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Islamic Finance and Maqasid Al-Shariah Nowadays Essay

Table of Contents Introduction Strict Adherence to Maqasid Al-Shariah The Prohibition of Riba The Economic Substance of Prohibition Conclusion Works Cited Introduction For decades, Islamic finance has progressed in different parts of the world. After its creation in the early 1970s, Islamic banking has grown significantly not only in Muslim-populated countries but also in nations with Christian majority faithful. In Islamic banking, various transactions such as the imposition of interest (riba) are not allowed following some set sharia rules that regard such moves as unjustified. Prohibited deals are viewed as differing from the financial and economic principles of Islam. Islam is not only a religion but also a way of life for the Muslim faithful. Thus, all kinds of transactions, whether banking or non-banking, have to adhere to the laid-down sharia principles. In other words, contemporary Islamic financial transactions are prohibition-driven since they are restricted to follow the Maqasid Al-Shariah, which is the key pillar that governs Islamic finance. Strict Adherence to Maqasid Al-Shariah Islamic finance is underpinned by four main objectives that revolve around Islamic, social, economic, and ethical guidelines. The four broad objectives otherwise referred to as Maqasid Al-Shariah, are essential for Islamic financial institutions to serve their clients efficiently (Worthington 32). From a sharia-based economic perspective, in case any Islamic financial institution fails to adhere to the outlined objectives, it is bound not to survive in the market. According to Aribi and Arun, Maqasid Al-Shariah influences the development of the structure of “Islamic Finance Institutions (IFIs)” (785). Therefore, it is important for banks to adhere to the laid objectives while offering various services to customers. However, conventional financial institutions do not follow all the objectives since their core mandate is to maximize profits for the banks’ owners. Furthermore, Islamic finance functions under strict moral and ethical standards, which prohibit business transactions that are associated with unjustified returns (Housby 12; Saifuddeen et al. 318). The moral aspect of Maqasid Al-Shariah protects Islamic banking against fluctuations such as the global recession experienced in 2007 and 2008. The Prohibition of Riba In the Arabic context, riba implies an unwarranted increase in the value of business deals. On the grounds of riba’s definition, jurists in the Arabic world believe that there is no need for increasing the value of two similar goods as a way of preventing unfair compensation. In this regard, Islamic finance underlines the need for the realization of fair compensation since it goes a long way in fostering equality among the adherents of Islam. As such, the difference between legal compensations and the forbidden riba is the most basic differentiating factor of Islamic finance as a prohibition–driven sector. In other words, Islamic finance advocates for the embracement of mechanisms that uphold the essence of the fairness of contract pricing (Abdul-Rahman 71). Canonical texts on riba also underline the need for upholding justice in the corporate world. The Quran denotes some of the prohibitions of riba, owing to its implications to all Muslim faithful. Riba al-Nasĭa is one of the strictly forbidden forms of Islamic finance as underpinned in the Quran. Particularly, the riba al-Jahiliyya is a notable aspect of Riba al-Nasĭa that denotes a significant restriction that characterizes Islamic finance (Aribi and Arun 789). Riba emphasizes the need for believers to uphold the essence of charity as a multiplier of wealth, as opposed to the unjustified increase of proper over others. Riba Al-Fadl is another form of the prohibition under Islamic finance, which discourages the trade of similar goods in varying quantities. It underlines the need for trading gold for gold and nothing more since any increase would denote the prohibited riba (Aribi and Arun 790). In this light, riba Al-Fadl encourages Muslims to adhere strictly to the set laws and regulations. The Economic Substance of Prohibition Over the past few decades, Islamic finance has applied prohibitions to facilitate the separation of numerous financial credit facilities and risk elements with the view of realizing accurate pricing. Strategies, including the development and securitization of financial derivatives in the Islamic context, denote some of the notable advancements made in accounting to guarantee accurate pricing (Abdul-Rahman 67). Consequently, Islamic finance facilitates the equitable distribution of credit among individuals who have accounts with various Islamic financial institutions. As such, Islamic finance protects individuals from the adverse effects of excessive borrowing. Therefore, the observance of Maqasid Al-Sharia and riba plays a considerable role in fostering the realization of equitable growth and development in Arabic society (Abedifar et al. 642). In this light, the nature of Islamic finance seeks to prevent stakeholders from engaging in considerable financial risks to the extent of undermining the wellness of the entire society. Conclusion The provisions of sharia law have a substantial influence on contemporary Islamic finance. Financial institutions in the Islamic world observe the provisions of sharia such as Maqasid Al-Shariah and riba, among others, which are prohibitive in nature. Nonetheless, in contemporary settings, financial institutions uphold the essence of maximizing profits, thereby undermining the welfare of the wider public, as required in the contemporary Islamic finance. The paper has argued that the prohibitive nature of today’s Islamic finance is contrary to other institutions whose agenda is to maximize profits through means such as interests at the expense of account holders. Get your 100% original paper on any topic done in as little as 3 hours Learn More Works Cited Abdul-Rahman, Yahia. The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking. 2nd ed., John Wiley
Share this: Facebook Twitter Reddit LinkedIn WhatsApp An Evaluation of the communication skills demonstrated in the assessment of a service user This essay will evaluate an admission assessment observed a specific assessment observed which was done by mentor. Communication skills that she used will be analysed. Furthermore appropriate literature will be used to understand if the communication skills that were used were the most effective as well as that of both verbal and non-verbal communication skills. All names have been changed for patient confidentiality in accordance with the NMC guidelines (NMC, 2008).The patient will be referred to as Mrs. Smith. Mrs. Smith is an 80yrs old lady widower living alone in a bungalow. She was admitted to the ward from A

