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
Saturday, November 22, 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
Sultanate embassies mark National Day
GCC-Stat conveys N-Day greetings
OCI extends help to 2,000 poor in Gaza Strip
Rawiyah, Evan discuss ties
Bank Sohar fetes cyclist who toured region to praise HM
Fahd receives Moroccan official
Middle East
Israel demolishes home of Palestinian in tram attack
5 killed in car blast in Iraqi Kurdish capital
Spanish MPs call for recognising Palestine
Tunisia rappers, media fear censorship after poll
Baghdad, Kurds reach oil deal
Business
Brent crude climbs above $79 on hopes of Opec output cut
Cyber attacks to become more sophisticated
WhatsApp starts encrypting users messages
Shell wins $3b Indian tax row over transfer pricing
M&M gets nod to sell Australian planes in India
Indian rupee hits 8-month low on higher dollar demand
Asian bankers’ conference begins
S. Arabia oil policy uncertainty unleashes conspiracy theorists
Falling oil prices to keep drilling costs lower
Sports
South Africa succumb to Finch-hitting
Oman do well in Beach football
Srikanth and Sindhu win to advance
Ronaldo-Messi duel ends in damp squib
Injured Federer hopeful of making Davis final
F1 showdown could spell double trouble
‘Abu Double’ is artificial: Prost
Bryant reaches NBA career milestone
Delhi down Mumbai to win second straight tie in CTL
Bhupendra excels with bat and ball for ISM against ISWK

Sports


International

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