Download مشروع المنتجات المالية في الفقه الإسلام

 For-profit domain
 Non-profit domain
A balanced approach
Like a bird, an economy needs the two
sectors to fly
 Zakat
 Nafaqat
 Sharing in times of necessity, starvation, or
hardship
 Obligatory donation
 Applies to idle money (not used for one
year)
 Measure against hoarding
 Hoarding and the current financial crisis?
 Obligatory spending for designated relatives
 Parents, family, close relatives
 Subject to need
 Safety net
 Distribution of wealth
 Happiness cannot be achieved by one
domain
 Balance allows both to flourish and thrive
 Prohibition of israf
 Prohibition of usury or riba
 Prohibition of gharar or wagering
 Over-spending or over-utilization of
resources
 In consumption:
 extravagant spending
 Conspicuous consumption and status games
 In investment:
 Greed—”irrational exuberance”
 Bubbles => crashes
 Wealth preservation is an essential objective
of Shari’ah
 Israf violates preservation of wealth
 Results: pollution, global warming,
depletion of resources
 Essence of economics is to avoid israf
 Riba or usury: any stipulated addition over a
loan
 Includes both simple and compound
interest
 Prohibited by all divine religions as well as
Buddhism
 Two-thirds of world population subscribe to
this belief
 Debt grows faster than wealth
 Debt cannot be paid except with new debt
 Debt burden destroys the economy
1 pence borrowed
at 4% in 1 AD
In 1750 debt equals weight
of the globe of gold
In 1990 it equals 8190 globes!
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1975
1980
M2
1985
1990
GDP
1995
2000
Domestic debt
2005
2007
 Average growth annual rate:
 Debt: 39%,
 GDP: 21%,
 M2: 19%
 Debt-GDP ratio: 1.3 to 2.2
 Debt-M2 ratio: 2.2 to 4.2
Debt
Wealth
 Inverted pyramid is not sustainable
 Crashes needed to “clean up” the system
 Then debts start to accumulate again faster
than wealth
 Recurrent crashes
 Very costly to maintain the system
 Theory: Intertemporal Budget Constraint:
 The present value of debt go to zero
 Prevents Ponzi financing
 Reality: E.U. requirements:
 Deficit < 3% of GDP
 Debt < 60% of GDP
 Problem: Need to govern debt from the
ground-up
 Debt creation is integrated with wealth
creation
 For-profit debt must be contractually
embedded in real transactions
 Islamic modes of finance:
 Deferred sale; salam; leasing;
 Sale of a good for a deferred price
 Price includes markup
 Time value is paired with real value
 Murabaha: Financing deferred sale
 Opposite of deferred sale
 Price is spot; good is deferred
 Time-value is reflected in lower price
Debt
Wealth
 Gharar is risk with delusion or deception
 Risk: likelihood of loss or failure
 Two types of gharar:
 Degree of risk
 Form of contract
 Ex ante measure
 Gharar if Prob (loss) ≥ Prob (gain)
 Example: Lottery
 Where is delusion?
 Luck vs. skill
 Low likelihood of success means low skill
 The need for “feasibility studies”
 Ex post measure
 Gharar if it is a zero-sum game
 Examples:
 Gambling
 Sale of a lost car
 Sale of a closed box
 Why play a zero-sum game?
(A , B)
(+ , −)
(− , +)
 A zero-sum game cannot be played if the
two parties know in advance who will win
 Steps:
 Select first outcome
 If one player refuses to play, it is a zero-sum
outcome
 Repeat with other outcomes
 If all outcomes are zero-sum, the whole game
becomes a zero-sum game
Zero-sum
Positive-sum
Mixed
 One party gains only if the other does
 Interests are always aligned
(A , B)
(+ , +)
(− , −)
 Contains zero-sum and positive-sum
outcomes
 If the zero-sum outcome is dominant, it is
excessive gharar
 If not, it is minor gharar
 Game acceptable if the positive-sum
outcome is dominant
(Land lord , Farmer)
(+ , +)
(+ , −)
 Zero-sum games are always high risk
 High risk deals invite zero-sum games
 High-risk: speculation
 Zero-sum: gambling
 Riba: separates time from real transactions
 Gharar: separates risk from real transactions
 Time and risk are two sides of the same coin
 Riba implies gharar and vise versa
 Both allow obligations to grow independent
or real wealth => inverted pyramid
 Universal principles
 Economic ground
 Balanced approach