Islamic financial outlook and the influence of religion on the law

This presentation was given as part of the Islamic Law and International Law Conference 2011 by Professor Javaid Rehman from Brunel Law School. The conference was hosted by the Brunel Law School on the 9th September 2011

ISLAMIC EDUCATION INTITUTIONS IN THE CLASSICAL PERIOD (UMAYYAD AND ABBASID PERIODS)

Islamic education has existed since the Prophet Muhammad SAW and continues to develop until now. Islam once reached the peak of glory, called the golden age, because, at that time, Islamic education was very developed and produced an extraordinary scientific civilization recognized throughout the world with evidence of the development of various Islamic educational institutions during the Classical period. Therefore, it is essential to know the history of Islamic education, especially during the classical era of the Umayyads and Abbasids, to learn from this history. The aim of this research is the institution of Islamic education during the Classical period of the Umayyads and Abbasids. The research method uses library research by collecting various sources of books, articles, and documents about Islamic educational institutions during the Umayyad and Abbasid eras. The results of the study show that Islamic Educational Institutions began to develop during the Umayyad period, such as the Kuttab, Khan, and other Madrasas, then reached their peak during the Abbasid era, such as the Kuttab, Library, and Observatory, elementary, middle to high-level Madrasas. However, not long after that, the Abbasids were destroyed, and Islamic education began to decline. Therefore, it is essential not to be lulled by progress glory days and to continue to love science so that Islamic education can develop as befor

Default Risk On Islamic Banking In Indonesia

Stability of financial institutions is a crucial issue amid the economic crisis that hit the US and Europe. Islamic banking in Indonesia as financial institutions are also required to have good stability in order to maintain the stability of the national economy. The aim of this research is to determine the stability of Islamic banking in Indonesia, and understand the factors that affect the stability. Stability of Islamic banking will be measured using Merton model to estimate the Probability Default (PD). Panel data regression was used to estimate the factors that affect the stability of Islamic Banking. The object of this research is 10 Islamic banking in Indonesia that meet the specified criteria. From the analysis of the Merton model, the research found that the stability of Islamic banking in Indonesia is not good enough. This can be seen from the value of the probability default on Islamic banking which still above 0.5. However, based on the trend, the probability default of Islamic banking has decreased from year to year. Some of the variables that influence the stability of Islamic banking is asset and BI rate (SBI)

The significance of adopting the Islamic calendar in Islamic housing finance. Case study : Bank Muamalat Malaysia Berhad Parit Raja Branch

Malaysia is considered to be one of the most advance developed Muslim countries among Muslim countries that employ Islamic Banking system. In this context, Islamic Housing Finance has grown rapidly and becomes popular as a common solution for Muslims who desire to own home base on shariah principles. In Malaysia, banks which have Islamic Banking products employ Gregorian Calendar as the basis for their accounting system even though Surah At-Tawbah: 36-37 in Al-Quran has clearly depicted that there is a straight guidance for Muslims to use the Islamic Calendar for their mundane and spiritual lives. Factually, Gregorian Calendar is 11.5 days longer than the Islamic Calendar, thus using it will affect the calculation of loan repayment for every Muslim borrower. In previous research, discovered that Gregorian Calendar has caused the shortage of zakat payments by the Muslim customers, due to the shorter period of days calculated. This study was conducted to determine a reliable Islamic Calendar according hisab criteria (wujudul hilal) using Accurate Times. To identify the difference calculation between two calendars system and to calculate Islamic Housing Finance repayment in Islamic Calendar and Gregorian Calendar. Quantitative and Qualitative approach were employed in this research. Respondents are all customers at the Bank Muamalat Malaysia Berhad (Parit Raja) who chose Bai Bithamin Ajil (BBA) concept as their housing finance scheme. The calculation shows that total repayment in Islamic Calendar is lower than the Gregorian Calendar. Expert interview were used to identify the effect of employing Islamic Calendar in Islamic Banking system especially for Islamic Housing Finance. Finding indicates that the differences of total repayment between two calendar system reach average 1.04 per cent and most of the banks agree that Islamic Calendar can be employed as the basis of accounting system although many challenges appeared

International Human Rights: Islam\u27s Friend or Foe? Algeria as an Example of the Compatibility of International Human Rights Regarding Women\u27s Equality and Islamic Law

Part I of this Note briefly discusses the development of International Human Rights Law as embodied in international covenants today. Part I also discusses Islamic law, the traditional role of women under Islamic law and culture, Algeria\u27s Constitution and Family Code, and other dynamics specific to Algeria that have hindered women\u27s obtainment of equal rights in the modern era. Part II presents the debate between conservative Islamists who argue that international principles of human rights law are incompatible with Islamic law and the scholars who assert that the two are compatible. Part III, by focusing on fundamental principles underlying the provisions in both the international human rights doctrine and Islamic law, argues that international human rights provisions granting women equal status with men comport with Islamic law principles as much as do legal documents that the Algerian Government has drafted. This Note concludes that the deprivation of women\u27s equal rights based on the claim of conflict with Islamic law is unjustified and that the example of Algeria proves that Islamic countries can and should protect human rights without regard to gender

Crescent and electoral strength: Islamic party portrait of reform era in Indonesia

The establishment of Islamic political parties in the reform era in Indonesia after the fall of Suharto (1998), considered as resurgence of political stream. There are several factors that led to the revival of Islamic parties after the New Order, the theological factor, historical, sociological, and reform factor. The presence of Islamic political parties after the New Order was apparently diverse and fragmented. In the political elite of Islam itself in establishing a political party based on Islam and there is also based on nationality, and in establishing political party was using substantially approach and there is also that use formalistic approach. In the reform era elections, political Islam has failed, in which Islamic parties do not receive optimal support from voters Islam. The failure of Islamic parties in election of reform era is caused of factor among Muslims has been change the orientation of political views. Islamic parties in the reform era stuck in a political myth quantity, and Islamic parties are also fragmented and fractured in to small forces

The role of Islamic finance in economic development

Islamic financial institutions have been growing rapidly in the past few years. Islamic finance refers to investments that are permissible in accordance with Sharia, the Islamic law. Sharia law views money as a measuring tool for value and not an “asset” itself. “It does not permit receipt and payment of riba(interest), gharar(excessive uncertainty), maysir(gambling), short sales or financing activities that it considers harmful to society” (IMF website). Interest, a form of income from money, is therefore prohibited. For example, the income obtained from banks must come from the gain or loss of the enterprises they underwrite and not from interest obtained from loans granted. Sharia-compliant finance is thus often viewed as a unique form of socially responsible investment. Islamic finance exists to further the socio-economic goals of Islam. The question is: How can Islamic finance contribute to economic development? This essay explores its contribution to economic development through microfinance and the use of sukuk(Islamic bond). It will also explore the main opportunities and challenges for Islamic finance today. In order to facilitate the following reading, all Islamic terms used in this essay will be defined in the glossary (Appendix I)