Enthusiastic, dedicated, loyal, hard-working and experienced person, who prefers to read, think, ponder, write and share useful knowledge and information. Very fluent in Arabic, English and French languages and have more than 30 years’ experience in the fields of Islamic studies, and Islamic economics, banking and finance.
This is a Book Review of the Book entitled: "History of Islamic Economic Thought" by Prof. Abdul ... more This is a Book Review of the Book entitled: "History of Islamic Economic Thought" by Prof. Abdul Azim Islahi
This exploratory research paper attempts to provide a constructive argument to confirm or refute ... more This exploratory research paper attempts to provide a constructive argument to confirm or refute the Austro-American economist Schumpeter's thesis of "Great Gap" mentioned in his book The History of Economic Analysis in 1954. The aims of the paper are twofold. The major aim is to focus especially on the assessment of Schumpeter’s “Great Gap” thesis in the historical connotation of economic thought. Secondly, the paper aims to produce enough evidence to prove or disapprove his claim by presenting Muslim scholars’ contribution in the evolution of the economic thought in the gap period (700-1200 AD). This paper uses qualitative research design through narrative literature review analysis though which relevant literatures have been studied to explore whether Schumpeter’s “Great Gap” was really a gap or not. The findings show ample historical evidence that refutes his thesis of “Great Gap” in economic thought because there were huge literature found that gap period and most of the literature have been done by Arab-Islamic scholars. Also, there is a presence of self-contradictory statement while demonstrating his thesis. The findings of this research are useful for historians and economists to rethink the history of economic thought in the Middle Ages and create a scope for further research studies.
journal of king Abdulaziz University Islamic Economics
This paper is a critical response to the lead paper of the discussion forum entitled “The World E... more This paper is a critical response to the lead paper of the discussion forum entitled “The World Economy and Islamic Economics in the Time of COVID-19”, written by Benamraoui (2021). Benamraoui (2021) looked at the COVID-19 pandemic from the economic perspective. He pointed out that it has brought unprecedented challenges to the world economy, that have never been experienced before, including a sharp decline in economic output and substantial increase in the level of unemployment. He suggested that Islamic finance could provide solutions to reduce the impact of the pandemic. This paper argues that, it is true that COVID-19 has negatively affected the world economy in an unprecedented way. However, this is a global crisis like many other global crises that have battered the world before, and it will soon be over.
This is a PowerPoint Presentation prepared and delivered by Dr. Mustaf Omar from IIUM and transla... more This is a PowerPoint Presentation prepared and delivered by Dr. Mustaf Omar from IIUM and translated into the Arabic language by Dr. Chachi
Islamic microfinance programs have been used, for some time in Bangladesh, as an instrument to em... more Islamic microfinance programs have been used, for some time in Bangladesh, as an instrument to empower women and fight poverty. Women are specifically targeted by Islamic microfinance under the rural development scheme of Islami Bank Bangladesh Limited (IBBL), which provides interest-free-loans and many other benefits to the women groups involved. The main aim of this paper is twofold: firstly, to check for a positive relationship between Islamic microfinance and the socio-economic welfare of women and secondly, to explore the perspective in which Islamic microfinance packages function in Bangladesh and how the system of their performance can be enhanced. Based on a structured questionnaire survey, this study addresses two research questions: (1) What should be anticipated from the program of Islamic microfinance provided by IBBL on the well-being of the beneficiaries. (2) Under what circumstances would such a program be more useful?. The main result of this study shows that the gr...
