Assalaamu Alaykum warahmatullahi wabarakatuh
New terms which are gaining popularity...
1. Islamic economics
2. Muslimpreneurship or Islamic Entrepreneurship
Not new but still unexploited...
● Islamic wealth planning and management
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Different experts giving brief explanation and benefit of Islamic Economics.
Will one day explain different economic systems and markets in comparison to islamic Economics.
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UAE Central Bank stops sale of savings/investment and Takaful/Insurance products
The UAE central Bank will deny requests from banks and financial institutions to market or sell “savings and Investment and non-capital guaranteed/protected Takaful/Insurance products”, according to a Central Bank circular issued on 11 May 2017.
The circular states that the UAE Central Bank has received an increasing number of complaints in relation to savings/investment and insurance/Takaful products.
“The Central Bank observed a common theme with complaints of miss-selling of these products, which are complex in nature and are not well understood. We observed that staff who are marketing the products at the counter are neither well trained to understand the risk profile of the customer, nor have the ability to explain such products to customers,” according to Central Bank the circular.
The Central Bank further stated that the responses provided to the Consumer Protection Department of the Central Bank by banks and financial institutions were “unsatisfactory”. Leading to the sale ban.
As a result of the complaints, the UAE Central Bank will be implementing a policy on Bancassurance, and is currently working on defining the governance structure. The new policy will include clauses for customer profiling and suitability of products, transparency, grievances redressal mechanisms and non-compliance charges for violating guidelines.
However, banks and financial institutions with specific approvals to market term life insurance and general insurance may continue to do so, according to the statement, but only if the employee selling these products has the requisite qualifications and must use a system to assess the suitability of the products for the customer.
All banks and financial institutions are advised by the UAE Central Bank to amicably resolve all outstanding complaints with their customers within 90 days from the date of the circular (11 May 2017).
“The recent circular from the UAE Central Bank dealing with what they say is 'the common theme of mis-selling' of Bancassurance products makes for fascinating reading. The UAE “Onshore” regulatory environment has been shifting significantly over the last 12 months and this is a demonstration that a further realignment is needed to protect the underlying consumer,” Nigel Sillitoe, CEO, Insight Discovery, a leading market intelligence business, told CPI Financial. “Whilst I’m not too surprised by some of the statements in this circular it does further demonstrate that there is a drive for better consumer protection and higher standards for advisors operating within onshore financial services market. The circular appears to suggest that all banks need to rectify all the outstanding client complaints ‘amicably’ within ninety days. This could see an interesting outcome for the banks and the insurance companies, as the UAE central bank in the past has generally taken the positon of ‘return the client to the monetary position he was in before he or she was mis-sold’. I think with all the other regulatory changes with the IA and ESCA, changes on commission structure’, and full disclosure coming in from the Isle of Man based Insurance groups in 2018, it will be an interesting few years for financial services companies operating onshore in the UAE.”
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QUESTION: A friend bought Islamic banking BOOK and I found it very beneficial. Can I PHOTOCOPY the same instead of incuring usd 40 in purchasing a copy? What's the ISLAMIC Ruling on COPYRIGHTS?
ANSWER: COPYING the NOTES without the owner’s PERMISSION is a TRANSGRESSION and WRONGDOING.
It is NOT PERMISSIBLE for one who knows the situation to copy or buy these notes; if he does so, then he is a partner in the transgression and SIN.
Intellectual property rights -- such as written works and inventions -- are PROTECTED and belong to the authors; it is NOT PERMISSIBLE to transgress against them.
We need to have a paradigm shift in how we handle our finances.
When we get an income spend it in this order;
1. Pay Sadaqa
2. Save
3. Spend the balance
[Sheikh Abdilatif]
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QUESTION: I went to my bank to buy me a car and they told me they will buy the car and sell to me through MURABA HA concept. Their selling price is different for different period. The price if i paid their money in one year is lower than if i paid on 2 years. I wish to ask,
a) What is murabaha and how does it work.
b) Isn't it RIBA if price increases with increase in repayment period?
ANSWER:
a) In a simple terms, MURABAHA is a sale based contract. The customer approaches the BANK with request. The bank PURCHASES the item and owns it before selling it to the customer at a profit. The customer can then pay the debt as per the agreement.
ANSWER:
b) CREDIT price can be higher than CASH price and one credit price can be higher than another so long as you agree with the BANK before closing the deal and that the bank cannot change the price once the deal is sealed.
Even though the texts state that it is permissible to DELAY PAYMENT, there is no text which states that it is PERMISSIBLE to INCREASE the PRICE in return for that DELAY.
Hence the SCHOLARS DIFFERED concerning the ruling on this issue.
A FEW SCHOLARS said that it is HARAAM, on the grounds that it is RIBA. They said: because this is increasing the price in return for the deferment, and this is riba.
But the MAJORITY of SCHOLARS, including the FOUR IMAMS, were of the view that it is PERMISSIBLE.
The comments of the SCHOLARS of the FOUR MADHHABS concerning this include the following:
The HANAFII MADHHAB: “The PRICE may be RAISED in return for delaying payment,” (BADAA’I’ AL-SANAA’I’, 5/187)
The MAALIK MADHHAB: “For more time some amount may be added to the price.” (BIDAAYAT AL-MUJTAHID, 2/108)
The SHAAFA’I MADHHAB: “Five in cash is equivalent to six in deferred payment.” (AL-WAJEEZ BY AL - GHAZAALI, 1/85)
The HANBALI MADHHAB: “Delay add something to the price.” (FATAAWA IBN TAYMIYAH, 29/499).
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“O you who believe! Fear Allah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger.”[al-Baqarah 2:278-279]
In this day and age, where in many countries you’re only as good as your credit score, it’s easier than ever to fall prey to riba. What’s worse? Many financial institutions often conceal riba so that it is difficult for most Muslims to discern and avoid it. So beware it's your duty to find out.
Jazakumullahu khayran
Ikhwani fiddeen
Alhamdulillahi rabbil aalamin
Barakumullahu fikum
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@musafir pimentel
Manila Philippines
