Saturday, May 20, 2006

'Islamic Finance Equally Viable for Non-Muslims'

It helps to hear these sort of statements from senior positions.

It helps because it paves the way for better understanding what Islamic Finance is all about.

In one of my experiences with an individual who saw the Islamic Finance industry merely as an obsession of Muslims with their belief when, according to him there was nothing ethically wrong with a large number of conventional finance solutions, I had to resort to explain 'Zakah' as a global fund created to abolish poverty from the world, which would require all individuals with annual savings of above a ceratin threshold to contribute 2.5% of their excess savings. Obviously, I wasn't trying to explain Zakah entirely; I only wanted to give a vague idea.

I don't know what his background or qualifications were, but he did some quick calculations and startled me by saying that if successful, this scheme could end world poverty in just 6.5 years.

So we agreed that while Islamic Economics also dealt with ethical concerns in individual transactions of the lender and borrower; the prime quality of this system was the perfectly balanced distribution of wealth among all humans.

Obviously, we only agreed on the obvious.