Despite the fact that the countries of the Middle-East are rich in terms of per capita income in ... more Despite the fact that the countries of the Middle-East are rich in terms of per capita income in view of the income from oil, gas and other natural resources, they still fall far behind other developing regions, especially Latin America and South East Asia, in terms of economic development. The questions that arise are: what is the reason? Has Islam anything to do with this situation? Is there a conflict between Islamic values and economic development? These are the questions that this book tries to answer. --
Journal of King Abdulaziz University: Islamic Economics, 2011
<b>Arabic Abstract:</b> يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من... more <b>Arabic Abstract:</b> يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من خلال الوثائق الرسمية، والتقارير الصادرة عن مؤسسات استشارية متخصصة كمؤسسة لندن العالمية للخدمات المالية ، والدراسات الأكاديمية التي اهتمت بهذا الموضوع. وقد حدد المقال أهم العوائق التي قد تعرقل نمو وتطور التمويل الإسلامي في هذا البلد، وتناول ما وصل إليه أمر تذليل تلك العراقيل من منجزات من قبل الجهات المعنية. ومن جهة أخرى، وقف المقال على عدد من الفرص التي قد تتيحها السوق البريطانية للتمويل الإسلامي. وخلص المقال بعد ذلك إلى عدد من النتائج التي يأمل أن تستفيد منها جهات مختلفة؛ كهيئات الإشراف المالي في بلاد أخرى، والمهتمون بصناعة التمويل الإسلامي، بالإضافة إلى الجهات الأكاديمية والبحثية التي يثري برامجها تقديم أمثلة تطبيقية على واقع التمويل الإسلامي في أماكن مختلفة. <b>English Abstract:</b> This article examines the opportunities and challenges of Islamic finance in the UK through official documents, reports from consultancy firms such as the International Financial Services London (IFSL), and academic studies which have focused on this matter. The article listed the most important obstacles that may impede the growth and development of Islamic finance in this country and enlisted some of the achievements attained by the authorities concerned to overcome these obstacles. On the other hand, the article identifies a number of opportunities that may be offered by the British market for Islamic finance.The article concluded with a number of results which may benefit different entities; regulatory authorities in other countries, Islamic finance industry, as well as academia and research institutions whose programmes are enriched by the provision of practical examples of the reality of Islamic finance in different regions.
Thirty years ago, Islamic banking was unheard of. It was considered as, mentioned by the authors,... more Thirty years ago, Islamic banking was unheard of. It was considered as, mentioned by the authors, as "wishful thinking" (p.ix). It is only in the early 1970s, and especially after the launch of the First International Conference on Islamic Economics organized by King Abdul Aziz University in Makkah, Saudi Arabia and the establishment of the first commercial Islamic Bank, Dubai Islamic Bank (DIB) in the United Arab Emirates followed by the establishment of the international Islamic Development Bank (IDB) in Jeddah, Saudi Arabia and the many private and semi-private commercial Islamic banks that were established after that in Egypt, Sudan, Kuwait, Bahrain, etc. that Islamic banking established itself not only as a feasible and viable alternative of financial intermediation but also as an efficient and productive way of undertaking financial intermediation between surplus and deficit economic units.
journal of king abdulaziz university islamic economics, 2011
يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من خلال الوثائق الرسمية، والتقارير الص... more يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من خلال الوثائق الرسمية، والتقارير الصادرة عن مؤسسات استشارية متخصصة كمؤسسة لندن العالمية للخدمات المالية (IFSL)، والدراسات الأكاديمية التي اهتمت بهذا الموضوع. وقد حدد المقال أهم العوائق التي قد تعرقل نمو وتطور التمويل الإسلامي في هذا البلد، وتناول ما وصل إليه أمر تذليل تلك العراقيل من منجزات من قبل الجهات المعنية. ومن جهة أخرى، وقف المقال على عدد من الفرص التي قد تتيحها السوق البريطانية للتمويل الإسلامي. وخلص المقال بعد ذلك إلى عدد من النتائج التي يأمل أن تستفيد منها جهات مختلفة؛ كهيئات الإشراف المالي في بلاد أخرى، والمهتمون بصناعة التمويل الإسلامي، بالإضافة إلى الجهات الأكاديمية والبحثية التي يثري برامجها تقديم أمثلة تطبيقية على واقع التمويل الإسلامي في أماكن مختلفة.
