The rise of Islamic finance - Knowledge Works
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- Опубліковано 16 бер 2013
- Lecture details
Since its formation in the mid-1970s Islamic finance has grown rapidly, and appears to have come of age since the global financial crisis by nearly doubling in size from just over US $600 billion in 2007 to approximately $1.2 trillion in 2010.
In this latest Knowledge Works seminar Professor Mervyn Lewis will share the secrets of what makes Islamic finance a success and what attracts investors.Professor Lewis will explore Islam itself, and shari'a law, for these provide the religious and ethical principles underpinning the system.
Professor Lewis will also examine how Islamic banking and finance operate in practice, including Islamic investment funds and sukuk (bonds) that tap new global market segments and have driven the system's rapid growth. The seminar will close by considering the ways in which Islamic finance provides a viable and distinctive alternative to conventional finance.
This insightful Knowledge Works lecture is a not to be missed event for those conducting business or collaborating with Islamic finance organisations, or those simply seeking greater insight and understanding of Islamic business and its future.
Professor Mervyn Lewis is Professor of Banking and Finance at the University of South Australia and is a Fellow of the Academy of Social Sciences in Australia. Previously he was Midland Bank Professor of Money and Banking at the University of Nottingham and has been a Visiting Scholar at the Bank of England as well as the Inaugural Securities Commission-University of Malaya Visiting Professor.
Professor Lewis has published 22 books, 70 articles and 81 chapters and his research volumes include Islamic Banking (2001), Islamic Finance (2007), Handbook of Islamic Banking (2007) and An Islamic Perspective on Governance (2009).
Visit the Knowledge Works website at www.unisa.edu.au/knowledgeworks
All dislikes are from IMF and conventional bankers ...
same goes for anti-islam propaganda throughout the world and the western media apperatus.
🤣🤣🤣
My takeaway was that Muslims truly practice and apply their religious beliefs in how they lead their life - Finance in this case.
As per the professor, the global financial crisis could have been prevented if Islamic finance principles were followed.
How could a man in a desert 1400 years ago come up with such laws that apply to finance which are still relevant to date and far superior to the (scholarly and recently developed) conventional banks?
According to Islam Banks are the biggest culprit.. lending money on interest make rich Ann rich and poor man poor...isn't it the case in today's world..?
@@FaheemMalur agreed, if we were to consistently give sadkah and zakat, the society would be free of poverty
@@FaheemMalur True. banks deal in debt financing which is strictly prohibited in Islam. and if u look at the western banks that operate in Muslim countries, you'll notice that they eliminate that kind of financing to meet Islamic finance regulations.
@@oladiedoo50 yeah I heard about that before. someone said if all wealthy people gave the yearly Zakat poverty will end in a matter of a few years.
@@FaheemMalur what do you mean according to islam?
Islamic economic system is based on moral and more balanced genuine system in the world.
WOW, I hear these rules and I have to say, I agree 1000%. I am doing my best for The Truth Movement to see and Understand all of this and be enlightened to the fact that this system helps to UNENSLAVE HUMANITY!
It's because usury/interest causes enslavement
Actually you will find if you try to get a loan from an Islamic bank there is more paperwork and its more expensive. The enslavement occurs only because people borrow more than they should.
Everyone is realizing now islamic financing is better than all the other methods around . As human greed takes the better of the economy and global financial crisis arises.
Some just choose to deny it Specially Bankers / former bankers and those who might profit from the already established rich gets richer system . those who know the economic system cannot deny that islamic financing is much better for the economy for everybody involved.
And if the price is a bit more paper work so be it.
Its still better for everyone
@@roberthannah7983 they called Islamic, but not 100% Islamic system . Also most of them are branch of other Banks so of course the funding is not in the true Islamic system acceptable.
Fact. He’s the only intellectual/well-spoken individual who could be found to explain Islamic banking comprehensively.
Every banker in America ought to watch this video and learn.
Its better to cite the Qur'an/Sahih Hadith as the basis for every crucial points.
Anyway thanks for the video!
