Islamic Banking V

Retweet this button on every post blogger Qard Hassan (Good Loan)
This is a loan extended on a goodwill basis, and the debtor is only required to repay the amount borrowed. However, the debtor may, at his or her discretion, pay an extra amount beyond the principal amount of the loan (without promising it) as a token of appreciation to the creditor. In the case that the debtor does not pay an extra amount to the creditor, this transaction is a true interest-free loan. Some Muslims consider this to be the only type of loan that does not violate the prohibition on riba, since it is the one type of loan that truly does not compensate the creditor for the time value of money

Sukuk (Islamic Bonds)
Sukuk is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. However, fixed-income, interest-bearing bonds are not permissible in Islam. Hence, Sukuk are securities that comply with the Islamic law and its investment principles, which prohibit the charging or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets.
Conservative estimates suggest that over US$500 billion of assets are managed according to Islamic investment principles. Such principles form part of Shariah, which is often understood to be Islamic law, but it is actually broader than this in that it also encompasses the general body of spiritual and moral obligations and duties in Islam.

Takaful (Islamic Insurance)
Takaful is an alternative form of cover that a Muslim can avail himself against the risk of loss due to misfortunes. Takaful is based on the idea that what is uncertain with respect to an individual may cease to be uncertain with respect to a very large number of similar individuals. Insurance by combining the risks of many people enables each individual to enjoy the advantage provided by the law of large numbers.

In modern business, one of the ways to reduce the risk of loss due to misfortunes is through insurance which spreads the risk among many people. The concept of insurance where resources are pooled to help the needy does not contradict Shariah. However, conventional insurance involves the elements of uncertainty (Al-gharar) in the contract of insurance, gambling (Al-maisir) as the consequences of the presence of uncertainty and interest (Al-riba) in the investment activities of the conventional insurance companies. These factors (uncertainty, gambling and interest) contravene the rules of Shariah. It is generally accepted by Muslim jurists that the operation of conventional insurance does not conform to the rules and requirements of Shariah.

Wadiah (Safekeeping)
In Wadiah, a bank is deemed as a keeper and trustee of funds. A person deposits funds in the bank and the bank guarantees refund of the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands it. The depositor, at the bank's discretion, may be rewarded with a hibah (gift) as a form of appreciation for the use of funds by the bank. In this case, the bank compensates depositors for the time-value of their money (i.e. pays interest) but refers to it as a gift because it does not officially guarantee payment of the gift.

Wakalah (Agency)
This occurs when a person appoints a representative to undertake transactions on his/her behalf, similar to a power of attorney.

Next post: Islamic Equities

Too much Caffeine... actually helps!!

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It was a long long day at work!!

Today's Dose Of Wisdom: The Virtues of Proactivity!

Retweet this button on every post blogger "Somebody has to do something, and it's just incredibly pathetic that it has to be us." Jerry Garcia.

This echoes the voices of millions! Especially in this region!

The Forgotten Millions - 30 years in the wrong direction

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Thirty years ago, Iraq announced that there are NO iletirate people in the country. So, to be on the safe side, I'd say the literacy rate was more than 95%, and Iraq was going through what I would dare to call a renaissance.

Now, in the twenty first century, the new statistics are:

1 Million divorced women
2 Million Widows
4 Million Iletirate

Why?
Was it because of the 8-year war between iraq and iran?
Was it because of the Gulf war?
Was it beacause of the decade-long economical seige the world enforced on Iraq?
Was it because of the American invasion of Iraq?
Or, Was it because of the ongoing occupation, and the mess associated with it?

No matter the reason, or the excuses. No promise, no goodwill, nothing, can make us escape the bleak outlook of the Civilization of Iraq! A whole generation has been lost, and all we can say is God saves the one coming.

Iraq has always bounced back. History is there for everyone to see! This nation never dies. Shame on those who think it will, and shame on the world for watching while all sorts of dogs, and vultures tried to kill it.

A relationship in crisis!!

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It's in times like these, that you know how much the morning's cup of coffee means to you, and you know that you should never take it for granted!

Life is short, learn to appreciate the ones, and equally the things you value the most.