Journal of Islamic Accounting and Business Research, 2020
Purpose The purpose of this study is to update the investment literature by providing latest evid... more Purpose The purpose of this study is to update the investment literature by providing latest evidence of performance of Islamic mutual funds by using global sample mutual funds data to support with empirical facts. Design/methodology/approach This study analyzes the comparative performance of Islamic and conventional mutual funds by using capital asset pricing model, Fama & French’s three-factor model and Carhart’s four-factor model. Further, the study tested the coskenwness effect by using data envelopment analysis approach. Findings The authors find evidence that when size of the funds is controlled, Islamic investment underperform the conventional mutual funds in four out of six models. The size of underperformance varies from model to model: from 32 basis points in the Carhart’s four-factor model with the skewness factor to two basis points at the Fama and French’s three-factor model. Also the study finds that alpha(s) are only insignificant for conventional mutual funds when th...
For most of this century, and despite the fact that there was no
agreement among economists as t... more For most of this century, and despite the fact that there was no
agreement among economists as to why interest should be paid, it was
almost unanimously held by most if not all economists that interest is
necessary for banking and consequently necessary for financial and
economic development and that any religion, like Islam, that prohibits
interest, is an obstacle to economic growth and development. This view
was not exclusively held by Western economists who may not know much
about Islam, but even by some Muslim thinkers who, repeating the
controversial arguments justifying interest, claimed that there is no
other way to develop except to leave the religion of Islam aside or at
least its economic and political aspects because it stands in the way
of progress and development. However, there were some other Muslim
scholars who were not so convinced of the Western and pro-Western idea
that interest is a necessary component of any financial and economic
development and were convinced that if Allah has forbidden interest
then there must be something wrong with it and when He allowed trade
and PLS (Profit and Loss Sharing) system of finance as alternatives,
then these must, perhaps, lead to the achievement of greater financial
and economic development 'without tears' (Kahf 1978). They sought in
the Koran and Sunnah a way of doing banking and encouraging development
that is not only complying with Shariah but that may lead to a more
just and more beneficial way of development. They dug into the
historical practices of the Prophet Mohammed (PBUH), his companions and
the early followers and found that the alternatives, to interest, that
were acceptable to, maintained and encouraged by, Islam, are trade
(profit) and the PLS system which were practiced long before the rise
of Islam, so they just applied the principles to today's banking
practices and called it 'Islamic Banking'.
This study aims to show that interest is not a necessary component
of banking, as was widely held before, and that Islam, by prohibiting
interest and permitting profit and Profit sharing as alternatives, is
not an obstacle to, but a promoter of, economic growth and development
with social justice.
This study also attempts to distill and refine the theoretical
bases of Islamic Banking. It critically surveys and discusses the
different theories that have been advanced to justify interest and
profits and compares the functions and institutions of the Islamic
Financial and Banking Systems with their Interest-Based counterparts.
It also discusses the likely impact of the Profit and Loss Sharing
(PLS) system, and empirically analyses the performance of some of the
oldest Islamic Banks vis-a-vis the performance of the Interest-Based
Banks of the same countries.
The empirical analyses undertaken showed that Islamic banking is
more appropriate and more relevant to the economic growth and
development of the Muslim World. Despite the fact that they are
operating in hostile and non Islamic environments, the existing Islamic
Banks have managed to mobilise substantial amounts of deposits and
contributed greatly to the finance of many economic sectors and
projects of the countries they are working in.
This is a Book Review of the Book entitled: "History of Islamic Economic Thought" by Prof. Abdul ... more This is a Book Review of the Book entitled: "History of Islamic Economic Thought" by Prof. Abdul Azim Islahi
This exploratory research paper attempts to provide a constructive argument to confirm or refute ... more This exploratory research paper attempts to provide a constructive argument to confirm or refute the Austro-American economist Schumpeter's thesis of "Great Gap" mentioned in his book The History of Economic Analysis in 1954. The aims of the paper are twofold. The major aim is to focus especially on the assessment of Schumpeter’s “Great Gap” thesis in the historical connotation of economic thought. Secondly, the paper aims to produce enough evidence to prove or disapprove his claim by presenting Muslim scholars’ contribution in the evolution of the economic thought in the gap period (700-1200 AD). This paper uses qualitative research design through narrative literature review analysis though which relevant literatures have been studied to explore whether Schumpeter’s “Great Gap” was really a gap or not. The findings show ample historical evidence that refutes his thesis of “Great Gap” in economic thought because there were huge literature found that gap period and most of the literature have been done by Arab-Islamic scholars. Also, there is a presence of self-contradictory statement while demonstrating his thesis. The findings of this research are useful for historians and economists to rethink the history of economic thought in the Middle Ages and create a scope for further research studies.