Mash'Allah - Professor Lewis has explained the Islamic Finance better than even many Islamic Scholars.
You're wrong. How did he learn, and where did he learn from if Islamic scholars and their teachings didn't help him learn?
@@fouzifouzi3393 Nice one.
What you say is wrong, he actually learned from what they said....
This is a good information as I misunderstood it before. It really seems just and non greedy!
By far, the easiest-to-understand, well structured lecture on Islamic Finance I've found so far. Not to mention, a well-done explanation on the theoretical and practical issues. There's definitely more to Islamic Finance, but dear Sir, you hit the mark in compressing it all into 40 minutes. Many thanks for producing this video lecture!!
Professor Lewis thank you very much for your conference and your analyse for ISLAMIC BANKING.
Very authentic and it is 100% true that Islamic trade system is beneficial for mankind if we apply this in our society.
Islam is a Holistic religion, human needs, both spiritual and physical should be dealt as one unit.
Islamic Banking, involves free trading and not monopolistic policies which combine with tech and machines creating unemployment.
With free trade and easy small businesses opportunities, will make people independent and less dependent on financial institutions.
Allah knows What is Best
In the byzantine Empire prohibited usury or charging interest , Their economy was growing in a steady way without any surprises .
I would not want to go back there!
Thanks professor Lewis for this full content information of islamic finance principles.I am Somali.
Me too...
Islamic banking is thriving back at home right now at the same time we need to be cautious as many banks are just marketing the word Islamic banking in their system.
Me too
Alhamdullilah for Islam
Such a " long ago " knowledge only now taken into consideration after global conventional banking system failure.
Kannnnnnnnnnnnnnnnnnnnn
I see the difference ein comments. From media channels and educational. Educational comment section actually have people who want to learn. And I praise u all. However media well u know.
THERE IS LOT OF MISUNDERSTANDING ABOUT THIS SYSTEM IN MANY COUNTRIES INCLUDING INDIA
THIS PHOBIA AND MISCONCEPTION OF ISLAMIC FINANCE AND BANKING MAY BE REMOVED BY CONDUCTING SEMINARS, SYMPOSIA AND CONFERENCES TO MAKE CLEAR TO THE NATIONS WHICH ARE IN DEBT TRAPS
@@solo.108 both
That is such a beautiful explanation, let's hope the lecturer is a Muslim, but if he is not, may Allah guide him to Islam, it's truly clear from his lecture that Islamic finance is the best solution to be offered to the modern world and in turn it can balance the spread of wealth and eliminate the puberty altogether with the implementation of Zakat which is the legal 2.5% of ones wealth accumulated (and that 2.5% has nothing to do with interest whatsoever), untouched but it can be included with that wealth added to what's already there for a period of time be it a 6 month period to the completion of the Islamic year and not the Gregorian calendar and this must be cleared!!, the Zakat of that entire saved wealth should be deducted in order to give in accordance to the Islamic conditions.
poverty*
@@DePeaceHunter Shit, i was wondering why u wrote this, i laughed for atleast 20min!!
Very interesting, thank you for this video! I learned a lot.
Thanks for the valuable lecture , and thanks to the lecturer.
Thank you very much for this lecture and for sharing it freely online!
Professor Lewis thank you very much for your conference and sharing intrest points about islamic banking🙏
Professor Lewis thank you very much for your conference
Professor, Thanks so much for your great presentation
Thanks for the excellent lecture, Professor Lewis if this is Islamic Finance, please with the same objectivity look into the comprehensiveness of Islamic teachings.
Very informative lecture. Thank you professor!
thank you. I learned many things from the lecture
Thanks for excellent lecture about Islamic finance.
Thanks for sharing!
