Reliance on statistical data on trade and development for Islamic countries cannot forecast the state of the future state of reconstruction of the Muslim World in this…
Reliance on statistical data on trade and development for Islamic countries cannot forecast the state of the future state of reconstruction of the Muslim World in this field. The limitation here is due to the age‐old debility of the Muslim World to project any significant economic, social and institutional transformation in the light of her own communal interest and self‐reliance. Thus the past economic data on trade and development variables show no pattern of future change. Forecasting with these data simply projects the past state of the Muslim World into the future. For these reasons, a model of reconstruction and transformation of the Muslim World on Islamic grounds necessitates reliance on normative issues. Yet these are issues that are First theoretically modelled and then empirically investigated for viability according to survey data.
Despite the apparent orientation of the world economy and markets towards globalisation, it is obvious that this process is dominated by trends of regionalisation and big…
Despite the apparent orientation of the world economy and markets towards globalisation, it is obvious that this process is dominated by trends of regionalisation and big economic blocs. Needless to say that this inclination towards groupings is dictated by the fierce competition at the world scale, economically and politically. Almost all of these economic blocs group countries with a lot of similarities in their socio‐economic and political structures as well as cultural set‐ups, geographical proximity and apparent vested mutual interests. An immediate question which comes to the mind when one thinks of the Islamic Common Market (ICM), where there is supposed to be free flow of products, capital, entrepreneurship, labour and technology among the members, as well as a common tariff wall against third parties, is whether the Islamic countries qualify for these criteria or not. The Islamic countries are known to be a diverse group in terms of their economic structures and levels of development, political systems, ethnic backgrounds, as well as a diversified social cultural milieu, although most of them draw on a common source, Islam. This heterogeneity has often been taken as the major argument against the feasibility of an ICM. However, we believe that although this heterogeneity creates a lot of problems, it is also a source of strength if it is positively thought of in terms of diversity and is carefully manipulated.
Post‐Cold War world is a bastion of economists, strategists and cold calculators. It is a world of vehement competition and mergers in the name of economic integration and the rise of market power, from the cradle to the grave. While the belligerence of world‐wide military conflict recedes, yet the raison d'etre behind the passion for acquisition and political strategem out of war, is all over being realized through the instrument of economic power. In this economic power resides institutional functions integrating dominant decisions in view of shared returns from a well‐coordinated direction of change by design.
The purpose of this paper is to examine the current legal framework for payment system in international Islamic trade finance vis‐à‐vis the new regime introduced by the…
The purpose of this paper is to examine the current legal framework for payment system in international Islamic trade finance vis‐à‐vis the new regime introduced by the Uniform Customs and Practice for Documentary Credits (UCP) 600 as well as the Sharī'ah Standard on Documentary Credits issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Sharī'ah Resolutions of selected Sharī'ah Boards of Islamic financial institutions.
A partial comparison of both the UCP 600 and the Sharī'ah framework for documentary credit is given through the content analysis of relevant sources.
The AAOIFI Sharī'ah Standard on Documentary Credits, as well as other applicable Sharī'ah resolutions of Islamic financial institutions, does provide a good framework for a Sharī'ah‐compliant documentary credit system, which is unique to trade in Islamic finance products, but there is scope for further improvement, taking into consideration the two possibilities proposed in the available literature on the subject – harmonization or bifurcation of rules. The UCP 600 also allows for the exclusion or modification of the rules to suit the specific needs of the Islamic finance industry.
This study focuses only on UCP 600 and the Sharī'ah framework on Documentary Credits, though bearing mind that there are other frameworks for documentary credit systems such as the International Standby Practices (ISP98) and letters of credit issued under Article 5 of the New York Uniform Commercial Code.
Islamic financial institutions should implement the provisions of the AAOIFI Sharī'ah standard on documentary credits but may require a different framework for international trade financing involving both Islamic banks and conventional banks.
Though few studies have been conducted on Sharī'ah issues regarding the application of the documentary credits, this seems to be the first time where a more proactive step is taken to propose two different frameworks for transactions involving Sharī'ah compliant financing.