journal of king Abdulaziz University Islamic Economics
This paper is a critical response to the lead paper of the discussion forum entitled “The World E... more This paper is a critical response to the lead paper of the discussion forum entitled “The World Economy and Islamic Economics in the Time of COVID-19”, written by Benamraoui (2021). Benamraoui (2021) looked at the COVID-19 pandemic from the economic perspective. He pointed out that it has brought unprecedented challenges to the world economy, that have never been experienced before, including a sharp decline in economic output and substantial increase in the level of unemployment. He suggested that Islamic finance could provide solutions to reduce the impact of the pandemic. This paper argues that, it is true that COVID-19 has negatively affected the world economy in an unprecedented way. However, this is a global crisis like many other global crises that have battered the world before, and it will soon be over.
This is a PowerPoint Presentation prepared and delivered by Dr. Mustaf Omar from IIUM and transla... more This is a PowerPoint Presentation prepared and delivered by Dr. Mustaf Omar from IIUM and translated into the Arabic language by Dr. Chachi
Islamic microfinance programs have been used, for some time in Bangladesh, as an instrument to em... more Islamic microfinance programs have been used, for some time in Bangladesh, as an instrument to empower women and fight poverty. Women are specifically targeted by Islamic microfinance under the rural development scheme of Islami Bank Bangladesh Limited (IBBL), which provides interest-free-loans and many other benefits to the women groups involved. The main aim of this paper is twofold: firstly, to check for a positive relationship between Islamic microfinance and the socio-economic welfare of women and secondly, to explore the perspective in which Islamic microfinance packages function in Bangladesh and how the system of their performance can be enhanced. Based on a structured questionnaire survey, this study addresses two research questions: (1) What should be anticipated from the program of Islamic microfinance provided by IBBL on the well-being of the beneficiaries. (2) Under what circumstances would such a program be more useful?. The main result of this study shows that the gr...
Despite the fact that the countries of the Middle-East are rich in terms of per capita income in ... more Despite the fact that the countries of the Middle-East are rich in terms of per capita income in view of the income from oil, gas and other natural resources, they still fall far behind other developing regions, especially Latin America and South East Asia, in terms of economic development. The questions that arise are: what is the reason? Has Islam anything to do with this situation? Is there a conflict between Islamic values and economic development? These are the questions that this book tries to answer. --
Journal of King Abdulaziz University: Islamic Economics, 2011
<b>Arabic Abstract:</b> يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من... more <b>Arabic Abstract:</b> يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من خلال الوثائق الرسمية، والتقارير الصادرة عن مؤسسات استشارية متخصصة كمؤسسة لندن العالمية للخدمات المالية ، والدراسات الأكاديمية التي اهتمت بهذا الموضوع. وقد حدد المقال أهم العوائق التي قد تعرقل نمو وتطور التمويل الإسلامي في هذا البلد، وتناول ما وصل إليه أمر تذليل تلك العراقيل من منجزات من قبل الجهات المعنية. ومن جهة أخرى، وقف المقال على عدد من الفرص التي قد تتيحها السوق البريطانية للتمويل الإسلامي. وخلص المقال بعد ذلك إلى عدد من النتائج التي يأمل أن تستفيد منها جهات مختلفة؛ كهيئات الإشراف المالي في بلاد أخرى، والمهتمون بصناعة التمويل الإسلامي، بالإضافة إلى الجهات الأكاديمية والبحثية التي يثري برامجها تقديم أمثلة تطبيقية على واقع التمويل الإسلامي في أماكن مختلفة. <b>English Abstract:</b> This article examines the opportunities and challenges of Islamic finance in the UK through official documents, reports from consultancy firms such as the International Financial Services London (IFSL), and academic studies which have focused on this matter. The article listed the most important obstacles that may impede the growth and development of Islamic finance in this country and enlisted some of the achievements attained by the authorities concerned to overcome these obstacles. On the other hand, the article identifies a number of opportunities that may be offered by the British market for Islamic finance.The article concluded with a number of results which may benefit different entities; regulatory authorities in other countries, Islamic finance industry, as well as academia and research institutions whose programmes are enriched by the provision of practical examples of the reality of Islamic finance in different regions.