UArizona Young Athletes Self Esteem Performance Anxiety & Autonomous Motivation Review

UArizona Young Athletes Self Esteem Performance Anxiety & Autonomous Motivation Review.

1. The topic: Each student must select and review 1 article from a professional refereed journal pertaining to the topics of motivation and/or arousal/anxiety in sport or sport performance. The written abstract should contain a summary of the main points of the article and a conclusion that includes your comments as to how the information will enhance your professional knowledge.The main points of the review should include why the study was done (the purpose of the study), which if any theory is being tested, any pertinent information in the introduction or conclusion that relates back to class concepts covered, the main results of the study, and the main conclusions of the study.The inclusion of your comments regarding how the information will enhance your professional knowledge is most important. You will need to relate the study and its information back to course content and to what you wish to do in your professional career.2. Paper Length and Style: Your paper must be a maximum length of 5 pages, and it must be typed, 1 inch margins, and 12 point Times Roman font. The APA style is required, 3. You will need to turn in the full article with your paper
UArizona Young Athletes Self Esteem Performance Anxiety & Autonomous Motivation Review

WSU Advantages and Disadvantages of the High speed Rail Case Discussion

help writing WSU Advantages and Disadvantages of the High speed Rail Case Discussion.

Read Chapter 5: Scope Management and Chapter 6: Project Team Building, Conflict, and Negotiation in attached textbook for reference and answer below questionsActivity 3Case Study 5.2: California’s High-Speed Rail ProjectA goal of the Obama administration has been to promote high-speed rail across the most populous and geographically-dispersed states in the United States. The idea is to adopt more energy-saving initiatives while also helping to improve state’s infrastructure. It is with this in mind that the Federal Government made billions available to various states in the 2008–2010 budget cycles. After the Fall, 2010 elections, several states that had elected Republican governors refused the grants, suspicious that this seed money would not be sufficient to pay for what they viewed as unnecessary construction based on over-optimistic expectations of the need for and use of high-speed rail. One of the states that accepted the money and has moved forward strongly into high-speed rail has been California, which has already begun work on a 65-mile section in the middle of the state, earning the derisive nickname, the “train to nowhere.” This case details the state’s projections regarding the need for high-speed rail, against the views of infrastructure experts and critics who charge that for a state that is already in a severe budget crisis, this is just the sort of project that makes no sense economically or demographically.QuestionsAssess the benefits and drawbacks of the high-speed rail project. In your opinion, do benefits outweigh drawbacks, or vice versa? Why? Justify your answer.What are the implications of starting a project based on tenuous projections that may or may not come true 10 years from now?Could you justify the California high-speed rail project from the perspective of a massive public works initiative? In other words, what other factors enter into the decision of whether to pursue a high-speed rail project? Why are they important?Case Study 6.1: Columbus InstrumentsThis case is based on a true story of a once-successful organization that had allowed its project management practices to degenerate to the point where assignment to a project team was often a mark of disfavor and a sign of pending termination. The case involves issues of motivation, structural effects on projects, and project team staffing. It offers students an opportunity to see how, if left unchecked, certain behaviors by department heads and others in the organization can work counter to the desires to use project teams to improve organizational profitability and instead make them a dumping ground for malcontents and poor performers.QuestionsWhat are the implications of CIC’s approach to staffing project teams? Is the company using project teams as training grounds for talented fast-trackers, or as dumping grounds for poor performers?How would you advise the CEO to correct the problem? Where would you start?Discuss how issues of organizational structure and power played a role in the manner in which project management declined in effectiveness at CIC.EVERYTHING SHOULD BE IN APA FORMATEVERYTHING SHOULD BE PLAGIARISM FREE. PLEASE POST PLAGIARISM RESULT.CITE ALL THE REFERENCES
WSU Advantages and Disadvantages of the High speed Rail Case Discussion