The proposed paper aims at contributing an objective analysis of the nature, agenda and politico‐economic and strategic dynamics of the contemporary movement of…
The proposed paper aims at contributing an objective analysis of the nature, agenda and politico‐economic and strategic dynamics of the contemporary movement of globalization. The paper is going to explore the significant patterns of economic changes, which have culminated into global warfare, resulting from the contemporary world‐level experiences of globalization and the corresponding revolutionary tendencies responses encountered on the global level.
In this background, the rationale for adhering to the Islamic program of universalization shall be addressed from the point of view of the sustainable development of the Islamic world.
Because of either the perpetual nature (e.g. in case of Pakistan's debt crises) or recurring nature (e.g. in case of Malaysia's slow down in 1997‐98 and in 2001) of the economic crises of the Islamic countries within the prevailing framework of the capitalistic globalization, the inevitable way out for the realization of the sustainable economic and human development in the Islamic world seems to be offered only by the Islamic program of universalization.
This is perhaps the first attempt to analyze globalization vis‐à‐vis its multidimensional impact on the Islamic world.
Asserts that the world needs to integrate economic issues with social demands and discusses ideas on the unity of knowledge (including Islamic theories). Develops a string…
Asserts that the world needs to integrate economic issues with social demands and discusses ideas on the unity of knowledge (including Islamic theories). Develops a string model of the process of unification as seen by the Koran and applies it to the Islamic financing division of a Saudi Arabian bank to show how it can produce an “interactive financial index” encompassing social well‐being, economic development and financial profitability. Claims that this could not be achieved in any other way and contrasts the Islamic approach with mainstream economic ideas. Assesses how the Islamic approach works in practice by looking at the bank’s portfolio and relating it to social well‐being and policy.
The globalisation of western countries creates large forces with which to compete. States that Islamic/Arab countries often compete with each other rather than forging…
The globalisation of western countries creates large forces with which to compete. States that Islamic/Arab countries often compete with each other rather than forging strong partnerships. Attempts to outline the strategy needed to achieve the Arab shared objective of co‐operation and peaceful existence. Builds on existing research and presents a theoretical, conceptual and empirical discourse based on recent developments in economics and relationship management and marketing theories using semi‐structured interviews. Discusses the barriers to success and makes recommendations for change such as an Arab Common market.
A theoretical methodology premised on the epistemology of divine unity as the world view of all Islamic socio‐scientific inquiry, is introduced. This general theory based…
A theoretical methodology premised on the epistemology of divine unity as the world view of all Islamic socio‐scientific inquiry, is introduced. This general theory based on the knowledge‐centred interactive, integrative and evolutionary process of social becoming is next formulated for the specific case of capital markets. The methodology premised on unity and unification of knowledge is shown to be a universal application interconnecting science and society through a process‐oriented knowledge‐centred model. Finally, the generalized theoretical methodology and its specification to the case of Islamic capital market is used to critically evaluate Malaysia’s Islamization program, specially during the heady days of her stock market and currency turmoils. Alternative policy recommendations are provided for a newer outlook on Malaysian development and capital market Islamization programs. A general inference is thus derived and conveyed to the field of capital market stability arising from a direct linkage between real sectoral activities and endogenous money as store of value of real transactions. The approach of this paper being epistemological in nature, it undertakes a fundamental look at Qur’an and Sunnah for developing shari’ah‐rules (Islamic law), i.e. ahkam as‐shari’ah (rules derived from shari’ah), in the area of socio‐scientific inquiry in general and Islamic capital market in particular.
Arafat and Rabin's famous handshake opened a new stage in the Middle East peace talks. Recent delays in the process have centered more around economic than political…
Arafat and Rabin's famous handshake opened a new stage in the Middle East peace talks. Recent delays in the process have centered more around economic than political issues. Two main controversies revolve around means for distributing aid funds and the development of viable financial networks in the Israeli Occupied Territories. These agenda are reviewed from the viewpoint of promoting U.S. trade interests in the region. Islamic banks, if they are granted licenses by the Israeli government, may provide an effective means for distributing funds, while at the same time promoting U.S.‐Arab mercantile trade.