Thirty years ago, Islamic banking was unheard of. It was considered as, mentioned by the authors,... more Thirty years ago, Islamic banking was unheard of. It was considered as, mentioned by the authors, as "wishful thinking" (p.ix). It is only in the early 1970s, and especially after the launch of the First International Conference on Islamic Economics organized by King Abdul Aziz University in Makkah, Saudi Arabia and the establishment of the first commercial Islamic Bank, Dubai Islamic Bank (DIB) in the United Arab Emirates followed by the establishment of the international Islamic Development Bank (IDB) in Jeddah, Saudi Arabia and the many private and semi-private commercial Islamic banks that were established after that in Egypt, Sudan, Kuwait, Bahrain, etc. that Islamic banking established itself not only as a feasible and viable alternative of financial intermediation but also as an efficient and productive way of undertaking financial intermediation between surplus and deficit economic units.
journal of king abdulaziz university islamic economics, 2011
يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من خلال الوثائق الرسمية، والتقارير الص... more يتناول هذا المقال فرص وتحديات التمويل الإسلامي في بريطانيا من خلال الوثائق الرسمية، والتقارير الصادرة عن مؤسسات استشارية متخصصة كمؤسسة لندن العالمية للخدمات المالية (IFSL)، والدراسات الأكاديمية التي اهتمت بهذا الموضوع. وقد حدد المقال أهم العوائق التي قد تعرقل نمو وتطور التمويل الإسلامي في هذا البلد، وتناول ما وصل إليه أمر تذليل تلك العراقيل من منجزات من قبل الجهات المعنية. ومن جهة أخرى، وقف المقال على عدد من الفرص التي قد تتيحها السوق البريطانية للتمويل الإسلامي. وخلص المقال بعد ذلك إلى عدد من النتائج التي يأمل أن تستفيد منها جهات مختلفة؛ كهيئات الإشراف المالي في بلاد أخرى، والمهتمون بصناعة التمويل الإسلامي، بالإضافة إلى الجهات الأكاديمية والبحثية التي يثري برامجها تقديم أمثلة تطبيقية على واقع التمويل الإسلامي في أماكن مختلفة.
Journal of Islamic Accounting and Business Research, 2020
Purpose The purpose of this study is to update the investment literature by providing latest evid... more Purpose The purpose of this study is to update the investment literature by providing latest evidence of performance of Islamic mutual funds by using global sample mutual funds data to support with empirical facts. Design/methodology/approach This study analyzes the comparative performance of Islamic and conventional mutual funds by using capital asset pricing model, Fama & French’s three-factor model and Carhart’s four-factor model. Further, the study tested the coskenwness effect by using data envelopment analysis approach. Findings The authors find evidence that when size of the funds is controlled, Islamic investment underperform the conventional mutual funds in four out of six models. The size of underperformance varies from model to model: from 32 basis points in the Carhart’s four-factor model with the skewness factor to two basis points at the Fama and French’s three-factor model. Also the study finds that alpha(s) are only insignificant for conventional mutual funds when th...