I intend to do that immediately after Ramadan is over.

Americans flock to Jordan to study Arabic

Retweet this button on every post blogger AMMAN, Jordan - Young Americans studying Arabic like to joke that Jordan is "Middle East Lite" — a safe way into a tumultuous region without Lebanon's violence, Syria's tense relationship with the U.S. or the Gulf's conservative culture.

Drawn by that reputation, an increasing number of Americans interested in Arabic have been flocking to Jordan.
The capital, Amman, lacks much of the history and color that attract Americans to Cairo, the most popular destination for foreign students who want to learn Arabic. But Amman comes without the air pollution and crowds that plague Egypt's capital. It also feels more Western with its clean streets and numerous American shops and fast-food restaurants.
"I've traveled to Morocco but not to the heart of the Middle East, and Jordan was that good entry point," said Liza Hester, an Arabic student from Maine's Colby College.
She speculated that places like Egypt and Yemen would be more difficult to navigate and said her college would not give her credit for Arabic classes taken in countries on the U.S. State Department's travel advisory list, such as Syria and Lebanon.
Jordan, perhaps best known as home of the ancient red rock city of Petra, has generally been safe for foreigners despite an occasional flare-up in violence. A Palestinian gunman wounded six people outside a popular Roman amphitheater in Amman earlier this summer, while triple hotel blasts claimed by al-Qaida in Iraq killed 63 people in 2005.
But such attacks have done little to damage Jordan's image as a placid island of stability.
Amman has also become a doorstep to neighboring Iraq: Construction has boomed with Iraqi investments and Iraqi refugees have flooded in. Westerners traveling to Baghdad or using the Jordanian capital as a base for operations in the wartorn country are also common.
Still, Amman remains far sleepier than other Arab capitals.
"Amman is like the Kansas City of the Middle East," Kelly Nau, a 26-year-old Los Angeles native who came to Jordan to work as a nurse, said between puffs from a waterpipe at one of the city's stylish cafes.
It may not have the "allure of Damascus, Beirut or Jerusalem," but, Nau adds: "It is stable."
More than 300 Americans are expected to study Arabic at the University of Jordan in the fall, making up over half of this year's class of 600 students.
The size of the program has tripled since the Sept. 11 attacks in the United States, said Tawfiq Omar, the academic adviser for foreigners learning Arabic at the university.
It is the largest of more than 30 Arabic language programs offered in Jordan. Many charge about $2,000 per year in tuition — less than the cost of many programs in countries like Egypt and Syria, which have also seen an increase in Arabic language students from the U.S. since the 2001 attacks.
For some, the cheap tuition means money left over to party in Amman's nightclubs and Irish pubs. Others get jobs waiting tables in the city's restaurants or write English speeches for Jordanian officials to pay the bills.
Jordan's moderate government has encouraged Americans to visit the country, hoping the exchange will reduce misconceptions about the Middle East. The country's youthful Queen Rania launched a Web site on YouTube earlier this year devoted to breaking down negative stereotypes of Arabs and Muslims.
"I want the people to know the real Arab world, unedited, unscripted, unfiltered," said the queen in one of her videos.
The Jordanian government's moderate politics has made the country a sort of diplomatic "Middle East Lite" for the U.S. as well.
Jordan, which signed a peace deal with Israel in 1994, is one of America's most reliable allies in the region and rarely adopts controversial positions on issues such as the Israeli-Palestinian crisis or the Iraq war.
A large number of Jordanians in Amman speak at least a little English, which makes the transition easier for Americans who come to the country to learn Arabic for the first time. Also, many signs in the country are posted in both English and Arabic.
Even the country's summer weather is fairly moderate, a rarity in a region where temperatures regularly soar above 100 degrees Fahreinheit.
"The lovely climate is the main reason I came here. But the people are also very welcoming," said Mariam Shaheed, a Texas native who came to Amman over the summer to improve her Arabic.

From Yahoo News "An AP report"
http://news.yahoo.com/s/ap/20080902/ap_on_re_mi_ea/jordan_mideast_lite;_ylt=Alpp.s5BFMMfUmWVsBHpRUxvaA8F