Islamic Finance: Difference between revisions

{{QualityScore|Lead=1|Structure=1|Content=2|Language=1|References=1}}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-Muslim countries. Less than 5% of all Muslims are living in Muslim countries which can be considered developed. The wealth of all these rich, developed Islamic countries depends largely on oil. Many Muslims living in developed countries live in Western non-Muslim countries. 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), 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. Sophisticated products are also rarely designed in Muslim nations  

Malaysia is the only Muslim-majority country with a significant electronic industry. 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.  

In some countries with a Muslim majority, such as Indonesia and Malaysia, minorities enjoy a significant influence on the national economy. Many Islamic governments are suppressing such minorities to keep limited their influence upon their national economies.

==''Haram'' (prohibited) institutions==

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 practices prohibited 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.

Nevertheless interest remains forbidden in many Islamic countries and many small or medium sized companies cannot find any investor to expand their business.   

There are also Islamic banks existing in many Muslim countries, however, many companies would prefer a western bank to fulfill their financial needs and stay independent from an investor who buys company shares - which is the alternative to interest commonly used in Islamic economies to secure investment/loans.  

==Economically detrimental realities==

World Statistics reveal that many Islamic countries face serious problems regarding education. Many Islamic countries suffer from considerably high rates for illiteracy, with little hope that the picture might change. High population growth rates make public education unaffordable.  

==Individual nations==

The struggling economy of Iran does not have enough refined petroleum and regular results in protests. The economy is controlled by religious foundations, and small and medium sized companies wield little influence. The private sector underdeveloped, and key industries under control of the Islamic government. Businesses not related to the oil industry experience little if any success in this environment.  

[[Category:Politics and Government]]