Turkey is fast becoming the “poster child” for Islamization and Shariah-Compliant Finance. This is no secret, in fact another post from earlier today pointed this out:
We also came across another article about the emergence of sukuk, or Shariah-Compliant Bonds in Turkey. As we have pointed out on numerous occasions, sukuk are increasing the financial instrument of choice for promoting Shariah worldwide. We’ve described how that process works previously, but it is worth reviewing here before we get to the real purpose of this post:
• As we know from historical records and contemporary statements from Islamic leaders, the purpose of Shariah Finance/Islamic economics is to promote Shariah itself.
• Islamic imperialists are now using the credit markets to force Shariah-compliance worldwide, not just among and between Muslims.
• Sukuk impose Shariah-compliance two ways:
1. Islamic issuers increasingly issue Sukuk rather than conventional debt instruments. Therefore, creditors who want to invest in the credit markets are compelled to invest their money in a Shariah-compliant way.
2. On the flipside, Islamic investors who invest in the credit markets are increasingly insisting on Shariah-compliance, thus compelling issuers/borrowers to issue Sukuk instead of conventional credit instruments, such as debentures. This is happening in the sovereign debt markets, as well as the corporate debt markets. The power wielded by oil-rich Islamic nations, institutional and individual investors makes this form of Islamic imperialism to impose Shariah-compliance globally potentially very powerful.
Against that background, something that was said in the article on Turkish sukuk linked below caught our eye. Here is a quote from the article:
“Islamic finance is just like halal food, there may be two reasons to choose it,” said Mustafa Cetin, head of financial institutions at the Turkish arm of Bahrain-based Islamic lender Al-Baraka.
“Either you prefer interest-free products or you find the cost of borrowing, the taste, attractive.”
This outrageously misleading statement implies that Islamic financial institutions give away money for free. That is pure bunk. Financial jihadists have long lied to consumers by advertising their products as “interest-free,” with the intention of making unsophisticated borrowers believe that they are getting a loan for “free.” Mustafa Cetin’s statement above is no different. Islamic financial institutions may not charge interest but they most definitely have fees and charges associated with loans and borrowing. They just don’t call it “interest.” In fact, Shariah-compliant lending instruments frequently are more expensive to the borrower than are conventional loans . But we doubt you’ll ever hear or see Mustafa Cetin of Al-Baraka in Turkey admit any of that.