Australian Centre for Islamic Finance Islamic Finance course week 01 notes
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The Insurance Sector in the Middle East and North Africa: Challenges and Development Agenda1/16/2013 This paper studies the causes of the low development of the insurance sector in the Middle East and North African (MENA) region, particularly for long term insurance. The paper shows that life and non-life premiums, as well as assets, are very low relative to expected levels given per capita income and demographic characteristics, and examines the causes of such poor performance. Rodney R. Lester World Bank March 1, 2011
Difference Between Islamic Banking And Conventional Banking By Dr. Maulana Ejaz Ahmad Samadan
Distribution of Wealth in Islam by Mufti Mihammad Shafi
An introduction to Islamic finance By Mufti MUHAMMAD TAQI USMANI
The contents of the World Takaful Report 2012 are based on a combination of quantitative data and qualitative comments and hence provide a subjective assessment of the current Takaful market. All quantitative comments are based on published information wherever possible. Where published reliable data was not available, qualitative comments were made which may or may not reflect the true state of affairs. Information has been assimilated from secondary sources, including published country, industry and institutional information, and primary sources, in the form of interviews with industry executives.
Islamic Finance is one of the most developing industries today, with a compound annual growth rate estimated at 50 to 20 % per annum between 2006 and 2010 and several countries competing for the “gold medal” to become the ultimate Islamic Finance hub. This situation does not seem to apply for North African countries, where Islamic Finance is still lagging behind other Muslim countries in the GCC or South East Asia, or even behind non Muslim countries such as the United Kingdom.
In its 2012 Islamic Wealth Management Report illustrated by masterpieces of Islamic calligraphy, by the Chinese Muslim master Hajji Noordeen, deals with the theme “The path to corporate transformation – converting a company to Islam”. Bank Sarasin reviews the complexities of converting a business to Islam, a topic which is rarely discussed or written about. Conversion is complicated by the need to address every aspect of a business, the lack of broadly accepted standards and regulations, and differences in the Muslim world itself. The Report, released today, is the Bank’s third on Islamic Wealth Management.
Today the world economic system, that is based on interest, has resulted in concentrating the wealth in the hands of selected few creating monopolies and widening the gap between the rich and the poor. In contrast Islam encourages circulation of wealth and regards its role as important to an economy as the flow of blood to our human body. Just as clotting of blood paralyzes human body, concentration of wealth paralyzes economy. The fact is that today 10 richest men in the world have more wealth than 48 poorest countries of the world. Millions are malnourished, lack access to safe water, cannot read or write, in short the quality of life has decayed and the graph continues to go down.
This paper investigates the question of whether the phenomenon of Islamic finance or Islamic Banking is truly globalizing, that is, spreading as a universal alternative to conventional finance and banking or whether the proponents of such a view are spreading a myth or are themselves simply deluded by their own enthusiasm. The paper addresses various aspects of the globalization of Islamic finance, among others, the issue of the rise of Islamic banking in the West, Islamic jurisprudence and finance, global standards and integration of Islamic finance, and obstacles facing Islamic finance’s integration and growth into the global financial system. One central question asked in this paper is whether the globalization of Islamic finance as a system is even possible, and if so how can it take place?
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