Wednesday, April 25, 2007

The Global Impact of Islamic Finance - News

The Global Impact of Islamic Finance - News:
"Hayes was a principal contributor to the Harvard Islamic Investment Study and the author of seven books, including Islamic Law and Finance.
Hayes, the first speaker of the panel, explained basic concepts and principles of Islamic Finance to the audience. Islamic Finance refers to a system of finance or banking that is consistent with Islamic law (Shariah) principles. His 'Islamic Finance 101' started with the guiding principles of the Prophet Mohammed, the historical founder of Islam: 'Be fair with all others,' and 'one party cannot exploit the misfortune of others.'

As a result, usury (the collection and payment of interest), in addition to any forms of speculation trading in financial risk is prohibited because it is considered gambling, which is also forbidden. Hayes pointed out that Islamic finance places emphasis on a philosophy of investing which closely resembles the idea of 'socially responsible investing"

No comments: