Islamic economy Essay Example | Topics and Well Written Essays - 1000 words

Muslim economy - Essay ExampleThroughout the Muslim nations, the comprehension was nothing was lawful about banks (Thomas 4). The youthful setting of Moslem banking began in the 1960s in Egypt nevertheless, this attempt was unfruitful and limited to certain contemporary setting. There were two events that triggered and spread the development of Moslem economy. The first event was the OPEC oil crisis as it was referred to in the west however, unlike in the west, quotas and increased oil prices resulted in increased GDP per capita in the oil-producing Islamic nations. This resulted in increase of gross savings, consumption and most significantly demand for a banking system fit with Islamic regulations for devout Muslims. The second trigger was the Islamic revolution in Iran because it inspired the Iranian government to require a banking system that complies with Islamic shariaa laws (Thomas 55). Recognition of non-western economic thought remedied the habitual ignorance in the w est regarding contribution of Arab-Muslim thinkers in economics. Islamic economists criticized the assumptions upon which conventional economics based and their policies. Islam emphasizes communal responsibility and harmony of the Muslim nations or Muslim community. Islamic economists associated utilitarian to hedonism, which they considered as a replacement of the moral values. Unlike Marxist approach to remuneration that considers labor as a source of value Islamic economists identify the legitimacy of rental income together with profits. With inbuilt deepness and breadth of Islamic commercial law, current jurists find realistic and hypothetical jurisprudence upon which to pee-pee solution when confronted with disputes of the contemporary marketplace. The initial few decades of modern Islamic economy was a period of revival and the last decade has been an era of significant innovation. red-brick Muslim jurist provide shariaa-compliant solutions to the expanding spectrum of needs . Toward the end of the 1980s, the situation began to change with Islamic and banking and economy growing beyond the expectations of Islamic economy supporters. Since then, Islamic finance has become a growth industry with several multinational banks and asset management companies taking interest in the development of Islamic economy (Thomas 5). indoors the banking and finance industry significant developments began with the significant reason being the progress made by Muslim jurisprudence to, understanding the modern business of vocation and applying shariaa principles. An additional reason was the development of facilities by shariaa boards with normal contracts allowing Islamic economies to be at ease with the novel organization. The replacement of Islamic commercial energy led to the development of cooperation and helpful interactions between Muslims and people with different religious backgrounds. Acceptance of shariaa in Islamic economies does not lead to rejection of tool s necessary for economic analysis rather, it implies evaluation of economic policy with moral perspective according to religious teachings (Thomas 8). Apart from oil and gas-rich states, legion(predicate) Muslim economies are either low or middle-income developing nations, where often