Dear all Muslim, please NO RIBA
great lecture ,greed , misleading informations,speculation,poor governance , fiqh el mouamalt el malia ,is against all these in islam,many thanks for your objectivity in analysing the classic banking system , and it s faileure,the islamic financial transaction and the real economy work in peer. thank you
thank you
Very nice and useful lecture, thanks so much
I think it's not easy to develop Islamic finance
I'm Indonesian
even in Indonesia, which is known as country with the largest Muslim population in the world, has a new Islamic bank in 1992 and then must wait for 10yrs later then came the government support in the form of legacy that permit banks to operate by the sharia system
although the current practice of many islamic banks still not pure sharia, but their effort to provide finance which avoid usury would deserve our appreciation and support
betul mbak... semua butuh proses... kalau pemerintah berpihak ke Islamic bank, Insya Allah akan berkembang pesat...
Jangan berharap apa pun sama pemerintah yg ada sekarang hutang makin menggunung. Indonesia sudah jadi budak hutang dari IMF dan negara Tiongkok. Gak ada yg bisa di harapkan dari sistem Riba.
hanya susah karena perekonomian dunia diatur world bank yg menerapkan riba. jadi sama aja akan kecipratan efeknya kl terjadi inflasi.
so fascinating...thanks!
Mashaallah very nice and Lecture valuable video very interesting great personally professor may God bless him sulute sir thank I.a.m.Indian muslim jai hind 🇮🇳
Hi Rajab Construction,
Thanks for your comment. Also, did you consider subscribing to UniSA’s UA-cam channel? By doing so you will be rewarded with latest videos and notifications.
Greed is the cause of all financial crises.
Islamic financial is amazing!
very good job
This is very details thanks
Question :- The money or currency are printing based on debt.
Since the money is based of usury than should it be haram 'ab initio'.
Thus the question is can 'shariah compliance' made a 'haram' goods or services become halal?
money with out standardization of Gold & Silver is useless, so in order to protect the citizens wealth if the citizens earnings or money don't have the equivalence of that unit or amount of Gold & Silver then is Haram 1000%
masha'Allah. Finally someone understanding why this bqnking system is corrupt from its roots...
Hi, guys!
Please tell me when this lecture was held?
The channel is called "University of South Australia".
Very informative
Professor Lewis gives a very good overview and brief background of Islamic finance along with their potential benefits. However, he only compares the Islamic banking system to the U.S. financial system and only provides analogies in certain areas. He doesn't bring up and regulations such as Solvency II which have some similarities with Islamic banking in terms of goals of mitigating risk and which is arguably between Islamic banking and the U.S. system. He doesn't bring up mutual insurers which operate similarly to some Islamic financial institutions. He doesn't bring up how some of these developing Islamic countries have complex property rights issues which make the contract regulations a lot less powerful. He doesn't mention how much Islamic banking is integrated into the economy and to a point where we can question whether some of them are truly Islamic banks. Not bad but only the iceberg of a very complex institution.
Indeed a very complex premise, im sure most Muslims like me are unaware of full intricacies. Nit sure if a 2 hrs seminar can fully discuss this. But as an introductory course this is very clear and informative and have achieved what it was trying to achieve, which was to answer whether the Islamic finance system could have been the vaccine to (subprime mortgage) crisis?
good summary...although i disagree with much of the products that have been labeled as Islamic.
Why you disagree? This has been in Sharia for more 1200 years
I am an economist interested to complete a course on islamic finance? Would anybody can help me
Islamic banking complies by the law of moses(Torah) and the gospel of Jesus.
Yeap
@34:00 the results of Islamic banking and GFC's
The guy forgot about sadkah (charity) and zakat (minimum charity must pay).
I'm a proud muslim
Very interesting. lAfter 10 plus years Russia now 8/ 2023 announced that they're adopting Islamic banking system. Allah is great.
Wow😲👋
IT SHOULD BE IMPLEMENTED IN THE COUNTRIES WHICH ARE FACING FISCAL DEFICIT
I'd like to learn if I'm wrong and would appreciate if anyone would clarify this issue.
Due to the white face shown, Islamic banking may seem to be the least evil. But is it actually clear in the spectrum of halal/haram? In my country, they introduced Islamic banking and I checked their mortgage system. They call the charge what conventional banks call interest in an Arabic name. Sometimes, the return/interest paid to Islamic bank is higher than the conventional bank. Yes they may invest funds they get in moral investments. But however their earning is still interest the way I see. They charge money just because they lend money to you. Should we clear the name as Arabic Banking rather than calling Islamic banking in that case?
@nesar ahmed nope. Islamic Financing doesn't give a loan
Indeed Sarah , to develop Islamic finance took a long time of hving 2 compete with the existing system & oppose the minds of Muslims in Islamic countries about their k'ledge in Islamic finance & still assume Islamic banking system is Riba system . In Malaysia there are efforts to improve the system from time to time . M'sia & Brunei hv implemented Shariah Compliance in Islamic banks,other Islamic countries hv achieved basic sharia . I already transfer my financing to KFH ( branch in M'sia)
🌹♥️👌
What about trading in stock market
its halal because you making money by decision .
Just buy a shares of halal one you will be come partner of company in lose or profit
If company earn profit its shred dividend and you can earn money by
selling own share
Only share mode is perfect Islamic Banking
If the world financial system was using Islamic Financing Principals there will never be a global financial crash which means that a large portion of home owners collectively getting screwed by the fat cats using the horrible traditional financial system and they couldn't pay back their loans, it happened on a huge scale at one time which led to the world financial market collapse
you are generalizing too much. the problem is that Islamic finance is not available for everyone who wants it. i live in america and it's very few banks do islamic banking and in very selective areas. another problem is that even in Islamic countries, Islamic banking is not totally islamic. it contains some aspect of pseudo-ribah.
The teachings didn't give us the demerits of interest which should be
I'm wondering about some facts.
Are poor people in the middle east, less poor because of Islamic finance?
Do rich people actually give more to the poor?
At first glance it doesnt look like it.
Dubai doesn't seem to share much with the surrounding poor countries, or am I wrong?
Do they follow Islamic financial principles?
The Middle East doesn’t apply Muslim finance
Middle Easterns countries are poor because of other reasons, such as war, secterian divide, holy land conflict etc.
Call it profits or interest it’s same thing
What are the types of money in Islam?
Islam considers commodities with intrinsic value as currency. The following are some examples of commodities that can be used as currency: gold (as Gold Dinar), silver (as Silver Dirham), dates, wheat, barley, and salt.
I was reflecting about the idea of submission that seems to be at the root of Islam and that i think upsets many westerners. I am starting to think though that simply translating "islam" with submission is not correct, because submission has a negative connotation in Western culture. I think that the idea of "submission to God" can be seen as ACCEPTANCE of life as it comes. It reminds me a lot of Taoism.
A deeper meaning of the submission is submitting to God's legislation. In this world you're bound to submit to someone or something. Muslims simply choose to submit to the creator of creation and god is surely not ignorant regarding his creation rather god is most aware of this, therefore reserving the right to dictate how humanity should live is reserved to God Almighty.
Sharks, profiteers and power thirsty scum won't like these principles.
You are absolutely right
the intro makes it seem like a documentary about aliens. But good elect anyways.
Additionally, I find the following logical inconsistencies in the Islamic banking laws. Bear with me and if anyone can logically explain why most welcome.
1-Under Sharia law, charging interest is unlawful. As if doing appropriate due diligence investigation, asking proper questions to a debtor to intermediate capital from differing risk tolerance levels was deemed as parasitic behavior.
If interest is not an appropriate term, then we must settle on a different term that may be theologically acceptable; for one that essentially compensates the lender for the discomfort of not having his or her liquid resources at hand against uncertainty. Then it's more about semantics than about fundamentals.
2- How do Islamic scholars distinguish unconditional reward (some risk is necessary to reap a reward) against "Maysir" (speculative transactions) when business ventures are essentially an act of speculation? By this, speculation is judged on moral grounds rather than taking an unhedged long or short position assuming future events will return favorable outcomes. Even wave surfers in Bondi beach can be classified as speculators. As a surfer takes out swimming in the open ocean, he stops somewhere and positions his surfboard t a certain distance from the beach shore, calculating that the next best wave that will pick him up will allow him to win the surfer's cup or crash him to a reef.