I need a 5 pages essay for history 10

I need a 5 pages essay for history 10.

According to T.H. Breen, a “charter society” is the first group of people who move into an area and get to establish the rules that other groups who arrive later must follow or else they move on. Although the Native Americans were the first groups in the Americas, by 1790, the Spanish and English ultimately became the “charter societies” that established the rules, while Natives, Africans, and other Europeans (particularly the French, Germans, and Scots-Irish) did not. What specific technological, demographic, social, political, economic, and cultural factors resulted in the Spanish and English and not the Natives, Africans, and other Europeans (the French, Germans, and Scots-Irish) becoming the “charter societies?”
I need a 5 pages essay for history 10

Say’s Law Coursework

Say’s Law Coursework. Say’s law is summarized as ‘supply creates more demand’. It indicates that activity meant to produce aggregate output with enough income to purchase the entire output produced. The law indicated that insufficient demand for production or excess production was unlikely to occur at the minimum of an extended period. The law explains further that economy would easily maintain full employment of the resources. The major element of Say’s law is that recession does not happen as a result of lack of money or failure in the economy. In terms of business he argued [against the belief that business was suffering since people lacked enough money and therefore should be printed more. The believers of the theory holds that power to purchase could only upsurge by more production. During great recession, there was less supply and therefore the demand was also low. The argument consistent with the Says point is that the purchasing power of the populace depends on the increase in the production of goods and services. There are a number of policies which the government can put in place according to the Says law. The first policy is to come up with stimulus program to increase the production of goods and services in the economy. The stimulus program will ensure that the existing companies produce more products in the economy and at the same time enhance the capacity of the small companies to produce the right and required products in the economy. Another policy that the government can put in place is the tax secession. The tax break policy can be given to firms which are involved in the production of those products which required in the economy. Low taxes will mean that the cost of production will go down and therefore revenue and profits will realize an upsurge. Therefore the supply of products and services in the economy will definitely increase. How Did Marx and Keynes Challenge Say’s Law? These critiques came during the depth of great depression in 1936.The first question is on whether or not supply does help in the creation of demand. According to them and the principles the generated revenue through production process usually ends up as the household income though does not happen instantaneously. Households can only spend the income that they have. If the income is less then expenditure, sales will be less, less will be produced and therefore less revenue will be produced. (MacEwan and John 56) Marx’s Theory of Crisis A profit squeeze is defined as the reduction in earnings which is caused by bad business climate, rising costs and increased competition. Capital accumulation might pull they demand for labor power and raising wages. The rate of profits will be hurt when wages go higher leading to recession. In the crisis of realization there is the contradiction in the capitalist mode of the entire production process and also the laborers ac ting as the buyers of various commodities which are quite important to the market. The capitalist society tends to keep them down to some minimum price though as sellers of their own commodity-labor power. Profit squeeze theory is more preferred since recession and poor performing business will likely occur when there is low profit. Poor performing business climate will result in low revenue and therefore low profit; this will result in low capital formation and therefore squeezing the profit and low standards of living. According to Marx, society is comprised of the bourgeoisie and the proletariats. This leads to the existence of two different classes in the society. To him this is what leads to the inequality in the society. With the inequality, wealthy and the power to purchase will be in the hands of a few rich people in the society. Low spending among other factors will result into recession and poor performances of various businesses in the economy. In the analysis of Marx all value derives from various labor times which are necessary for the production of goods. Therefore