Nobody downloaded yet

In countries that do not have an Islamic Legal system, disputes related to Islamic financial transactions can lead to outcomes t - Research Paper Example

Comments (0) Cite this document
Name: Institution: Course: Tutor: Date: Introduction Understanding the nature of law requires legal reasoning, understanding of the legal institutions of a given region or country and digging deeper to understand the legal systems; the civil law, common law and religious laws…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
In countries that do not have an Islamic Legal system, disputes related to Islamic financial transactions can lead to outcomes t
Read TextPreview

Extract of sample "In countries that do not have an Islamic Legal system, disputes related to Islamic financial transactions can lead to outcomes t"

Download file to see previous pages Sharia law, as a moral code and religious law for Muslims; addresses various perspectives of human activities such as economics, crimes and politics, as addressed by secular laws, and it seeks to differentiate intentions, interactions and decisions between those that are good and those that are bad (MacEoin and Green, 2). Just like the secular laws, Sharia code of ethics touch on various interactions of the human race giving the prospects and punitive aspects whenever the codes are breached, though from the secular observation of Sharia being a religious law, it has provisions that make the laws holistic in guiding and governing human interactions making it fall under and satisfy individual legal systems. Economically, just like Christian finance, Sharia economics presents the economic systems that conform to the Islamic scriptures and traditions; behavioral norms and foundations, Zakat tax as the basis of Islamic fiscal policy and other economic provisions that holistically covers the economic and finance sector (Bonner, 397). Though close and similar to the secular and other traditional laws, in countries that there is no Islamic Legal System, disputes related to Islamic Financial Transactions can lead to outcomes that contradict Sharia Principles. Sharia principles like the secular laws have provisions that govern the Islamic Investment Funds; where investors pool their surplus money for the purpose of its investments to earn profits, Halal, but governed and in strict conformity with Sharia laws, and the subscribers receive certification entitling their pro- rated profits accrued from the fund. The Islamic banking phenomenon is based on sector of profitable for investor that represents growth for positive reputation and responsible management, and by fueling growth that is necessitated by increasing demand stimulated by rising number of Muslims in common law and civil law countries (Imady, Omar and Hans, pp.4-6). The conflict is bound to occur especially on the business ethics provided for by Sharia laws in relation to these countries’ provisions whereby the Islamic economic systems are neither socialists nor capitalist, conflicting interests of natives and the economic outlook of these countries. For instance, Sharia provides for Zakat; a practice of charitable giving by Muslims based on the accumulated wealth, and obligatory to all that are able to do so, contravenes with capitalists economies where in most cases taxation is mandatory to all irrespective of economic background and/ or social class. This would further lead to conflicts especially if certain sections of Sharia have to be incorporated in these countries’ laws such as contractual agreements and financial transactions due to different expectations from both sides and the conflict to the national interests. Capitalist societies/ economies rely on creation of value which can be tangible, for physical goods and/ or intangible for services; which involves transactions that mutually benefit the parties, the consumer gets the added value to the product/ service, and the retailer or the producer gets the entrepreneurial profits and royalties which may include interest on shares. To the contrary, the Sharia provisions for legal entity or a business that is Halal as a company that does not borrow money on interest and/or keeps their surplus in interest bearing accounts; and that one being a shareholder of such a company becomes a Sharik, agent for the partners in the matters of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“In countries that do not have an Islamic Legal system, disputes Research Paper”, n.d.)
In countries that do not have an Islamic Legal system, disputes Research Paper. Retrieved from
(In Countries That Do Not Have an Islamic Legal System, Disputes Research Paper)
In Countries That Do Not Have an Islamic Legal System, Disputes Research Paper.
“In Countries That Do Not Have an Islamic Legal System, Disputes Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF In countries that do not have an Islamic Legal system, disputes related to Islamic financial transactions can lead to outcomes t

Islamic economy

...and division of labor were essential in wealth creation. Deliberations of sharia’a boards involved real issues like peoples’ money, since the establishment of Islamic states and businesses attracted input from average Muslim consumers and high net worth and institutional clients. For Muslims, Islamic economies allow them the opportunity to transact and invest in ways that leave the conscience of the Muslims clear. Moreover, development of Islamic economies is a great relief to Muslims across the world; even though, “reformers” show disdain for the entire process (Thomas 96). Part of the disdain is attributed to the missteps and mistakes taken by the...
4 Pages(1000 words)Essay

Islamic Rules

...individuals in the religion of Islam. The second example is an example set by Prophet Muhammad in Sunnah. The sharia law has official status where leaders have different responsibilities basing on their positions of leadership. Shariah has been divided into five main branches which are: Crime and chastisement Economic system Family relations External relations and other relations as well. Bequest and disposal of possessions. There are various rules and regulations that are supposed to be followed by the Muslims in which if not. They are punishable by this same law. This gives a clear impression that they have to...
8 Pages(2000 words)Essay

