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The Place Of Shari'Ah In The Global Financial Architecture Islamic Finance In The Uae

Author

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  • OPREA Raluca Ioana

    (Lucian Blaga University of Sibiu)

Abstract

The entire global financial architecture incorporates, besides capitalism, a parallel system based on its own principles and rules: Islamic finance. Amid the crisis of 2008-09, the banking system entered at the forefront of debates; even so, there is a gap when it comes about understanding principles of Shari'ah. This paper aims to unify the core principles of Islamic finance, it's operating tools, Shari'ah compliance approaches and Islamic finance in UAE. Formulated as an alternative to the conventional financial system, with the governing principles based on religious doctrines stated in Quaran and Sunnah, Shari'ah rejects riba (usury),gharar (excessive risk) and facilitates various types of transactions based on specific types of contracts. Although it started to gain territory in the last five decades, the Islamic finance growths with an average rate of ten percent per year.

Suggested Citation

  • OPREA Raluca Ioana, 2016. "The Place Of Shari'Ah In The Global Financial Architecture Islamic Finance In The Uae," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(2), pages 56-68, September.
    • Handle: RePEc:blg:reveco:v:68:y:2016:i:2:p:56-68
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/68205oprea.pdf
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    References listed on IDEAS

    as
    1. Heiko Hesse & Andreas (Andy) Jobst & Juan Solé, 2008. "Trends and Challenges in Islamic Finance," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 9(2), pages 175-193, April.
    2. Omar Masood & Hasan Al Suwaidi & Priya Darshini Pun Thapa, 2012. "Credit risk management: a case differentiating Islamic and non‐Islamic banks in UAE," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 4(2/3), pages 197-205, August.
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    More about this item

    Keywords

    Sharia; Islamic finance; Islamic banking; UAE;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • G2 - Financial Economics - - Financial Institutions and Services
    • K1 - Law and Economics - - Basic Areas of Law

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