all the value derives exclusively from the workers efforts; later, the profits which come from the seized workers. The argument of Marx is that through class the capitalists will create demand through paying their workers and therefore Say’s claim that is the supply that creates demand. Aggregate Supply Function This is delineated as the total supply of goods and services produced in an economy at some specific overall price level in some period of time. The curve describes relationship between price level of and total output that the firms are willing to provide. When the supply of goods is limited then it means that less people will be employed in the firms. Aggregate Demand Function This Is defined as the total amount of goods and services which are demanded in the economy at some given overall price level and a given period of time. When there is less demand in the economy, production of goods and services will come down. Effective Demand This is defined as the level of demand representing a real intention to purchase by people within a means to pay. When the effective demand is low then the level of unemployed people will increase. Rate of New Investment (Or Investment Demand) This is delineated as the level of injections in the economy; the amount of money which is invested in the economy. When the rate of investment is high, many firms will be in a position to create jobs in the economy. When the rate of investment is low it means that there will be low capital formation and therefore less number of people will be in a position to get jobs. Marginal propensity to consume This is defined as the proportion of Income that is converted into consumption. When the Marginal propensity to consume is high it means the marginal propensity to save is low and the vice versa. Keynes also state that savings are equivalent to investment In an economy. When the marginal propensity to consume is high then it means that the ability to invest in the economy will see an upsurge. This will result in the creation of jobs in the economy. Marginal Efficiency of Capital The marginal efficiency of capital is the rate of discount which is usually equates the price of a given price of a specific capital asset. When the rate is high then unemployment will reduce. (MacEwan and John 93) The major importance of the distribution of income to Key it helps in the explanation of unemployment in the economy. Poor distribution indicates high level of unemployment in that specific class. When there is unequal distribution of resources in the economy then it means that the level of dependency will go high, resulting into the level of unemployment going higher. (Rajan 78) Keynesian disagreed with the belief that supply in the economy creates demand. He instead argued that the purchasing lower in the economy is what leads to an upsurge in the value of goods which are being demanded. According to Keynes recession is caused as a result of decline in the Gross Domestic Product. This results from the slowdown in various activities in the economy like reduction in the manufacturing and also the increased unemployment. The major suggestion that will be put forward by Keynes to help address recession is through ensuring that there is full productivity in the economy. There should be enhanced production and performance of various sectors in the economy. The Golden Age (1950’s – 1970’s) vs the Neoliberal Era (1980’s – 2007) Golden age in the economy was that period when there was no free economy. Most of the production was purely under control. Neo liberal economy is whereby the economy is free to operate without regulations in it. The n economy is free to operate with minimal interference. I would regard the neo liberal era as the very best approach as the economy should be given room to operate with minimal interference if there are. The government policies like taxation, wage rates, growth rates should be left to operate with eased without any interference in the economy. When the regulations are enhanced then a myriad of players will be discouraged from entering into the economy. Labor accord is defined as the control and regulations which were put to various labors in the economy. There was cohesion in the management of the labor. This ended as there were a myriad riots and chaos in the economy. In the neoliberal area, there was upsurge in the number of banks in the economy as compared to the golden age. (Rajan 113) Inequality was a major enhanced by the increased number of capitalist in the economy. Work Cited MacEwan, Arthur, and John A. Miller. Economic collapse, economic change: getting to the roots of the crisis. Armonk, N.Y.: M.E. Sharpe, 2011. Print. Rajan, Raghuram. Fault lines: how hidden fractures still threaten the world economy. Princeton: Princeton University Press, 2010. Print. Say’s Law Coursework