Inevitable but ............ by Abdel Karim Joubaili, Financial Analyst, NBK Capital - 13-Oct-08
In a perfect scenario, Islamic finance should easily classify as the perfect alternative to the failing capitalist system. I, personally, advocate the dominance of Islamic finance on global economic and financial affairs. Having said that, I have to acknowledge a number of "loop-holes" in Islamic finance that might prevent it from achieving such recognition, at least in the short run.
First and foremost, Islamic finance is still in its infancy stage, and Islamic financial instruments are yet to evolve in order to staisfy the ever increasing sophisticated investors globally. It is also crucial that there is a solid understanding of Islamic finance and financial instruments by the investors, policy makers, and financial professionals. There have to exist a cohesive set of rules and regulations that are agreed upon by Islamic clerics and financial think tanks, which will pave the way for the advancement of Islamic finance.
A quick evaluation of history, communism and capitalism would not have evolved have there been political unrest in the countries that adopted them, hence, i also believe that Islamic countries should exhibit political and economic stability in order to foster the progression of Islamic finance onto the forefront of international financial affairs.
The above-mentioned reasons are not deterrant in anyway, they simply imply a number of vital steps that are pivotal for Islamic finance to florish.
In the recent past, Islamic finance has been cheered in the international community (when the capitalist system was still void of errors), where it grew at 15% pa, as well as Islamic financial assets. The UK rushed to accept Islamic finance within its financial system, and furthermore, Islamic finance went on to reach Latin America. So, the label "Islam" has not been an impediment for the recognition of Islamic financial system, it has always been the need to address the above issues. To that end, Islamic finance will inevitably dominate as a global economic and financial system, BUT work needs to be done first in preperation. [Report Abuse | Email to a Friend | Reply to this Comment]

Prudent economics by VPillar Scribe, blogger, 5pillar.wordpress - 12-Oct-08
In an economic “system based on usury and paper and not on goods traded on the market” the borrower, (the average Westerner), is in a state of crisis from the signing of the contract. The primary reason why many Western experts oppose this, is not because of the name Islam, but because Muslims are amongst the primary whistle-blowers about the inevitability of unjust economic enslavement of the average person.
Those who stand to benefit in a system that practices usury/interest are amongst the primary public-relations representative and co-conspirators of establishing a state of Islamophobia.
Take away the label of Islam, and deal with pure mathematics, logic, social conscience and justice — and the Islamic economic system is no doubt superior to capitalism and communism - put together.
Like the term ‘democracy,’ ‘capitalism’ is purported as great, but in practice is not even applied by the people who champion the cause. 5pillar.wordpress.com [Report Abuse | Email to a Friend | Reply to this Comment]