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
Friday, July 25, 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
Omani students explore BAE Systems facility
Bait Al Zubair hosts iftar for employees
UAE Exchange ties up with Unicef to support children
SQU student chosen for DSS apprenticeship
Ahlibank holds iftar gathering
Other Top Stories
Air Algerie plane with 110 on board crashes over Mali
75 killed in separate Iraq attacks
Boeing inks deal to provide plane parts to Iran
Ukraine PM quits after collapse of ruling coalition
Two-hour-long execution sparks outrage in US, lawyers seek probe
India
19 school children die as train rams into bus
Human Development Index ranking unchanged at 135
Venkaiah to give statement in Parliament on force-feeding
Easy access to antibiotics kills resistance, raises fears of deadly diseases
Patients have right to Ďget medical recordsí
Iíll remain an Indian until death, says Sania
Pakistan
Pakistan to restart work on improving trade with India
N. Waziristan needs Rs2.6b for helping displaced persons
Middle East
Troops try to oust rebels holed up in Benghazi, 9 killed
Sudanese woman in apostasy case arrives in Italy, meets Pope Francis
Egypt blames foreign intelligence for border attack
Kuwait opposition says revoking of citizenship illegal
Violence, displacement mar joy of Eid in Darfur
Asia
China inspects 600 food outlets over safety scare
Bad weather did not cause crash of TransAsia flight, says Taiwan
Afghan bike blast kills 6; 2 aid workers shot dead
Business
Ukraine, ME crises take toll on global growth outlook
Saudi Arabia move to open up $550b stock market expedites reform drive
British regulator, banks in talks to settle forex-rigging case this year
Nokia jumps back into profit
Taqa pulls out of $1.6b India deal
Japan H1 trade deficit surges to record on weak exports
Wipro profit up 30% on firm spending
Sports
Jayawardene ton propels Sri Lanka
Cricket to stay out of 2018 Games as ICC rejects offer
Lampard joins New York City
Afghanistan crush Zimbabwe to draw four-match series
Nibali on verge of Tour triumph
England grab triathlon double, Farah pulls out
Youzhny begins Gstaad title defence with victory
Saints thrash Bolivar 5-0

Sports


International

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