Share a link:
https://casecent.re/p/157692
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Banking and finances based on ethical standards of Muslims are now an integral part of international financial market. Vitality and stability of financial institutions in crisis period arose more and more interest to the in Russia and abroad. In this article, it presents the analysis of the condition and effectiveness of the use of an Islamic investment instrument, which detects major tendencies of this branch development. It was determined that financial instruments that correspond Islam principle have a big potential for development, even in a period of economic crises. But absence of special regulation slows process of their development. According to standards of Islamic ethics, righteous is only wealth that is a fruit of one's own labor and entrepreneurial efforts, and is also the one that is received as heritage or as a gift. Therefore, profit is considered as award for a risk associated with any business enterprise. Religious standards and taboos that are mandatory for conduction and adherence for everyone Muslim became a reason for the genesis of Islamic investment funds (Bekkin R, 2015, p 141). The increase of Islamic population size in developed countries promoted the expansion of Islamic financial institutes and, respectively, increased interest of investors from Islamic countries in geographical diversification of investments portfolios. The increase of demands for socially responsible investment is anticipated by a range of companies from the point of view of their attentiveness to issues of environmental protection, improvement of labor conditions etc.
About
Abstract
Banking and finances based on ethical standards of Muslims are now an integral part of international financial market. Vitality and stability of financial institutions in crisis period arose more and more interest to the in Russia and abroad. In this article, it presents the analysis of the condition and effectiveness of the use of an Islamic investment instrument, which detects major tendencies of this branch development. It was determined that financial instruments that correspond Islam principle have a big potential for development, even in a period of economic crises. But absence of special regulation slows process of their development. According to standards of Islamic ethics, righteous is only wealth that is a fruit of one's own labor and entrepreneurial efforts, and is also the one that is received as heritage or as a gift. Therefore, profit is considered as award for a risk associated with any business enterprise. Religious standards and taboos that are mandatory for conduction and adherence for everyone Muslim became a reason for the genesis of Islamic investment funds (Bekkin R, 2015, p 141). The increase of Islamic population size in developed countries promoted the expansion of Islamic financial institutes and, respectively, increased interest of investors from Islamic countries in geographical diversification of investments portfolios. The increase of demands for socially responsible investment is anticipated by a range of companies from the point of view of their attentiveness to issues of environmental protection, improvement of labor conditions etc.