For most of this century, and despite the fact that there was no
agreement among economists as t... more For most of this century, and despite the fact that there was no
agreement among economists as to why interest should be paid, it was
almost unanimously held by most if not all economists that interest is
necessary for banking and consequently necessary for financial and
economic development and that any religion, like Islam, that prohibits
interest, is an obstacle to economic growth and development. This view
was not exclusively held by Western economists who may not know much
about Islam, but even by some Muslim thinkers who, repeating the
controversial arguments justifying interest, claimed that there is no
other way to develop except to leave the religion of Islam aside or at
least its economic and political aspects because it stands in the way
of progress and development. However, there were some other Muslim
scholars who were not so convinced of the Western and pro-Western idea
that interest is a necessary component of any financial and economic
development and were convinced that if Allah has forbidden interest
then there must be something wrong with it and when He allowed trade
and PLS (Profit and Loss Sharing) system of finance as alternatives,
then these must, perhaps, lead to the achievement of greater financial
and economic development 'without tears' (Kahf 1978). They sought in
the Koran and Sunnah a way of doing banking and encouraging development
that is not only complying with Shariah but that may lead to a more
just and more beneficial way of development. They dug into the
historical practices of the Prophet Mohammed (PBUH), his companions and
the early followers and found that the alternatives, to interest, that
were acceptable to, maintained and encouraged by, Islam, are trade
(profit) and the PLS system which were practiced long before the rise
of Islam, so they just applied the principles to today's banking
practices and called it 'Islamic Banking'.
This study aims to show that interest is not a necessary component
of banking, as was widely held before, and that Islam, by prohibiting
interest and permitting profit and Profit sharing as alternatives, is
not an obstacle to, but a promoter of, economic growth and development
with social justice.
This study also attempts to distill and refine the theoretical
bases of Islamic Banking. It critically surveys and discusses the
different theories that have been advanced to justify interest and
profits and compares the functions and institutions of the Islamic
Financial and Banking Systems with their Interest-Based counterparts.
It also discusses the likely impact of the Profit and Loss Sharing
(PLS) system, and empirically analyses the performance of some of the
oldest Islamic Banks vis-a-vis the performance of the Interest-Based
Banks of the same countries.
The empirical analyses undertaken showed that Islamic banking is
more appropriate and more relevant to the economic growth and
development of the Muslim World. Despite the fact that they are
operating in hostile and non Islamic environments, the existing Islamic
Banks have managed to mobilise substantial amounts of deposits and
contributed greatly to the finance of many economic sectors and
projects of the countries they are working in.
Discussion paper on Beyond Imperialism: Continued Western Exploitation of Africa highlighting som... more Discussion paper on Beyond Imperialism: Continued Western Exploitation of Africa highlighting some of horific and abhorent forms of exploitation that the West Colonizers have inflicted on the African people even after their independebce
Beyond Imperialism: Continued Western Exploitation of Africa, 2024
Outline of the Presentation
Introduction
Quick Facts about Africa
The African Economic Paradox
De... more Outline of the Presentation Introduction Quick Facts about Africa The African Economic Paradox Definition of Capitalism and Imperialism The Historical Context of Imperialism in Africa The Scramble for Africa and the Berlin Conference of 1884-1885 Political Dominance Economic Exploitation Social Disturbance Examples of Some of the Worst Atrocities Committed by Western Colonial Powers in Africa
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Papers by Dr Chachi
agreement among economists as to why interest should be paid, it was
almost unanimously held by most if not all economists that interest is
necessary for banking and consequently necessary for financial and
economic development and that any religion, like Islam, that prohibits
interest, is an obstacle to economic growth and development. This view
was not exclusively held by Western economists who may not know much
about Islam, but even by some Muslim thinkers who, repeating the
controversial arguments justifying interest, claimed that there is no
other way to develop except to leave the religion of Islam aside or at
least its economic and political aspects because it stands in the way
of progress and development. However, there were some other Muslim
scholars who were not so convinced of the Western and pro-Western idea
that interest is a necessary component of any financial and economic
development and were convinced that if Allah has forbidden interest
then there must be something wrong with it and when He allowed trade
and PLS (Profit and Loss Sharing) system of finance as alternatives,
then these must, perhaps, lead to the achievement of greater financial
and economic development 'without tears' (Kahf 1978). They sought in
the Koran and Sunnah a way of doing banking and encouraging development
that is not only complying with Shariah but that may lead to a more
just and more beneficial way of development. They dug into the
historical practices of the Prophet Mohammed (PBUH), his companions and
the early followers and found that the alternatives, to interest, that
were acceptable to, maintained and encouraged by, Islam, are trade
(profit) and the PLS system which were practiced long before the rise
of Islam, so they just applied the principles to today's banking
practices and called it 'Islamic Banking'.
