Islamic Finance as Basis for a New International Finance Protocol

2015 ◽  
Vol 5 (2) ◽  
pp. 5-16 ◽  
Keyword(s):  
International Finance ◽  
Islamic Finance

scholarly journals ISLAMIC FINANCE DOCTRINE: THE NATURE AND EVOLUTION (the end)

2018 ◽  
Vol 2018 (2) ◽  
pp. 65-78
Author(s):  
Oleg MOZGOVYI ◽  
◽  
Oleksii SUBOCHEV ◽  
Oksana YURKEVYCH ◽  
◽  
...  
Keyword(s):  
Financial Markets ◽  
International Finance ◽  
Asset Management ◽  
Islamic Law ◽  
Commercial Banking ◽  
Islamic Finance ◽  
Real Sector ◽  
Finance Industry ◽  
Financial Hedging ◽  
Political Economic

The article identifies basic models of Islamic finance industry and provides a critical assessment (compared to conventional finance) оf mechanism of their functioning. Despite having obvious positive aspects, such as limitation of speculative or risky securitization, focusing on financing the real sector of economy and encouraging the direct interrelationship between financial and productive sectors, in our view, the mechanism of Islamic economics in some ways is at variance with a number of fundamental principles of effective economic activity. Objective factors (demographic, political, economic) cause an increase of role and influence of the industry over regional financial markets and international finance and determine the relevance of further research in this area. Today, Islamic finance comprises such commercial areas as capital markets, asset management and insurance. They represent all segments of modern financial market – commercial banking, operations with equity and venture capital, trade financing, insurance and even financial hedging. Only a small share of Muslims’ financial relations is provided in accordance with Islamic law. Under conditions of introducing the convenient, liquid and standardized financial instruments and further improvement of regulation for financial markets, redistribution of resources in favor of Islamic financial markets, as well as rapid growth of their share in international finance are expected.

scholarly journals Islamic Financial Instruments and Law: Application of the Sharia Islamic Laws by the Courts of England the United Arab Emirates

2017 ◽  
pp. 48-57
Author(s):  
Валерий Федчук ◽  
Valeriy Fedchuk
Keyword(s):  
Financial Crisis ◽  
International Finance ◽  
United Arab Emirates ◽  
Islamic Law ◽  
Global Financial Crisis ◽  
Islamic Finance ◽  
Financial Assets ◽  
Financial Instruments ◽  
Free Zone ◽  
The Global Financial Crisis

The total amounts of Islamic financial assets has grown exponentially lately and it is important that it has happened in conditions of the global financial crisis. An increasing number of Islamic finance instruments were adopted in the new IF centers of London and Dubai, including its financial “free zone”, the Dubai International Finance Centre (DIFC), while many of them contain choice-of-law clause (English and DIFC) and jurisdiction clause. Due to the fact that the proper law of a contract can be only the law of a country or a jurisdiction, neither the English nor the DIFC courts can apply Islamic Law norms directly but both can apply them indirectly when it is recognized as relevant. They have already on several occasions demonstrated their willingness to apply principles of Sharia Law especially in determining whether an instrument, concluded with excess of power by one of its parties because it is ribawi or it does not comply with Sharia Laws. Accordingly, the present article is mainly devoted to the analysis of the problem of indirect application of Sharia norms by English and DIFC courts which is particularly relevant in the areas of foreign trade contracts and groups of companies.

scholarly journals The Importance and Expansion of the Islamic Bank Sector

2021 ◽  
Author(s):  
Gyöngyi Bánkuti
Keyword(s):  
International Finance ◽  
Risk Sharing ◽  
Banking System ◽  
Fundamental Difference ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Expansion Process ◽  
Muslim Population ◽  
Banking Systems

Islamic Finance grows in international finance across the globe. The aim of this study is to introduce the importance and specificities of the rapidly expanding Islamic banking system worldwide, as well as its expansion process. After a summary of the economic principles of the Islamic banking systems, with special emphasis on the principle of profit and risk sharing, - which essentially distinguishes Islamic and traditional interest-based banking systems - special highlight will be on the countercyclical feature of Islamic banks, which is also a fundamental difference from the procyclical feature of the traditional banking systems. The spread of the Islamic banking system is investigated, also stated, that the growth of it can be only partly explained by the expansion of the Muslim population. It can be stated, the Islamic banking system will become a decisive factor that will gain more portion of the financial market, mostly in some specific regions, but also worldwide – especially considering only the distribution of non-speculative transactions is concluded.

scholarly journals ISLAMIC FINANCE DOCTRINE: THE NATURE AND EVOLUTION

2018 ◽  
Vol 2018 (1) ◽  
pp. 71-81
Author(s):  
Oleg MOZGOVYI ◽  
◽  
Oleksii SUBOCHEV ◽  
Oksana YURKEVYCH ◽  
◽  
...  
Keyword(s):  
Financial Markets ◽  
International Finance ◽  
Asset Management ◽  
Islamic Law ◽  
Commercial Banking ◽  
Islamic Finance ◽  
Real Sector ◽  
Finance Industry ◽  
Financial Hedging ◽  
Political Economic

The article identifies basic models of Islamic finance industry and provides a critical assessment (compared to conventional finance) оf mechanism of their functioning. Despite having obvious positive aspects, such as limitation of speculative or risky securitization, focusing on financing the real sector of economy and encouraging the direct interrelationship between financial and productive sectors, in our view, the mechanism of Islamic economics in some ways is at variance with a number of fundamental principles of effective economic activity. Objective factors (demographic, political, economic) cause an increase of role and influence of the industry over regional financial markets and international finance and determine the relevance of further research in this area. Today, Islamic finance comprises such commercial areas as capital markets, asset management and insurance. They represent all segments of modern financial market – commercial banking, operations with equity and venture capital, trade financing, insurance and even financial hedging. Only a small share of Muslims’ financial relations is provided in accordance with Islamic law. Under conditions of introducing the convenient, liquid and standardized financial instruments and further improvement of regulation for financial markets, redistribution of resources in favor of Islamic financial markets, as well as rapid growth of their share in international finance are expected.

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