Islamic Banking and Interest

Translation by Imran Ashraf Usmani.

Discusses problems with prevalent insurance system and describes Takaful, its Islamic alternative.

There is unanimous agreement among Muslim jurists that riba is prohibited strictly by the texts of the Qur’an as well as by those of the Sunnah. When it comes to the identification of the transactions that would fall under the prohibition of riba, however, there is some disagreement among the scholars. Hopefully this book will enrich the debate about Islamic banking by raising new issues.

Causes and Remedies of the Recent Financial Crisis From an Islamic Perspective As the leading authority on modern Islamic finance in the world today, no one was better qualified to speak for Islam at the annual World Economic Forum following the global financial crisis in 2010. In his address, Mufti Taqi Usmani pointed out that the so-called crisis only came about when it knocked at the doors of the wealthy.' Otherwise, as Mufti Usmani astutely points out, the true crisis is ongoing and unless fundamental changes are made to the worlds economic system, that crisis will continue. In the pages of this slim volume, the reader will find a concise study of the fundamental flaws in the global economic system, and the eternal principles articulated by the Shariah of Islam that point to a solution. - Yusuf Talal DeLorenzo, Shariah Consultant to Global Financial Institutions Mufti Taqis paper, written in the context of global financial crisis, calls for universal change in our attitude toward the treatment of money and the role of financial system in our lives. His is a timely call for overhauling the economic system based on values and principles. A must read for all who are concerned about the current affairs of our financial system. - Nazim Ali, Director, Islamic Finance Project, Harvard Law School | Harvard University.

Includes detailed discussion about the definition of riba, commercial riba, riba in the pre-Islamic period, as well as its prohibition in Qur'an and Hadith.

Can Pakistan (or any Muslim state for that matter) enter into riba based financial transactions with foreign entities? Three petitions were brought up before the Shariat Bench of the Supreme Court of Pakistan in 1991. Justice Dr. Tanzilur Rehman wrote the judgment which is contained in this very valuable book. Unfortunately (but unsurprisingly) mysterious hands stopped the Judgment from being delivered. But the arguments contained here will be of great interest to students and scholars everywhere.