Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Monday, July 28, 2014  

Islamic banking aims at meeting needs of faithful: Abu Ghuda
Zainab Al Ansariah

MUSCAT The Islamic banking system is an attempt to return to the Islamic civilisation, which still has its impact in all fields in the western and eastern countries, according to Sheikh Dr Abdulsatar Abu Ghuda, who is specialised in the field of jurisprudence as the chairman of legitimacy monitoring in a number of financial Islamic authorities.

Abu Ghuda, who works at Makased Company for Islamic Financial consultations, said in an Oman Tribue interview that money is not the goal but it is a means to a better life. “The Islamic banking system is a national product that comes from the civilisation of Muslims and meets the requirements of people,” he said.

Islamic banking is not replacing the expression ‘interest’ with another expression but it has its own rules and principles according to the Sharia and everyone should understand that it is not a matter of expression or title but a matter of content and rules. The Islamic bank is not a bank, which raises the title of Islamic bank, but a bank, which follows the legal regulations, he said.

The traditional banks charge ‘interest’ when a customer takes a loan, but in that loan the bank does not take a risk while the person who takes the loan has to pay additional amount in case of delay in making payments. Therefore, in this case, the bank takes more than what is worth, he said.

In the Islamic banking system, the profit is known before sanctioning a loan, and no additional payments will be added once the loan deal is signed. Thus, it is clear to everyone that the traditional bank charges progressive interest for the loan, while in the Islamic system the relation between the bank and the customer is a partnership, which follows the system of ‘profitability’.

Sheikh Abdulsatar Al Qatan, director-general of Shura Company for legitimated consultations in Kuwait and a member of Fatwa and legal supervision in number of Islamic financial companies and institutions, gave another example for the Islamic banking system to clear people’s doubt on the issue.

“When a person applies for a loan from a bank to buy or rent a house, the bank has an option to buy the house and sell it to that person and ask him to pay in instalments as per the profitability system.”

Al Qatan added that in this transaction the customer knows all the financial details and knows the interest figure. Also the bank can sell the house through ‘renting system’ in which it rents the house to the customer for a certain period of time, which will be ended by transferring the ownership to the customer.

In the above example of Islamic banking deals, there is a commodity, the house. Its price is known and so are the instalments for the two parties, thus making it a profitable deal.

The Islamic bank also offers many services, for example, if a company requires finance to meet its capital, the bank enters into a partnership deal with the company in which the bank finances the company with known amount of money, and gains a portion of profit from the company while the additional profits will go to the company itself.

Oman Tribune
NEWS UPDATES
Oman
Salalah turns tourist hot spot
150 Tabseel sites get ready in Al Mudhaibi
Bait Al Zubair to stay open
Other Top Stories
Army captures Homs gas field as IS advances
5 die in bomb attack on Nigeria church
Eid to be celebrated on Tuesday
97 killed as militias try to capture Libya airport
Cameroon deputy PM’s wife abducted
India
Jurists’ views to be sought on bill to scrap collegium
Government mulls amendments to curb misuse of anti-dowry law
38 held, blame game starts over violence in Saharanpur
CBI inquires into Google mapping of defence installations
India move will boost ties: Nepal
Mobile wallet needs more time to gain fans
Pakistan
Government bid to call out army to secure Islamabad challenged in court
Islamabad saw more sectarian killings in 2013 than preceding decade
Middle East
Al Qaeda rebels kill 8 in Yemen
Militiamen parade bodies of IS rebels in Iraq city
In IS-ruled Mosul, residents in state of fear
No clue about cause of Air Algerie crash
Asia
Tainted Chinese food supplier to withdraw items
Philippines welcomes 100 millionth infant
Malaysian Airlines in financial turmoil
Bali goes ahead with mass dog culls despite criticism
Business
India’s rating to stay stable, says Morgan Stanley
Qatar spending growth at 11-year low
BSkyB to buy German, Italian firms to create EU media powerhouse
New asset bubbles likely to derail tepid global recovery
Cairn looks to extend Rajasthan oil block permit
Reliance Power to acquire Jaypee’s hydro projects
Fox likely to sell CNN despite higher tax bill, may not spin it off
India mulls media blitz to woo foreign investors
Sports
Hungry Ricciardo tastes victory
Dyke calls for overhaul in FA’s governing council
Test poised for close finish between Sri Lanka and S. Africa
Ashmeade, Gemili cruise in 100m
Kittel wins final stage but Nibali is 2014 champ
Dhoni warned by ICC over Jadeja row
Cook misses ton but Ballance makes up for captain

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution