Ismlamic banking theory verses practice. Case study of Iran Pakistan and UK - Essay Example

Some of the Quranic verses (Yusuf Ali, 2000) regarding these aspects have been mentioned below to elaborate the need and intimidation towards the Islamic financial system. “To those of weak understanding make not over your property, which God hath made a means of support for you.…?” (Yusuf Ali, 4:5, 2000). Private ownership is affirmed, but also, viewed as a trust, “Believe in God and His Apostle, and spend (in charity) out of the substance whereof He has made you Heirs…” (Yusuf Ali, 57:7, 2000).

Islam encourages enterprise or efforts to create wealth, which is characterized as God’s bounty, “And when the Prayer is finished, then may ye disperse through the land and seek the Bounty of God…” (Yusuf Ali, 62:10, 2000). Muslims are obligated to fulfill contracts and keep their promises, “O ye who believe! Fulfill all obligations..” (Yusuf Ali, 5:1, 2000). “…And fulfill (every) engagement, for (every) engagement will be enquired into (on the Day of Reckoning)…” (Yusuf Ali, 17:34, 2000).

All exchange should be made with the willing consent of the parties concerned, “O ye who believe! Eat up not your property among yourselves in vanities: but let there be amongst you traffic and trade by mutual good-will.…” (Yusuf Ali, 4:29, 2000). The use of wealth and the exercise of the freedom of enterprise are constrained by the obligation not to harm others, but this must also be seen in the perspective of the positive obligation to care for others and share with them (Siddiqi, pp.

11-19, 2001). This is symbolized by the well-known duty to pay the zakat or poor tax. However, that is not all: the important thing is the spirit of cooperative, helpful behaviour as mandated by the Islamic view of life as a test, “He who created Death and Life, that He may try which of you is best in deed” (Yusuf Ali, 67:2, 2000). These texts from the Quran (Yusuf Ali, pp. 1-576, 2000) are the major sources of guidance for all the systems that Muslims