When is Shari’a not Shari’a?

When is Shari’a not Shari’a?

29th January 2010

As a financial product offering needs to have a seal of approval or Fatwa from a Shari’a scholar, interesting anomalies can occur. In a recent BBC News article (read the full story here) whether a product gets approved or not depends on the individual scholar’s view on the matter. If a scholar refused a product, the bankers would practice ‘Fatwa Shopping’ by going to another, “If he doesn’t give it to us, we phone up another scholar, offer him a sum of money for his services and ask him for a Fatwa. We do this until we get Shari’a compliance. Then we are free to distribute the product as Islamic.”

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Retaining a Shari’a Stability

Retaining a Shari’a Stability

17th December 2009

Abu Dhabi stepping in to bail out Dubai is news in itself, but if they hadn’t, the repercussions for Shari’a Banking would be equally significant.
Defaulting on the Islamic bonds (Sukuk) could have destabilised the Islamic finance sector at a time when the world isn’t in the best financial health. This damage limitation exercise by Abu Dhabi means Islamic finance is still profitable ‘post Dubai’ (Forbes).

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