Islamic finance, economic crash, economies
The economic crash took place between 2007 and 2008. It originated from the United States. It is the worst economic crisis that has ever hit the world up to today. It has become a global issue, hitting economies in all countries. It has led to the fall or decline in the economies, markets and institutions that are recognized as the core to the global financial system (Mizanur, 2014). It has badly damaged well established financial institutions like Citibank, AIG and Lehman Brothers which are termed to be too big to fail. However, signifant financial institutions in the Islamic countries continue to show growth over the years.
Even with the crisis that has faced many economies, Islamic finance is sheltered from the global crisis. Islamic financial assets increased from $600 billion to $1.3 trillion between 2007 and 2012. Top Islamic banking and financial institutions have continued to grow economically, though slow, of around 30 percent from 2008 onwards (Mizanur, 2014). Islamic banks that operate within Gulf Corporation Council countries maintain their work base or even recruit more workers. Islamic banks such as Dubai Islamic bank, Al-Rajhi Bank, Maybank Islam and Kuwait Finance House continue to grow steadily.
[...] Countries like China and India remain as the fast growing economies in the world. To support this argument of the 25 world's fastest growing economies come from the Muslim countries (Foreign & Commonwealth Office, 2013). It has taken the advantage of today's ethical finance as stepping stone towards building its economy. Conclusion It concluded that the global economic crisis has not impacted on the Islamic finance. Islamic countries have taken this opportunity to expand their finance industry to foreign non- ISLAMIC FINANCE AND ITS COME BACK AFTER THE LAST ECONOMIC CRASH Islamic countries. [...]
[...] It has badly damaged well established financial institutions like Citibank, AIG and Lehman Brothers which are termed to be too big to fail. However, signifant financial institutions in the Islamic countries continue to show growth over the years. Impact on Islamic finance and its come back Even with the crisis that has faced many economies, Islamic finance is sheltered from the global crisis. Islamic financial assets increased from $600 billion to $ 1.3 trillion between 2007 and 2012. Top Islamic banking and financial institutions have continued to grow economically, though slow, of around 30 percent from 2008 onwards (Mizanur, 2014). [...]
[...] Rise of the Islamic financial system is contributed by the conservative leaders who are concentrating on establishing their Islamic credentials. Dependency on the Sharia financing systems and the reliance on the Gulf Arab countries where economies have grown steadily has ISLAMIC FINANCE AND ITS COME BACK AFTER THE LAST ECONOMIC CRASH helped the much younger countries to grow economically. Tunisia and Egypt have implemented new laws on the issuance of Islamic bonds in 2013. Morocco on the other side implemented a legal framework to guide the economic institutions in the country. [...]
[...] Growth of the Islamic finance is contributed by ensuring that its finances have a direct link between the real and the financial economies. In the Islamic financial systems, supervisory authorities have been created to make sure that all financial institutions comply with the financial instruments that are provided by the law. Equity based financing is embraced replacing the problematic debt based financing. This has brought an advantage over the other conventional financial systems which concentrate on debt based financing. Equity based financing ensure that wealth is distributed equally among the citizens. [...]
[...] (2014). Islamic finance as panacea to global economic crisis. Retrieved from: http://dailytrust.info/index.php/opinion/17303-islamic-finance-as-panacea-to-globaleconomic-crisis Mohammed, A. (2014). The rise of the Islamic finance. Council on Foreign Relations publications. Retrieved from: http://www.cfr.org/economics/rise-islamic-finance/p32305 Foreign & Common Wealth office. (2013). The future of Islamic finance in a global economy. Indonesia and Malaysia. [...]
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