4-How much risk is acceptable so as not to become entangled in Maysir considerations? Boeing aircraft or Airbus create high-value products and they essentially gamble using cutting-edge technologies in markets that are rife with uncertainty. Risk management tools are essential to finding the right combination of exposure to variables that determine the firm's outcomes. This combination of exposures to limit risk require markets where myriad players enter with their own motivations. One of them is the pure gambling instinct, which lends liquidity to financial futures and options that are purchased or sold under differing motivations.
5- Oil price volatility can be excessive and prices can increase by not increasing production. Is inventory hoarding an acceptable practice in Sharia law or regarded as Maysir? Does margin-based oil future contract financing enter the Maysir typology or is it good Islamic financing practice?
6- Under Islamic law, no one can sell what he doesn't own. This, in normal financial terms, means naked-shorting. Well, in non-Islamic markets traders can lawfully short securities by borrowing from a third party to be able to sell them. If the trader correctly guessed the market has grossly overpriced, the security in question could go crashing downward. In this case, the trader performed a valuable social service to the market, making an honest profit in the process.
7- Islamic law, with its dogma-based approach to valuation, does not provide better and more informed decision-making processes than non-Islamic capital markets. Islamic law scholastic moral faith-based set of rules are not immune from personal and collective biases inherent in evaluating uncertainty and calibrating risks.
8-Are Islamic financial institutions allowed to underwrite risk as Lloyds of London does? Is it lawful from a sharia point of view or off-limits?
As a conclusion, Islamic banking can be viewed as a niche product but by no means, it's a superior means of administering or identifying adequate risk-benefit combinations of a set of mutually exclusive projects under capital rationing.
It's important to note that Islamic banking and finance are based on a different set of principles than traditional banking and finance. These principles are derived from Islamic law (Shariah) and aim to promote ethical and socially responsible investment practices.
Regarding your concerns:
1. Islamic finance prohibits charging interest as it is considered exploitative. Instead, Islamic finance uses profit and loss sharing (PLS) and risk-sharing models. The concept of risk sharing ensures that the lender and borrower share both the risk and the reward of the investment. The lender provides the funds, and the borrower invests them in a profitable venture. If the venture succeeds, the profit is shared between the lender and the borrower based on an agreed-upon ratio. If the venture fails, the losses are also shared. This model encourages responsible lending and discourages excessive risk-taking.
2. Islamic finance does not prohibit speculation but prohibits gambling, which is based on chance rather than skill. Speculation is not inherently bad but becomes problematic when it leads to excessive risk-taking or when it harms society. Islamic finance encourages ethical and socially responsible investments that benefit society as a whole.
3. Islamic finance recognizes that risk-taking is necessary for economic growth but emphasizes responsible risk-taking that does not harm society. Islamic financial institutions are required to evaluate the risks and benefits of each investment and ensure that they comply with Shariah principles.
4. The acceptability of inventory hoarding in Islamic finance depends on the context. If hoarding is done to manipulate prices, it is not permissible. However, if it is done to ensure a stable supply of a commodity, it may be permissible. Margin-based futures contracts are permissible in Islamic finance as long as they comply with Shariah principles.
5. Short selling is not allowed in Islamic finance as it involves selling something that one does not own. Instead, Islamic finance uses alternatives such as leasing and deferred payments.
6. Islamic finance recognizes that decision-making processes are subject to personal and collective biases. To mitigate these biases, Islamic financial institutions are required to have independent Shariah boards that oversee their operations and ensure that they comply with Shariah principles.
7. Islamic financial institutions are allowed to underwrite risk as long as they comply with Shariah principles. This involves evaluating the risks and benefits of each investment and ensuring that they comply with Shariah principles.
In conclusion, Islamic finance is a different approach to finance that is based on principles derived from Islamic law. It promotes responsible and ethical investment practices that benefit society as a whole. While it may not be superior to traditional finance, it offers a different perspective and a set of principles that may appeal to some investors.
-- Here are some references for each of the points I made:
1. Islamic Banking and Finance: Fundamentals and Contemporary Issues by Hassan Abbas, University of Birmingham Press, 2011.
