March 16th, 2007
Islamic Banks … Are they really Islamic?
We all have this idea that Islamic banks are Islamic! but the Financial Times says they are not??
Why only 5% of their operations are Islamic? why not 100%? and what are the roles of the Islamic banks in our society?
Listen to our podcast this week and let us know what you think
March 17th, 2007 at 9:29 am
good job
really good episode
af7amtni !!!!!
ma3lomat ydeeda wallah 3ala islamic banks
??? ????? ” ??? ????? ??????? ” .. ????? ???? ???? ????? ???? ?????? ????? ???? ?????? ???? ????? ????? ????? .. ??? ????? 250000 ????? .. ??? ???????? ???? ?????? ???????? ???? ???? ???? ?????? ??? 6 ???? .. ??? ????? ????????? ??????? ” ??? ??? ????? .. ??????? ????????? ???? ?????? ?? ?????? ??????? ?????
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March 17th, 2007 at 9:43 am
smile-q8: Thank you for the comment and welcome aboard. Financing for small projects is always difficult here in Kuwait because most of the investors don’t believe in them. My suggestion to your husband and friends is never give up and let them think of other possible ways to make their project possible. Cheers.
March 17th, 2007 at 10:27 am
Dr.BoRashid
… mashalah 3alaick o y36ek el 3afya .. walah kalaaaaaaaaam kebeeer hatha o 9igggg ma3lomat new 3an el islamic banks ..
ana personally i dont deal with any of the islamic banks . but according to what you said in the episode you prooved the point ina its like a Big joke ?! .. shlon el bank egom o ynja7 etha ohwa mafeh fawa2ed o mafeh like benift ..? so they made it like * wain ethnik ya jo7a * way .. and they called it moraba7a to like avoide saying the bad word * not really bad * and to fool others by it … did i get it right ?
e9ara7a Borashid ana sema3t el episode 3 times .. its soo nice o full of new information … at least for me its new and shocking ..
Good job Dr.Borashid .. walah you did a great job and its one amazing episode *flying hugs to you *
Ali .. what’s wrong ?.. its ‘7al emsa3ad and Dr.borashid
say it three times
‘7ali emsa3ad o drborashed
‘7ali emsa3ad o drborashed ..
‘7ali borashed o drmsa3ad :PPpP
good job and keep it up ..
alaah ewafegkom fe 6a3ta amen
March 17th, 2007 at 11:07 am
Bedoor: As always thank you for the comment although Ali is throwing a party tonight because you came second in our comment list. Now about the topic, I encourage the listeners to do some more research on the topic and let me know if we missed anything. As for 7`ali Musaed Dr. Bo Rashid part….. I leave it for you to decide
March 17th, 2007 at 12:44 pm
Dr Borashed : i was supposed to be first .. when i visited the site today there were non .. but as i said i listened to the episode 3 times just to not miss anything :’/ .. hehehe LOL at the party part
sure i’ll let you know if i had questions ..:))
thanks again
March 17th, 2007 at 12:48 pm
Bedoor: Don’t you think Ali is smile-q8 ?????? just kidding. Cheers…
March 17th, 2007 at 4:08 pm
????????? ??????????? ???????? ??? ?????????? ?????? ????? ??????? ??????? ????????????? ???????????? ???? ???????? ?????? ??????????? ???????? ???????? ????????? ?????? ???????? ????????? ?????? ????????? ????????? ???????? ????? ?????? ?????????? ???? ???????? ?????????? ?????? ??? ?????? ?????????? ????? ?????? ?????? ????? ????????????? ????????? ???????? ???? ?????? ?????????? {275}
???????? ?????? ????????? ????????? ???????????? ???????? ??? ??????? ????? ???????? ??????? {276}
(albaqara)
“aqsad elejara to3adel etha ebtakheth nafs elmablagh min bank ghair islami” - Dr.Bo rashid
i would like to point one thing out, say i want to buy a car thats 6000Kd, i go to a bank and take out a loan, oo aredlum el loan 9000kd, thats 3000kd reba. thats 7aram
i go to an islamic bank and say i want a car for 6000kd, they buy the car, and sell it to me for 9000kd aredha aq9sad, they have 3000kd profit. Thats bee3 o shera that is NOT 7aram
although they sound the same like you pointed out, they are not like the ayya points out.
that being said, i think everyone should take your advice and investegate before doing anything law hamathum ena its done in the rite way
o ya36eekum el3afya 3ala hal episode, very informative
March 17th, 2007 at 5:56 pm
eshda3wa: Thank you for the comment. We would love to get more from our listeners like yours. I think the reason why we have these episodes and others in our Deera Chat family shows (Deera, Dinar & Movie) is for our listeners to interact and let us know what they think too. Islamic banks and other financial institutes should be encouraged to deal with provided they stick to the rules and teaching of Islam. I personally would like to see our Islamic banks to be more honest and bring out all the facts that most of us don’t know about. If they really control US$ 300 B then we should have much better lives, but unfortunately, this is not reflected to the way most Muslims live. Again thanks for the comments and hope to hear more…..
