Tun Musa Hitam, Chairman of the World Islamic Economic Forum (WIEF) Foundation and former Deputy Prime Minister of Malaysia on the WIEF’s most recent discussions
Some have compared the Arab Spring to the fall of the Berlin Wall, when Eastern Europe joined the rest of the world. Just as the collapse of communism recast Eastern Europe, both in political and business terms, so too can the Arab Spring serve as a wa...
Sharia-compliant banks are providing investment opportunities to a market in much need of innovative and ethical modes of transaction
Aljazira Capital is a Saudi Closed Joint Stock company operating under the regulatory supervision of the Capital Market Authority, specialising in the securities business and providing the services of dealing, underwriting, managing, arranging, advisory, ...
National Commercial Bank is Saudi Arabia’s oldest bank, and one of the strongest proponents of Sharia-compliant finance in the region
Global banking policy is not traditionally something closely linked with cultural attitudes; it has been allowed to roam free in the pursuit of growth and profit. Islamic banks, on the other hand, consider their cultural makeup, and the performance of ...
Renowned sharia scholar at hand to help growing industry prosper
Sheikh Hussein can discuss Islamic banking for hours; after all he has been instrumental in establishing it during over 50 years of writing and teaching. "Listen to me. You have to understand the basics of sharia, what's allowed and not allowed in Islam. ...
Nearly 40 years after it pioneered the concept, Dubai Islamic Bank continues to set the benchmark for the global Islamic finance industry
Dubai Islamic Bank (DIB) created history in 1975 when it became the first modern commercial Islamic bank in the world. Before this, customers had no choice but to use conventional banks for all their financial requirements. By incorporating Sharia princip...
If society is looking for a new kind of banking partner it need look no further than Al Baraka Bank, the first lender to be fully Sharia-compliant
Starting operations in 1992, Al Baraka Bank Lebanon became the first Islamic Bank in the country to work under the rules of Fiduciary Contract Law Number 520 – dated June 6, 1996 – in full compliance with Islamic Sharia. When the Lebanese Parliament d...
Islamic finance ‘could offer effective relief and direction’ on financial instruments to the rest of the world
The International Conference on Islamic Business was opened in Islamabad by Yaseen Anwar, Governor of the State Bank of Pakistan. The conference was held at the National Institute of Banking and Finance and lasted two days, during which time banking and b...
Islamic finance is a fast-growing phenomenon. As ambiguity continues to muddy traditional markets, Islamic law-compliant financial schemes and their risk sharing structure are progressively seen as the worthy alternative to traditional Western mechanism
Many believe that Islamic finance exemplifies the light at the end of the tunnel in this plethora of market instability. The state of the global economy and the European sovereign debt crisis has led copious Western investors to increasingly turn to the i...
Qatar International Islamic Bank’s continued search for excellence has progressed so much it has been recognised as a leader in its field
Qatar International Islamic Bank’s (QIIB) continual pursuit of excellence in servicing its customers through the sustained growth and development of its Sharia-compliant products, services and distribution channels, has been recognised by World Finance ...
150,000 people benefit from Jordan Islamic Bank’s SME loan services. The Islamic finance model is helping to address Jordan’s
unemployment and poverty issues, writes Lyndon Driver
Jordan Islamic Bank (JIB) was established in 1978, as a public shareholding limited company with the mandate of providing a range of banking services including corporate, personal, business and SME banking, financing and investment business operations in ...
Increasingly popular Halal products have become more and more appealing, offering well-considered and amiable rates
Islam forbids usury to the followers of the religion; from the Quran, “O ye who believe, keep your duty to Allah and relinquish what remains (due) from interest, if you are believers.” Therefore, for Muslims wanting to purchase property, a traditional...
The sector is tentatively re-establishing itself after
three confidence-sapping years
The GCC banking sector has emerged as a more positive sector, despite its ties to the real estate and investment sectors across the GCC. With the exception of Oman, the banking industry recovered from its two-year losing streak, aided by governments’...
Islamic financial institutions – such as the Muslim Arbitration Tribunal – and the Shariah law they ascribe to, are gaining more importance within international commerce
Shariah law is a code or concept that is important to adherents of Islam. Considered to be the laws of God that determine what is right in terms of both personal conduct and the way that businesses and governments operate, the underlying purpose is to ens...
The attraction of Sharia-compliant finance is largely in its ethos, writes Tessa Albrecht
At a time when the conventional lending system is going up in flames, a quiet yet fast-growing segment of the financial services industry is emerging from the embers as the hero the industry desperately needs. It’s always the quiet ones; yet the pote...
Nearly 40 years ago, Dubai Islamic Bank pioneered the concept of Islamic banking. Today it competes on an equal basis with the world’s largest conventional financial institutions
In 1975, history was created when Dubai Islamic Bank (DIB) became the first modern commercial Islamic bank in the world. Before this, customers had no choice but to use conventional banks for all their financial requirements. By incorporating Sharia princ...
European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...
Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.
In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.
A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.
A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.
While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.
Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.
Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes.
Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.
There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.
Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.
8 February 2007
HSBC warns of subprime mortgage losses
2 April 2007
New Century goes bus
14 September 2007
Wholesale markets have dried up
17 March 2008
Rescue of Bear Stearns
7 September 2008
Rescue of Fannie Mae
15 September 2008
Lehman Brothers file for bankruptcy
3 October 2008
US congress approves $700bn bailout
14 February 2009
$787bn stimulus approved by congress
The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve
The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks. The embargo lasted five months, and the effects are still seen today.
1923 – 1924
The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.
The Great Crash
Recovery and Recession
After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.
The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.