2. Islamic Finance: Principles and Practice by Hans Visser, Edward Elgar Publishing, 2012.
3. Islamic Banking and Finance: New Perspectives on Profit Sharing and Risk by Munawar Iqbal and David T. Llewellyn, Edward Elgar Publishing, 2002.
4. Islamic Finance: The Regulatory Challenge by Simon Archer and Rifaat Ahmed Abdel Karim, John Wiley & Sons, 2007.
5. Islamic Banking and Finance in South-East Asia: Its Development and Future by Angelo M. Venardos, Palgrave Macmillan, 2011.
6. An Introduction to Islamic Finance: Theory and Practice by Zamir Iqbal and Abbas Mirakhor, John Wiley & Sons, 2007.
7. Islamic Finance: A Practical Guide by Iqbal Khan, Harriman House, 2010.
These books provide a comprehensive overview of the principles and practices of Islamic finance and banking, as well as their historical and cultural context. They also address many of the challenges and criticisms of Islamic finance, including those related to risk management, moral and ethical considerations, and the differences between Islamic and conventional finance.
بيوتفل واي 😊
Most populous Islamic country is Indonesia with more than 204 million Muslims not India.
The slide he was speaking about was in reference to the country which has the highest number of muslims that are a minority. Whilst Indonesia is indeed the most populous Islamic country, muslims there form the majority. In india however, the muslim community is a minority, relative to its 1.2 billion+ population. Hope this clarifies..
2.2 bilion christians where? here in Germany lots of churches but people are not following christianity!
It’s an interesting phenomena, however it most certainly is not a complete answer to western societies banking woes. What we need is a democratic, block-chain based currency. This Islamic model still makes banks unfairly filthy rich.
There is nothing wrong in getting rich while benefiting other individuals and the society. The problem is in getting rich by harming other individuals and the society while taking advantage of the poor.
What is the difference between paying rent and paying interest? They are one in the same, as far as I can see
lets say you buying a car via a bank
interest: you are paying for the value of the car plus a percentage of the value (interest), the value of the interest depends on how early or late your making your payments. so your paying for the loan and not for the commodity you set to buy
islamic: you are buying the car from the bank at a fixed price that, you are paying for a product.
interest is causes inquality and massive concentration of capital in the hands of few, increases in living costs a study in germany should that when %80 percent of the population paid more interest than the received, %10 percent paid as much as they recevied, and the top %10 received more than they paid and 8 times more than the 90 combined.
@@LLMood When you pay interest, the interest rate fluctuates regularly based on the central bank's interest rate given to the lending bank. The end user has no control over it and cannot predict what would it be at all.
Renting to buy is when the bank becomes a merchant who buys the car from the auto dealer and resells it you, just like any agent, with an agreed mark up (profit) and then the new price is paid by the buyer (the end user) over a number of agreed months by paying *fixed* installments that doesn't change or fluctuate with the market.
@@LLMood Are you from Germany?
@@harethbanimustafa337 exactly.. you got it.. Thats how i know
Islamic Finance System. Based on. “” INTRINSIC Value””. Precisely. In exchange of GOLD / SILVER VALUE in weight & EQUIVALENT. AMONUT OF THAT CURRENCY ISSUED BY. CENTRAL BANK . So , it means. , No INFLATION ~~~ NO RECESSION ~~~ NO DEFLATION .+++. Price. Stability of the product …. You can. Plan. Today something to buy in three years ( For example), price would not change even after THREE YEARS . >>> so you do not need. Need LOAN FROM THE BANK TO GET IT OR EVEN SAME-THING APPLIES FOR BUSINESS .
In Poland, despite close interaction with western banking system, there was no banking crisis and subsequent depression. Why? Edit: and no islamic influence, I suppose. May be more decency, less greed, more due diligence.
Good for the poles but that’s not the case in the rest of the world
your participation in it affected not only Poland but rest of the world. This conventional system rewards riches and decimated the poor. The riches are becoming richer and poor becoming poorer. Those with highest capital will be rewarded the highest.
