Shariah finance suffers growing pains
The Financial Times actually wrote a fairly balanced story on Shariah finance for a change. In the story linked below, FT’s journalist points out that Shariah-compliant financial institutions have proven just as vulnerable to the economic downturn and financial crisis as conventional counterparts. This, of course, flies right in the face of the propaganda being […]
More Trouble for Tawarruq Financing
Tawarruq financing is a concoction designed to give Shariah-observant businesses access to modern, mainstream financing. We touched on this briefly back in July when a controversy developed surrounding tawarruq: https://shariahfinancewatch.org/2009/07/24/shariah-authorities-disagree-over-tawarruq-financing/ It seems that some Shariah scholars believe that tawarruq is haram because it has deceptive elements and elements of interest included. (The reality is that […]
Malaysia’s stock exchange will launch a global murabaha trading platform next month to serve a market worth over $100 billion, amid fierce industry debate over the permissibility of the Islamic funding structure. http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSKLR43272420090728
Tawarruq financing is a concoction designed to give Shariah-observant businesses access to modern, mainstream financing. The apparent inherent contradiction got Tawarruq declared deceptive, with elements of interest prohibited under Shariah by the International Council of Fiqh Academy in Saudi Arabia. Now, a prominent Shariah scholar, who sits on no less than 46 Shariah advisory boards, […]
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