Commentary

World of WealthCraft: Using a virtual hand to nurture Islamic finance growth

The Big Money suggests using  “massive, multiplayer, online role-playing games like World of Warcraft and Second Life….for studying economic behavior and testing economic-policy theories”. This would be interesting to see in Islamic finance. I don’t know of anyone that has attempted similar except for Dr. Sami al-Suwailem in his paper “Islamic Economics in a Chaotic …

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Governing Jurisdiction – The litmus test of “real” Islamic Finance

While reviewing several cases of defaults, disputes, and disruptions in Islamic Finance deals that have made the press, I noticed that almost every case that has been litigated on has been in a western common law court (UK-USA). Thinking out loud, I wonder if this is the litmus test for “real” Islamic Finance? Not that …

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Rent to Own Leases (Ijara wa iqtina’): Fringe Banking & Financial Distress

Legal Theory Blog posts about Regulating on the Fringe: Reexamining the Link Between Fringe Banking and Financial Distress (Indiana Law Journal, Forthcoming) on SSRN. I’m interested in the guarantee mentioned below. Does Islamic Finance allow for a guaranteed return, even if done through Lease (Ijara)? Because Islamic Finance is not contained by one single regulatory …

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A possible “Islamic” alternative to Microlending

Muhammad Yunus having won the Nobel prize for economics, Microfinance has become a hot item for many seeking to make money and “lend” a helping hand. Much criticism has surrounded Microfinance, from Muslims and Non-Muslims alike, questioning the ethics and viability of the practice. Objections generally center on the fact that it is an interest …

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Insurance Regulation

Classically, scholars categorized contracts as being from one of three types. Commutative exchange (Mu’awaDat معاوضات) – Involving the voluntary exchange of good, services, and/or both for the purpose of trade. Includes: cash sales, bartering, and currency exchange. Charitable exchange (Tabaru’at تبرعات) – Involving the voluntary not-for-profit exchange of good, services, and/or both out of the …

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