Reuters is reporting that Prince Alwaleed is refinancing his operations which looks like rather conventional capitalist loans. An interesting term was used by observers, see if you note it:
In June, sources told Reuters the investment firm had hired Deutsche Bank and Banque Saudi Fransi for its maiden debt issue in the local bond market.
"Maiden?" This usually means first time, as in the first time for a usury-based loan, and of course the allusion is sexual.
Being taking advantage of is often alluded to in sexual terms, for example "getting screwed." Coarse people, these financial writers.
The question for a student of Islamic Finance is how a Moslem can get around the usury prohibition with such deals. There is a geography is Islamic finance in which various countries more or less comply with the rules.
Ibrahim Warde (NB: This is an entire book .pdf download) notes:
Now the Bible makes a controversial exception to the usury ban -
"To a foreigner you may charge interest, but to your brother you shall not charge interest, that the LORD your God may bless you in all to which you set your hand in the land which you are entering to possess. (Deuteronomy 23:19,20)
Controversial because it is often seen as the source of mischief. But perhaps the explanation is somewhere in there, this is making money on money outside of Islam, and therefore permissible, a point that is I imagine debatable.
Please feel free to share this post with three of your friends.
In June, sources told Reuters the investment firm had hired Deutsche Bank and Banque Saudi Fransi for its maiden debt issue in the local bond market.
"Maiden?" This usually means first time, as in the first time for a usury-based loan, and of course the allusion is sexual.
Being taking advantage of is often alluded to in sexual terms, for example "getting screwed." Coarse people, these financial writers.
The question for a student of Islamic Finance is how a Moslem can get around the usury prohibition with such deals. There is a geography is Islamic finance in which various countries more or less comply with the rules.
Ibrahim Warde (NB: This is an entire book .pdf download) notes:
Islamic finance is a complex and paradoxical phenomenon. A brief
overview of a leading Islamic banking group suggests the limits of facile
and sweeping generalizations: Dar Al-Maal Al-Islami (DMI), the largest
transnational Islamic group, is headquartered in the Bahamas and
operates primarily out of Geneva yet uses the language of the Islamic
umma; although controlled by Prince Mohammed al-Faisal al-Saud (the
second son of the late King Faisal, after whom the principal subsidiaries of
the group are named), the group does not operate a commercial bank in
Saudi Arabia, a ‘fundamentalist’ country that has been instrumental in
bringing about modern Islamic banking yet is one of the least hospitable
countries to Islamic banks; to complicate things further, the DMI group
has nonetheless been a significant conduit of Saudi money and influence
throughout the Islamic world. In sum, the story of Islamic finance is a vastly
complicated one, and cannot be captured without a full understanding of
religion and finance, and also of history, politics, economics, business and
culture.
Now the Bible makes a controversial exception to the usury ban -
"To a foreigner you may charge interest, but to your brother you shall not charge interest, that the LORD your God may bless you in all to which you set your hand in the land which you are entering to possess. (Deuteronomy 23:19,20)
Controversial because it is often seen as the source of mischief. But perhaps the explanation is somewhere in there, this is making money on money outside of Islam, and therefore permissible, a point that is I imagine debatable.
Please feel free to share this post with three of your friends.
No comments:
Post a Comment