This study aims to show that interest is not a necessary component
of banking, as was widely held before, and that Islam, by prohibiting
interest and permitting profit and Profit sharing as alternatives, is
not an obstacle to, but a promoter of, economic growth and development
with social justice.
This study also attempts to distill and refine the theoretical
bases of Islamic Banking. It critically surveys and discusses the
different theories that have been advanced to justify interest and
profits and compares the functions and institutions of the Islamic
Financial and Banking Systems with their Interest-Based counterparts.
It also discusses the likely impact of the Profit and Loss Sharing
(PLS) system, and empirically analyses the performance of some of the
oldest Islamic Banks vis-a-vis the performance of the Interest-Based
Banks of the same countries.
The empirical analyses undertaken showed that Islamic banking is
more appropriate and more relevant to the economic growth and
development of the Muslim World. Despite the fact that they are
operating in hostile and non Islamic environments, the existing Islamic
Banks have managed to mobilise substantial amounts of deposits and
contributed greatly to the finance of many economic sectors and
projects of the countries they are working in.
agreement among economists as to why interest should be paid, it was
almost unanimously held by most if not all economists that interest is
necessary for banking and consequently necessary for financial and
economic development and that any religion, like Islam, that prohibits
interest, is an obstacle to economic growth and development. This view
was not exclusively held by Western economists who may not know much
about Islam, but even by some Muslim thinkers who, repeating the
controversial arguments justifying interest, claimed that there is no
other way to develop except to leave the religion of Islam aside or at
least its economic and political aspects because it stands in the way
of progress and development. However, there were some other Muslim
scholars who were not so convinced of the Western and pro-Western idea
that interest is a necessary component of any financial and economic
development and were convinced that if Allah has forbidden interest
then there must be something wrong with it and when He allowed trade
and PLS (Profit and Loss Sharing) system of finance as alternatives,
then these must, perhaps, lead to the achievement of greater financial
and economic development 'without tears' (Kahf 1978). They sought in
the Koran and Sunnah a way of doing banking and encouraging development
that is not only complying with Shariah but that may lead to a more
just and more beneficial way of development. They dug into the
historical practices of the Prophet Mohammed (PBUH), his companions and
the early followers and found that the alternatives, to interest, that
were acceptable to, maintained and encouraged by, Islam, are trade
(profit) and the PLS system which were practiced long before the rise
of Islam, so they just applied the principles to today's banking
practices and called it 'Islamic Banking'.
This study aims to show that interest is not a necessary component
of banking, as was widely held before, and that Islam, by prohibiting
interest and permitting profit and Profit sharing as alternatives, is
not an obstacle to, but a promoter of, economic growth and development
with social justice.
This study also attempts to distill and refine the theoretical
bases of Islamic Banking. It critically surveys and discusses the
different theories that have been advanced to justify interest and
profits and compares the functions and institutions of the Islamic
Financial and Banking Systems with their Interest-Based counterparts.
It also discusses the likely impact of the Profit and Loss Sharing
(PLS) system, and empirically analyses the performance of some of the
oldest Islamic Banks vis-a-vis the performance of the Interest-Based
Banks of the same countries.
The empirical analyses undertaken showed that Islamic banking is
more appropriate and more relevant to the economic growth and
development of the Muslim World. Despite the fact that they are
operating in hostile and non Islamic environments, the existing Islamic
Banks have managed to mobilise substantial amounts of deposits and
contributed greatly to the finance of many economic sectors and
projects of the countries they are working in.
Introduction
Quick Facts about Africa
The African Economic Paradox
Definition of Capitalism and Imperialism
The Historical Context of Imperialism in Africa
The Scramble for Africa and the Berlin Conference of 1884-1885
Political Dominance
Economic Exploitation
Social Disturbance
Examples of Some of the Worst Atrocities Committed by Western Colonial Powers in Africa