Slide 1 : Week #1 – Introduction of the 10 Week Course
***Please go to IslamPolicy.com and Download Syllabus if you haven’t done so already
Islamic Renaissance : Islamic Renaissance The Prophet (peace and blessings be upon him) said, “Do not do what the Jews did in order to technically legalize Allah’s prohibitions by flimsy excuses”
~(Ibn Al-Qayyim in Ighathat Al-Lahfan) يَا أَيُّهَا الَّذِينَ آمَنُواْ اتَّقُواْ اللّهَ وَذَرُواْ مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ
فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مِّنَ اللّهِ وَرَسُول
O you who have attained to faith! Remain conscious of God. and give up all remaining gains from interest, if you are truly believers; for if you do it not, then know that you are at war with God and His Apostle.
Shariah Compliant Finance Industry: A Growing Market : Shariah Compliant Finance Industry: A Growing Market Over the past few years Islamic Finance has received increasing attention from the global financial industry, not least because of the remarkable growth Sharia compliant assets have experienced. Since 1975, assets have grown by 15 - 20% per annum, whilst in 2008, the value of Sharia compliant assets grew by 28.6%.
The value of the Islamic Finance market is approximately USD $1 trillion (2010). Whilst this value is small when compared to global market capitalization (Islamic assets represent approximately 1 - 2% of global assets), the growth rate is impressive and expected to continue.
These assets are predominantly located amongst banks in the Middle East and Malaysia.
Shariah Compliant Industry ($1 trillion) in Relative terms: : Shariah Compliant Industry ($1 trillion) in Relative terms: HSBC $2.418 trillion, Goldman Sachs $911 billion in assets
Total assets of UBS of Switzerland in 2005 = 1.53 trillion, Mizuho Financial Group of Japan $1.5 trillion, and Citigroup’s assets as per 31 March 2008 reached $2.2 trillion
One Year GDP of Gulf Cooperation Council countries in 2008= 1.037 trillion
Abu Dhabi Investment Authority (one of the Sovereign Wealth Fund) alone = 600 billion
Taking the growth rate of Citigroup and other major banks we see a similar order of magnitude as the 15 per cent often quoted for the Islamic finance industry
From 1978-2008 in the United States cumulative debt of the Financial Industry grew from $3 trillion to $36 trillion
Slide 5 : A Brief Background of Islamic Economics:
Slide 6 : Economics of Petrodollar Recycling
Slide 7 : Dynamic Influences on the Shariah Compliant Industry
Slide 8 : Approach and Methodology of the Course
Discussion of Syllabus
Question and Answer وَإِنَّهُ لِحُبِّ الْخَيْرِ لَشَدِيدٌ
And verily, he is violent in the love of wealth.” (Al-‘Aadiyaat 100:8)
Slide 9 : What is Shariah???
Slide 10 :
Slide 11 : In recent years, oil-exporting countries have experienced windfall gains with the rise in the price of oil. A look at how oil exporters “recycle” their revenues reveals that roughly half of the petrodollar windfall has gone to purchase foreign goods, especially from Europe and China, while the remainder has been invested in foreign assets. Although it is difficult to determine where the funds are first invested, the evidence suggests that the bulk are ending up, directly or indirectly, in the United States.