The Investment Capital Growth Blog

Welcome To The ICG Blog

Strategic Insights For Business Leaders & Their Teams

Investment Capital Growth is dedicated to the personal and professional development of C-Level Executives and the management teams that run modern business. Our blog shares insights and strategies culled from years of entrepreneural and executive experience. Our thought leaders regularly publish business articles to inspire and empower.

Get Inspired, Stay Connected:

  • Subscribe To Our Blog For Updates
  • Follow ICG on Social Media
  • Engage Our Consultants

Recent Post

Posts by Topic

  • No categories

ICG Newsletter Signup

ICG's Monthly Newsletter delivers insightful and actionable information for business owners and their teams. Get the latest updates from the ICG team each month including exclusive case studies, expert commentary, special offers and real life examples of business success. Join the thousands of subscribers that enjoy our informative publication by entering your contact information below.

Contact us.

Muslim Interest Rules

Posted by sabbir On November 23, 2022 at 12:48 pm

Muslim Interest Rules

although they require that the interest be used for “religiously meritorious purposes.” The movement began with activists and scholars such as Anwar Qureshi,[31] Naeem Siddiqui,[32] Abul A`la Maududi, Muhammad Hamidullah, in the late 1940s and early 1950s. [33] They believed that commercial banks were a “necessary evil” and proposed a banking system based on the concept of Mudrabah, in which the collective profit of investment would replace interest. Other books devoted specifically to interest-free banks were written by Muhammad Uzair (1955), Abdullah al-Araby (1967), Mohammad Najatuallah Siddiqui,[36] al-Najjar (1971) and Muhammad Baqir al-Sad.[34][35] [37] Instead of being offered an interest rate, you are offered a target profit that the bank will try to make for you by investing your money in compliant investments (this could include homes purchased under the bank`s Islamic mortgage program). The profit is taxable as well as interest on standard savings and current accounts. Since there is some risk, you must agree that you are happy to make a loss. Industry has been praised for returning to the path of “divine leadership” by rejecting the “political and economic domination” of the West,[4] calling it the “most visible sign” of Islamic revival,[13] its most enthusiastic advocates promise “no inflation, no unemployment, no exploitation and no poverty” once fully implemented. [14] [15] However, it has also been criticized for failing to develop profit and loss sharing or more ethical forms of investment promised by early project promoters,[16] and instead for selling banking products[17] that “meet the formal requirements of Islamic law,”[18] but “using cunning and evasion to hide interests,” [19] and “higher costs, greater risks”[20] than conventional banks (ribawi). It is an Arabic word that roughly translates to “exceed” or “increase” in English and is often associated with interest and usury, which is the imposition of unreasonably high interest rates. However, in the 20th century, Islamic/Islamist/activist revivalists worked to define all interests as riba in order to force Muslims to lend and borrow from “Islamic banks” that avoided fixed interest rates. Im 21. In the nineteenth century, this Islamic banking movement had created “interest-free financial company institutions throughout the world.” [30] Loans are allowed in Islam if the interest paid is related to the profit or loss of the investment. In Islam, the concept of profit functions as a symbol of the equal sharing of gains, losses and risks. Sharia law allows you to invest in shares of companies.

However, companies must not be involved in activities prohibited by Islamic laws, such as lending at interest, gambling, producing alcohol or pork. Islamic finance also allows for private equity investments. This rarity also increases fees. Two researchers noted that the small group of Sharia experts “earns up to $88,5000 per year per bank” and “can charge up to $500,000 for advice on large capital market transactions.” [440] [441] Income far beyond what was customary for Islamic scholars – luxury air travel and five-star hotels – as well as the greedy solicitation of their legal opinion by wealthy and high-ranking people,[442][443] can lead to what a writer (Muhammad O.