Islamic Finance: Difference between revisions

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Estimates about the worlds total Muslim population range between 1.2 and 1.6 Billion. Most Islamic countries are, on average, less developed than non-Muslimcountries. Less than 5% of all Muslims are living in Muslim countries which can be considered developed. However, the wealth of all these rich, developed Islamic countries depends largely on oil. Moreover, many Muslims living in developed countries live in Western non-Muslim countries. In fact, one-third of young Muslims in Kosovo (the most recently established Muslim State) are already looking to emigrate in search of fortune elsewhere (i.e. The West). This should not come as a surprise, with 73% of their young being unemployed.<ref>[http://www.ansamed.info/en/news/[email protected] Kosovo: young; 73% unemployed, one third prepared to emigrate]</ref>

Many Islamic economies depend on agriculture, raw materials or textile products, with little or no production of sophisticated products. There are almost no high tech products originating from an Islamic country.  

For example, Malaysia is the only Muslim-majority country with a significant electronic industry. However, most products produced in Malaysia derive from production facilities built by foreign manufacturers. Thus, capital and technology are imported from western or East Asian multinationals.  

==Haram Businesses==

Alcohol, pork and gambling are agreed upon to be forbidden under [[Islamic law]]. Similarly prohibited is the charging and collecting of interest.

Of the economic possibilities thus limited by Islamic law, the prohibition on interest is the most consequential, since all banking, financing and investing in the world´s economy depends on interest.

[[Islam]] traditionally prohibited interest since it feared of usury leading to debt-[[Qur'an, Hadith and Scholars:Slavery|slavery]] and other undesired social problems. However, modern laws increasingly prohibit and secure against debt-slavery, and it would appear that interest has a net-positive effect on the global economy today, as it enables every sort of loan.   

 

==Lack of Education in Islamic Countries==

 

 

 

 

In other cases, Islamic laws does not allow that even well educated woman work. In Saudi Arabia many women attend university, but they will never find a job because they are not desired to work.

Islamic societies (for example, in Saudi Arabia, with only slight changes taking place recently) are wasting the power of women.

*High qualified but not desired to work.

*Cannot drive.

*Cannot move or travel anywhere alone.

*They must be [[Hijab|veiled]].

==Discrimination against Non-Muslims==  

There are many difficulties for Non-Muslims in Muslim-Societies, including the [[Jizyah]] “poll tax” for dhimmi's:

In addition to endemic instability, this commonly discriminatory environment in many Muslim-Societies is not inviting for foreign investors.

==Mismanagement in Iran==

Struggling economy,

not enough refined petroleum and protests,

economy controlled by religious foundations

small and medium sized companies with little influence

private sector underdeveloped, key industries under control of the Islamic government, little success in developing of not oil related businesses.  

Due to dilapidated drilling rigs and pipelines, Iran can only produce 4.3 million barrels of oil/day out the 130 billion barrels of proven oil reserves.<ref>[http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/06/28/wiran228.xml Khamenei plays for high stakes],  ''The Guardian'', 28/06/2007</ref> Furthermore, Iran can refine only 40% of its oil consumption; it has to export crude oil and import refined oil for the other 60% of consumed oil.   

High unemployment rates—15% according to the Iranian government <ref>https://www.cia.gov/library/publications/the-world-factbook/geos/ir.html#Econ</ref>. Since population is very young, rate is expected to rise in the future. Many young Iranians want to emigrate<ref>[http://www.reuters.com/article/worldNews/idUSDAH23888120070323?pageNumber=2 Young Iranians dream of better life in the West], ''Reuters'', 23 March 2007</ref>.