UAE Laws and Islamic Finance

Laws of the UAE and Islamic Finance

Archive for April 16, 2012

World Takaful Report 2011 and 2012

World Takaful Report (2011)

The World Takaful Report 2012

The Islamic and Jewish Laws of Usury: A Bridge to Commercial Growth and Peace in the Middle East

By: Daniel Klein


If the Israeli, Jordanian, and other governments commit themselves to forging lasting peace in the Middle East, the interest-free commonality may serve as a small   n136 step in this direction. Israel’s major banks could establish mudaraba and murabaha accounts. Arab leaders would then be able to publicize the fact that Jewish law requires that financial transactions between Jews be free of interest, and Israeli banks would advertise their interest-free products. Especially for the secular Arab governments,   n137 the Jewish legal system’s treatment of interest presents a serendipitous means for squaring these two aims. In this situation, the Arab governments can demonstrate that detente with Israel will not be antithetical to the Shar’iah.   n138

For hundreds of years, Jews acted as financiers in the Islamic world.   n139 Shared legal traditions could help to revive major financial and  [*554]  commercial discourse between Jews and Muslims. Joint Arab-Israeli interest-free investment is likely to be profitable for all involved, as the combination of Arab capital with Israeli technology could bring tremendous growth to the Middle East. In the process, Islamic fundamentalists and Israeli hardliners will be exposed to each others’ legal traditions. Their enemies will no longer be faceless infidels, but people with profound cultural similarities — and maybe, one day, enemies no longer.



Islamic Banking and Finance: Fundamentals and Contemporary Issues

Islamic Research and Training Institute, Islamic Development Bank

Click to access IslamicBankingandFinance.pdf


UAE Laws and Islamic Finance

Laws of the UAE and Islamic Finance