of Islamic finance
as mudaraba, murabaha and Ijara is widely felt as the present lack of uniformity is baffling.
There is a big information deficit in the Islamic financial industry for its growth and
development.
Instead of that the industry continues to grow, especially in the Gulf countries. It has also
reached the newly independent Central Asian Islamic Republics. But these weak economic
conditions in those countries are naturally reflected in the state of their Islamic financial
institutions.
46. PROSPECTS AT THE GRASS ROOTS AND THE
COMMUNITY LEVEL
• The Islamic financial institutions are found outside Muslim countries. Many of them have
successfully completed their first session of operations. They are rapidly growing.
47. RESEARCH AND DEVELOPMENT
• R&D is the most important department for all organizations. All innovations need a base in
research and developments. Islamic finance became a subject in universities in 1980s.At the
present only a small fraction of the liquidity generated by Zakat passes through Islamic
financial institutions, a situation reflecting the distance between the poor, non-banking
population and these institutions.
49. ABSENCE OF ISLAMIC MONEY MARKET
The Islamic banks cannot invest their surplus fund because there is no Islamic money market
in Pakistan. Government Treasury Bills, approved securities and Pakistan Bank Bills in
Pakistan are interest bearing. Naturally, the Islamic banks cannot invest the permissible part
of their Security Liquidity Reserve and liquid surplus in those securities. As a result, they
deposit their whole reserve in cash with state Bank. Similarly, the liquid surplus also remains
un invested. On the contrary, the conventional banks of the country do not suffer from this sort
of limitations. As such, the profitability of the Islamic banks in Pakistan is adversely affected.
50. ABSENCE OF SUITABLE LONG-TERM ASSETS
In Pakistan there is absence of suitable long term assets for Islamic banks.
51. SHORTAGE OF SUPPORTIVE AND LINK
INSTITUTIONS
• In Pakistan there is no supportive and link institution.
52. ORGANIZING RELATIONSHIP WITH FOREIGN
BANKS
Another important issue facing Islamic banks in Pakistan is how to organize their relationships
with foreign banks, and more generally, how to conduct international operations. This is, of
course, an issue closely related to the creation of financial instruments, which would be
simultaneously consistent with Islamic principles and acceptable to interest-based banks,
including foreign banks.
54. CONCLUSION
Islamic finance is defined as a financial service principally
implemented to comply with the main tenets of Sharia (or
Islamic law). In turn, the main sources of Sharia are the Holy
Quran, Hadith, Sunna, Ijma, Qiyas and Ijtihad.
55. CONT’D
The main principles of Islamic finance include the prohibition of Riba and the removal of debt-
based financing from the economy, the prohibition of Gharar, encompassing the full disclosure
of information and removal of any asymmetrical information in a contract, the exclusion of
financing and dealing in sinful and socially irresponsible activities and commodities such as
gambling, casinos, production of alcohol, etc., risk-sharing, the provider of financial funds and
the entrepreneur share business risk in return for shares of profits and losses, materiality, a
financial transaction needs to have a ‘material finality’, that is a direct or indirect link to a real
economic transaction and justice, a financial transaction should not lead to the exploitation of
any party to the transaction.
56. CONT’D
• Islamic banks can satisfy most of the efficiency conditions if they can operate as a sole system in an
economy. Conventional banking, on the other hand, does not satisfy any of the efficiency conditions
analyzed above. However, when Islamic banks start operation within the conventional
• banking framework, their efficiency goes on decreasing in a number of dimensions. The
deterioration is not because of Islamic bank's own mechanical deficiencies; rather it is the
• efficiency-blunt operation of the conventional banking system that puts a negative impact on the
efficient operation of Islamic banks. The problems of Islamic finance and banking can be decrease
by switching over from PLS to trade-related modes of financing. Even under the conventional
banking framework Islamic banks can operate with certain level of efficiency by applying in a
reasonable percentage the PLS modes – the distinguishing features of
• Islamic banking. This has been possible in some countries of the Muslim world where the
management of Islamic banks was cautious about possible impacts of every policy measure.
Particularly, the management of these banks was judicious in selecting major sectors or areas of
their operations