Rodney Wilson

Islamic finance and ethical investment

Reports that there are lessons which can be learned from the Western ethical “green” finance industry for Islamic investors. States that these are that the criteria for investment selection are different, and the modes of permissible financing may also differ, but there are screening and reporting techniques which are of potential importance to both groups of investors. First addresses ethical fund management issues, which should shed some light on the dilemmas facing Islamic investors. Goes on to consider criteria for haram and halal investment, as well as the implications of company capital gearing or leverage for riba. Covers investment specific issues, including the treatment of capital gains in Islam and the evaluation of the conduct of market participants. Finally, surveys emerging markets in the Islamic world, as these are of obvious interest to Muslim investors wishing to broaden their portfolios.

Islam and business

The underdevelopment of many of the Muslim economies along the Silk Road is often ascribed to the negative effects of Islam. Yet historically, the Muslim cities along the Road were thriving centers of commerce, and since the collapse of the Soviet Union, there appears to be a revival of business as central Asia is opened up to the global economy. Islam has its own distinctive code of business ethics, and the trust this fosters can lower transaction costs and increase management efficiency. There is no inherent conflict between Islam and capitalism; indeed, it is possible to identify the emergence of a distinctive Islamic type where capital accumulation is based on noninterest forms of financing.

Innovation in the structuring of Islamicsukuk securities

Purpose - The purpose of this paper is to provide an analysis of different Design/methodology/approach - Flow charts are used to illustrate the financial transfers and the rights and obligations of Findings - The paper finds that special purpose vehicles are a prerequisite for the successful issuance and management of Research limitations/implications - The data analysis was restricted to two countries, but this could be extended. Alternative pricing benchmarks were suggested for sovereign Practical implications - Ministries of Finance and Central Banks of Muslim countries should review their debt financing policies and explore the potential of sovereign Originality/value - Little has been written previously on the use of

Economics, ethics and religion : Jewish, Christian and Muslim economic thought

List of Tables and Figures - Acknowledgements - Economics and Ethics - Judaism - Christianity - Islam - Business Ethics - Index

Economic development in the Middle East

1. Introduction 2. Modelling Middle East Economic Development 3. Growth and Structural Change 4. Population Growth and Employment 5. Capital Markets, Savings and Investment 6. An Islamic Model for Economic Development 7. Oil and Development 8. International and Intra-Regional Trade 9. The Role of the State

Education, School to Work Transitions and Unemployment in Saudi Arabia

Much attention has been focused on the problem of unemployment in Saudi Arabia, not least because this is believed to be a factor fuelling social discontent among the young, and encouraging a minority towards support for militant extremism. To what extent is unemployment due to failures of government policies, and how far does it reflect unrealistic expectations amongst the unemployed themselves and their attitudes to work? Do family circumstances influence attitudes, and to what extent have their educational experiences equipped young Saudis to join the workforce? The Saudi Arabian budget allocates more funds to education and training than any other government in the Middle East, but despite universal primary education, and the vast majority of young people benefiting from secondary education, many seem ill equipped for the job market. University enrolments are comparable to those in Egypt, a country with three times the population of Saudi Arabia, but drop-out rates are high, and many Saudis appear to enter higher education because they get modest scholarships from the government as students, rather than because they are motivated by their courses, or regard them as relevant to subsequent possible employment. In this article national education policy is discussed, followed by an examination of the labour market. The results of a survey of 18–26 year olds undertaken between November 2000 and February 2001 are then considered, the respondents including students, unemployed youths and those in employment. This survey involved 411 respondents in the Al Hassa region of Eastern Province, one of the poorest regions of Saudi Arabia. Although the responses may not be representative of the entire Kingdom, they highlight some of the difficulties faced by policy makers in Riyadh in trying to ensure more young people become active participants in the workforce, and thereby stakeholders in the economy, rather than being alienated and disaffected. Saudi Arabia invests substantial amounts on education provision, amounting to almost 24 per cent of total government spending in 2003, compared with 17.5 per cent in 1992 and less than 10 per cent in 1982. Total spending on human resource development exceeds

Arab Government Responses to Islamic Finance: The Cases of Egypt and Saudi Arabia

13 billion annually, and this is reflected in educational enrolment – by 2001 the Kingdom, with its youthful population, had almost 4.3 million pupils, 23,000 schools and over 360,000 teachers. Literacy rates have improved significantly: although the adult literacy rate was 77.1 for those aged 15 and above in 2001, the youth literacy rate for those aged 15 to 24 was 93.1 per cent, and 94 per cent of children had benefited from at least 5 years of schooling. Middle Eastern Studies, Vol. 41, No. 4, 533 – 545, July 2005

The contribution by economists to middle eastern studies (1973–1998)

The growth of modern Islamic banking since the 1970s has posed a dilemma for governments in the Arab world, as there was suspicion about whether those behind the movement also had a political agenda, but there was also a realization that the Islamic finance could potentially contribute to capital formation and economic development. As a consequence, while some Arab governments were openly hostile to Islamic banks, with Syria, Iraq, Libya and Algeria refusing to allow such institutions to operate, other governments, notably in Jordan, Tunisia and the Sudan saw Islamic finance more opportunistically, as a means of attracting capital inflows from the oil rich countries of the Gulf where there was greatest enthusiasm for this new form of interest-free banking. In this study attention is focused on Egypt and Saudi Arabia, both of which have been crucial for contemporary Islamic financial developments. The Egyptian government’s policy has alternated between hostility, opportunism, and an attempt to manipulate and control the movement for its own purposes. In Saudi Arabia, despite the regime’s supposed duty to uphold the shari’a law, Islamic banks were not permitted to operate within the kingdom until 1987, and even then it was with extreme reluctance that only one institution was tolerated. As in Egypt, although there was widespread popular support for Islamic finance, the government has been obstructive, and has been quite willing to discredit the movement even though some members of the royal family were involved, notably Prince Mohammed bin Faisal.

Economic change and re‐interpretation of Islamic social values

Abstract More economists have been involved in Middle Eastern studies during the last twenty‐five years than ever before, and economists from the region itself now rightly play a dominant role. Inevitably amongst economists there have been disagreements and different schools of thought, especially over the role of the state and the desirability of privatization and structural adjustment policies. There have also been different definitions of rentier states, and contrasting analysis of the dynamics of oil pricing and the effects of oil revenue. Much attention has been paid to regional economic integration issues, even though little has been achieved in that field. There is increasing interest in external trade and investment issues, but in a region where poverty persists, economists should perhaps focus more on the basic needs of the poor which are not being met. Applied microeconomic studies should be given greater priority, as macroeconomic issues have been exhaustively covered and debated.

Cyprus and the European Community

I would like at the outset to emphasize my own position and background. I come to this topic not as an Islamic scholar, and I know that many of you are much more qualified to talk about Islam and Islamic ideas than I am. Rather my training is in economics, essentially Western economics, and the approach I must take when examining Islamic economic ideas and their implications is basically from a Western perspective. At its core there are several assumptions in all Western neo-classical economics which are certainly applicable in Western societies, but the extent to which they have universal applicability must be debatable. I would like to focus on just three of them. I will then go on to illustrate their relevance or irrelevance in an Islamic context.