It's one of speculation
If the mortgage by a Islamic bank and they charge 200000 for a house which cost 100000 over the time which is time is money which is riba in the back door by gog and Magog
shanoofparayil in islamic law this wont happen, anyways u wont understand. u follow what u r following
Not always. You are refering only to middle eastern lending systems where risk is shared only between the lender and lendee. Some countries share the risk between the lender the lendee and rhe seller of goods
All you find in the Quran is a half dozen verses on the prohibition of riba as practiced by unscrupulous unregulated moneylenders, riba is not defined and there is debate about what the prophet meant by riba. There is usually an accompanying reference to injustice. Conclusion - riba is about financial exploitation, not about reasonable interest in modern financial markets. Risk - there are some references prohibiting gambling. The rest of Islamic finance is an invention of Islamic scholars.
Muslims may wish to call the list of sharia compliance finance rules described by the lecturer "Islamic finance" . But to assert that all of this is based on the revelations from Allah is going too far.
Its interesting that Islamic banks fared better in the 2007-08 financial crisis as the lecturer notes, as they were less leveraged and did not play with derivative based securities. There is now a literature on the subject that maybe there is "too much finance" going on, too many opaque layers, and excessive financial fragility in conventional finance. This for me is the useful insight from Islamic finance.
I agree with you. The concept of "riba" is poorly understood by Muslims but I believe it is already defined by Almighty Allah Himself in the holy Qur'an:
Surah Aal-e-Imran, Ayah 130:
يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَا أَضْعَافًا مُّضَاعَفَةً وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُفْلِحُونَ
O you who believe! do not devour usury, making it double and redouble, and be careful of (your duty to) Allah, that you may be successful.
So according to this Ayah in the Qur'an "riba" can be defined as the exploitative loans offered by the modern day loan sharks such as the payday loans where the interest charges can be exponential. So riba is probably not the small interest charges taken by the conventional banks as long as the accumulated interest does not double the original principal as per the description of "riba" in the Qur'anic Ayah.
@@diiriyetv Yes this is the interpretation of modernist scholars such as Fazlur Rahman Malik and Abdullah Saeed.
The Quran lays down the basic principles and the scholars derive various financial tools that are in compliance with these basic principles. One of the reasons for that is financial systems are not one size that fits all times and all places. What is working now may not have worked a 1000 years ago and may not work 100 hundred years from now. Also, the Quran is book of guidance and not a book about finance, science, history, etc., even though it talks about all these topics and others but within the context of being a book of guidance.
We are in a era where dogs attempts to pretend lion😂
First learn ABCD of Islam, then comment on it
Don't think Islam is like other ideologies, where you can say anything about
Greed is good.
Pecunia non olet.
Had to laugh when he states that Islam is opposed to greed. What comes to mind when you say Arab sheikh? Saudi Prince? I’ve seen their obscene palaces and sports car collections, while millions in their country can’t afford bread.
There are no kings and queens in Islam. Should tell you about the "Islam" the Saudi regime follows. Same goes for Iran. Sadly there are or were islamic scholars that sold their Religion for some dirty profit. But do not smear their dirt onto Islam, islamic teachings go strictly against greed and corruption and anything that enables it.
These are arabs with western values and protected by western armies
You are right but those represent only themselves they don’t represent Islam, you can only judge religion based on your own experience and what the religion rules teach. If your Dr tells you don’t drink Alcohol, it will cause you a liver failure and you still go and get drunk and end up sick, who should be blamed you or your Dr. You see Islam is perfect literally perfect but people are not and they will never be. Life is a cycle of tests, therefore you are exposed to both failure and passing and to pass you just need to get better every time you fail. Islam just gives you the tools to help you pass. Inshallah if you become a Muslim one da, please follow the rules and don’t become like those arabs you mentioned.
Islam is the most accepted religion
What are the types of money in Islam?
Islam considers commodities with intrinsic value as currency. The following are some examples of commodities that can be used as currency: gold (as Gold Dinar), silver (as Silver Dirham), dates, wheat, barley, and salt.