Islamic Finance

...for transaction needs. Islamic banks derive these rules from the Holy Quran, the Sunnah and from Islamic scholars. In order to observe Islamic rules; all Islamic Banks usually designate a Shariah Committee consisted of experts, advisors and scholars (WARDE, 2010). Shariah principles can be divided into four main classes as fee based banking, profit and loss sharing, subsidiary principles and free services (YATIM & NASIR, 2007). These classifications further contain sub principles. Among all countries Islamic banks in United Arab Emirates have least principles implemented while...
6 Pages(1500 words)Essay

Islamic banking system study

...; however, because of the close monitoring of the practices of the banks based on the Islamic banking system the risk related with the funds invested on these bank’s financial products is limited. On the other hand, the Islamic banking system is not restrictive – regarding the potential development of its schemes; an indicative example is the introduction of ‘UKs first Islamic fixed rate mortgage with the aim of offering ethical property finance in direct competition with conventional lenders’ (Property Wire, 2009). It is assumed that the Islamic banking products can be updated and...
12 Pages(3000 words)Essay

Islamic legal system

...-Caliphate I. Ahmed in the article authored on ‘The Structure of an Islamic Caliphate’ observe that due to the discriminatory practices of the Islamic Law, Sharia the state legal system of the Islamic countries have diverted from its realm. In fact, the author states that the state legal system has constructed a separate apex body in contrast to the Sharia law. 38. “Religious Watch”, (2010). Retrieved on October 31, 2010 from: The document of ‘Religious Watch’ states that higher amount of media influence has led to the...
6 Pages(1500 words)Research Paper


...Islam Islam is the religious faith of Muslims. It is based on religious system and words which originated from Prophet Muhammad. Its basic principle is absolute submission to Allah. There are many misconceptions about this religion. Among them include Muslims are terrorists, violent, and extremists (Mussarat 11); Islam oppresses women; those who subscribe to the faith worship a God different from other religions; Islam are not tolerant of other faiths; all Muslims are Arabs; the Nation of Islam comprise of only Muslim group; All men in Islam marry four wives; Muslims are backward and barbaric people, and the founder of...
1 Pages(250 words)Assignment

Islamic Accounting & Financial Reporting numbers of incidents and thefts are growing in all parts of the world but these threats are more severe in the case of Islamic countries where terrorism and unlawfulness is rising all the time (Lapidus, 1996). The whole idea behind Islamic Takaful insurance is to legalize and Islamize the notion of insurance (Maysami & Williams, 2006). The conceptual framework of Takaful insurance is not a new one because Prophet Mohammad had implemented it fourteen centuries ago. However, the featured concept is based on mutual cooperation of all the policyholders (Wahab, Lewis, & Hassan, 2007). The funds are gathered and then deserving policyholder is paid by all...
10 Pages(2500 words)Assignment

Islamic accounting and financial reporting

...among others (Vejzagic, 2011). The financial performance and growth of the banking institutions have been observed to be developed in majority of Islamic countries across the world. However, in certain scenarios, the accounting principles in most of the Islamic countries have also experienced major complexities due to their dissimilarities prevailing within the globally accepted accounting standards (Yaya, 2004). In relation to conventional insurance principle, the primary objective of Shari’ah is generally identified to be a concept of survival of individuals. With regard to this particular notion, the...
8 Pages(2000 words)Essay

Islamic accounting and financial reporting

...was enacted to harmonize the universal accounting procedures and processes into a harmonized system. This study will cover the implementation of the IFRS by the country of Malaysia. The paper will have a candid review of the adoption of the IFRS by Malaysia, and the conflicts that this move presents to the application of the AAOIFI standards. As a start off, the paper evaluates the financial and accounting system in Malaysia. AAOFIFI and IFRS are then evaluated with respect to their components, procedures of application and treatment of various financial transactions. The paper then compares and contrast the accounting...
9 Pages(2250 words)Essay

Islamic accounting & Financial reporting assignment

...with the customer incase the lease does not become profitable for the customer. Conclusion The AAOIFI standards are accounting standards developed for Islamic firms that want to be sharia compliant. However, the problem is that the IFRS standards do not give an exception to these firms. If a firm that wishes to be sharia compliant is registered or headquarter in a country that recognizes the IFRS standards, it will still be needed to report its accounts with the IFRS standards. Due to the small differences with regard hot the AAOIFI treats accounts and the way the transaction are done in AAOIFI standards, this can bring a small difference with regard to...
10 Pages(2500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic In countries that do not have an Islamic Legal system, disputes related to Islamic financial transactions can lead to outcomes t for FREE!

Contact Us