March 18th, 2007 at 5:16 am
Thanks so much for another v.interesting topic! Ya36eekom il 3afya and inshallah u keep it always as fascinating
Now to the point: I read the article by M. Salim and, with all due respect, I don’t feel that he himself has put forward a valid criticism. His critique is mainly that the amount those banks charge is close in value to the interest rates. DUH! Just because it’s an Islamic bank doesn’t negate its right to come up with a source of income/profit. As Shda3wa said, whether it’s an equal amount or not, technically it’s not interest.
Anyway, on ras el mal el mokha6er or venture capital, I don’t think murabaha is a good mechanism for it, since it has 2 (maybe more) built-in risks for the bank: the bank must purchase the asset, so if the business goes bust, it will be stuck trying to divest. ALso, it can’t raise payments if they are late– which may be fine for a car but not for a whole business venture or long-term financing.
What some institutions use these days is this thing called “istithna” or deferred delivery sale. So basically the bank agrees to execute a project for the customer, then it may delegate back some roles to the customer (e.g. hiring a manufacturer or contractor) and payments are made directly to the sub-contractor of the project.. Then the customer repays the bank on a deferred basis (monthly payments or so).. ya3ni it’s similar to work-in-process financing for capital projects, or progressive financing, except again it’s not an interest but a “monthly fee”
Of course that all seems like just a change of names, but again technically, no one can prove it violated Islam in any way.. it’s quite creative actually– although personally I wouldn’t use an Islamic bank (too loopy for me!)
& sorry 6awwalt 3alaikom!
March 18th, 2007 at 3:47 pm
LuLu: As always very well researched comment, we really appreciate that. I can see your point of view and must admit that I agree with you in some points. Now let me tell you a story about our good junk food friend Mr. McDonald’s. Almost a year ago, health watchers in Australia and USA attacked Mr. McDonald’s for his junk food unhealthy menu that only adds to our body fat and cholesterol. So the top management decided to come clean and do two gusty moves: 1- Introduce a healthy menu that even Jenny Craig & Dr. Hussain Dashti and his Atkins program couldn’t provide, and 2- Posted the ingredients of the entire menu on the entry door of each branch they have in USA and Australia and maybe worldwide so people see how healthy they are. Now the moral of the story is that all we want is for top management in major Islamic banks and institutes to follow the footsteps of Mr. McDonald’s and come clean. As we mentioned in the episode, we are no expert in Islamic Laws of finance and banking, we would love to have more and more of these institutes worldwide, yet at the same time let them explain to us how Islamic they are. All we get is some signatures from a mufti and maybe his holy name!!! We are living in an age of information sharing and people nowadays want to have the truth and nothing but the truth. We hope to have honesty as our number one principle in all of our relationships; business or no business.
March 18th, 2007 at 5:23 pm
Well.. I like honesty too. Except honsety and controlling people/sucking their money in the name of religion don’t really go together.. (ops)
TC, LuL.
March 18th, 2007 at 5:30 pm
LuLu: My point exactly and that’s why we need some clarifications.
March 19th, 2007 at 5:34 pm
Mashallah,, 40% 9ij ben qosen ( ) .. hehehe,,
ilmaw’6oo3 wayed 7iloo ilbank eslamy,, o wayd as’al 3anah,, bs malget nas qualified to answer, gawab mogne3.. btw good example for the listeners:)
March 19th, 2007 at 6:24 pm
Ebrahim: Welcome abroad to our Dinar Chat blog. We are glad you liked the episode and hope you listen to the rest. You may ask anything related to finance and business and we will do our best to answer it or maybe talk about it. Cheers and thanks.
March 28th, 2007 at 11:24 pm
[...] Click here to listen to the episode and comment [...]
June 17th, 2007 at 11:19 am
Hi, it is an interesting topic to talk about, since I have just entered this field. I got to this site by coincedence, when I was searching for an islamic finance topic to talk about in a course project I’m taking.
I found this title very interesting and I hope that I can reference my project with what you published..
Is it possible?
and thanks a lot for the termendos efforts you are making to make people know the truth.