As an Actuarial Science major, I had an initial interest the significance of Islamic finance. Reflecting upon Sharia Law therefore led me to research its usefulness and the substantial differences between conventional finance practices still used to this day. Unlike its conventional counterparts, Islamic finance is governed by Islamic Law in addition to the finance industry. As a result of the controversy this therefore created, Islamic finance was suppressed for several decades; prior to making its modern appearance in the early 1970s.
The foundation of Islamic finance is centered upon the idea that “Allah is the owner of all wealth in the world, and humans are merely its trustees.” This understanding provides the establishment of Islamic finance’s distinct core principles. Foremost, Islamic beliefs adhere to the ideas of a free – market economy. Muslims believe that by prohibiting the government to dictate supply and demand, they are advocating for social justice. Other key principles that Islamic finance adheres to includes, but is not limited to: prohibiting interest, avoiding gambling, and abstaining from investments involving prohibited industries (Jamaldeen).
2 replies on “Islamic Finance”
Thanks for making this connection between your major and this core course! There are laws in the Bible that prohibit usury as well, and so you might find it interesting to do a comparison of how Judaism, Christianity, and Islam have interpreted and applied these texts.
Given your interests, you should definitely take more Religion classes!
I will have to look into this more! I do really enjoy religion courses. I had the opportunity to take an honors seminar on faith, doubt, and reason with Rev. Meyers last year. He had told me the same thing. If I wasn’t graduating early, I would definitely be doing so!