Muslims and money

Islamic law doesn't just govern personal morals but extends to money matters. In these days of multicultural Britain banks and building societies are cashing in on Muslim requirements for Shari'a compliant loans, savings, and mortgages. Islamic finance courses are also big business for the business schools. In August NASA will even be taking part in one, perhaps a follow up to the Muslims in Space conference last year?

Here's a list of things you may not have known about banking Islamic style...

1. Interest free loans Earning interest on loans is known as usury or "riba" and is forbidden in Islam.
2. Double dealing To get round this, Muslims use a system know as the 'double sale' to get money from their investments and for banks to be able to earn interest on loans.
3. How it works You want to buy a car from your friend, but you can't afford it. Ask your bank to buy it for £9000. At the same time agree to buy the car from the bank for £9600 in monthly installments over three years. The two sales are almost simultaneous, but the bank owns the car for a brief period of time, so everything is halal, (alright).
4. Paying the mortgage Because of the prohibition on interest, Muslims use special Islamic Mortgages to allow them to buy houses in accordance with Shari'a. The market for Shari'a compliant mortgages in Britain is in excess of £7billion.
5. Credit Dubai Islamic Bank offers Islamic Credit Cards for use in the Islamic world but they are not yet available in the UK.

Comments

[Paul Owen]

I love the notion of Islamic banking. God is great and omnipotent and omniscient apparently but he can the wool pulled over his eyes by a bit of accountancy sleight of hand. It's amazing how uncompromising people can be about the morality of others but when it comes to them getting a mortgage or interest on their savings they'll find a way around God's law. Hypocrisy!

[Andrew Luscombe]

Abother example of the hypocrysy of religion, especially Islam. Forbidden to pay, and yet, through a series of I assume legal moves actually pay interest? I assume this is the same for mortgages, in which case I urge all new home buyers to convert to islam if only for an interest free mortgage! But pf course you do pay interest, or someone else does and you pay them, thus getting round your relgions strict no interest policy, laughable

[Tikhon]

For those who may not understand the above Commenters' quite justifiable remarks, I suggest this short, but detailed article which will explain that, contrary to the popular misconception that islamic banking, by following sharia law, does not charge interest, islamic banks do most certainly charge interest and at rates which usually exceed normal banking rates.

More significantly, the article also explores the link between islamic banking and the funding of terrorism

"Islamic Banking in Britain"
Helena Christofi
12 February 2007

www.brusselsjournal.com/node/1898/print

There is also:

"The Muslim Brotherhood 'Project'"
Patrick Poole
11 May 2006

www.frontpagemag.com/Articles/ReadArticle.asp?ID=22415

[anticant]

The usual humbug.