Comments on: Halal Certification for Financial Products http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/ Thu, 26 Aug 2010 02:21:12 +0000 http://wordpress.org/?v=abc hourly 1 By: Amal http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-32998 Amal Tue, 26 Jun 2007 02:17:21 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-32998 'How to be Islamic in business', <em>The Economist</em>: "Ensuring that financiers comply with sharia is becoming big business..." http://www.economist.com/world/africa/displaystory.cfm?story_id=9304369 ‘How to be Islamic in business’, The Economist:

“Ensuring that financiers comply with sharia is becoming big business…”

http://www.economist.com/world.....id=9304369

]]> By: Editor @ I J T E M A http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-21528 Editor @ I J T E M A Fri, 20 Apr 2007 00:31:18 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-21528 Assalamu 'alaykum wa rahmatullah I pray that you are in the best of health & imaan. This is a short message to notify you that this entry has been selected for publishing on <a href="http://www.ijtema.net" rel="nofollow">I J T E M A</a>; a venture to highlight the best of the Muslim blogosphere. To find out more about <a href="http://www.ijtema.net" rel="nofollow">I J T E M A</a>, and how you can further contribute, please click <a href="http://www.ijtema.net/about-ijtemanet/" rel="nofollow">here</a>. May Allah bless you for your noble efforts. Wa'salam Assalamu ‘alaykum wa rahmatullah
I pray that you are in the best of health & imaan.
This is a short message to notify you that this entry has been selected for publishing on I J T E M A; a venture to highlight the best of the Muslim blogosphere.
To find out more about I J T E M A, and how you can further contribute, please click here.
May Allah bless you for your noble efforts.
Wa’salam

]]> By: Mustafa http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-21037 Mustafa Tue, 17 Apr 2007 02:28:02 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-21037 Fatima, that is what I was thinking. Just where do you draw the line? Fatima, that is what I was thinking. Just where do you draw the line?

]]> By: Club Troppo » Missing Link http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20974 Club Troppo » Missing Link Mon, 16 Apr 2007 14:38:06 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20974 [...] Amir at Austrolabe discusses the potential for halal certification for financial products. This raises an interesting question especially for libertarians. If the market can be trusted to certify halal (and kosher) products which are pretty important issues for the devout, why not other things? Why not use certification as a less restrictive and anti-competitive alternative to many regulations as a means of addressing information asymmetries? [...] [...] Amir at Austrolabe discusses the potential for halal certification for financial products. This raises an interesting question especially for libertarians. If the market can be trusted to certify halal (and kosher) products which are pretty important issues for the devout, why not other things? Why not use certification as a less restrictive and anti-competitive alternative to many regulations as a means of addressing information asymmetries? [...]

]]> By: Fatima http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20969 Fatima Mon, 16 Apr 2007 13:40:25 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20969 If you applied risk to paying for a service and then not using it couldn't you apply that to any sort of membership? Gym membership? Library membership? Internet subscription? You might use it and you might not or you may only use it partially. If you applied risk to paying for a service and then not using it couldn’t you apply that to any sort of membership? Gym membership? Library membership? Internet subscription? You might use it and you might not or you may only use it partially.

]]> By: Mustafa http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20922 Mustafa Mon, 16 Apr 2007 07:18:18 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20922 Ambulance membership was something I was thinking about as well. That involves a risk, just like insurance. Ambulance membership was something I was thinking about as well. That involves a risk, just like insurance.

]]> By: Amir http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20906 Amir Mon, 16 Apr 2007 02:54:37 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20906 Firstly, I'm not giving a fatwa or saying these schemes are allowed but merely asking a question because, on the face of it, they could be seen as a service contract. Anyway, the difference is that, under the schemes I mentioned, you pay a fee each year and if you have an accident, you take your car to a depot and they return it to you fixed. They don't give you any money and you don't even know how much the car cost to be fixed because the insurance company subcontracts the repairs to a mechanic/panel beater of their choosing. For this reason, it could be seen as payment for a service. Compare this to ambulance membership or roadside assist. In both of these there is an element of uncertainty because you don't know whether you will end up needing them (and probably hope that you won't) but you pay the fee anyway. This is the sort of thing I wish our scholars would look into. Firstly, I’m not giving a fatwa or saying these schemes are allowed but merely asking a question because, on the face of it, they could be seen as a service contract.

Anyway, the difference is that, under the schemes I mentioned, you pay a fee each year and if you have an accident, you take your car to a depot and they return it to you fixed. They don’t give you any money and you don’t even know how much the car cost to be fixed because the insurance company subcontracts the repairs to a mechanic/panel beater of their choosing.

For this reason, it could be seen as payment for a service. Compare this to ambulance membership or roadside assist. In both of these there is an element of uncertainty because you don’t know whether you will end up needing them (and probably hope that you won’t) but you pay the fee anyway.

This is the sort of thing I wish our scholars would look into.

]]> By: Hood http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20905 Hood Mon, 16 Apr 2007 02:49:12 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20905 As far as i recall it is the opinion of Abu Hanifah himself. Legitimacy is possible, it being an ijtihadi issue, and there is always a need for more research As far as i recall it is the opinion of Abu Hanifah himself.
Legitimacy is possible, it being an ijtihadi issue, and there is always a need for more research

]]> By: Mustafa http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20903 Mustafa Mon, 16 Apr 2007 02:39:09 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20903 Amir, How do the products at AAMI and GIO, as you referred to, differ from those of other insurance companies? Also, it still is a form of gharar and gambling, even if you don't receive a payment, isn't it? Amir,

How do the products at AAMI and GIO, as you referred to, differ from those of other insurance companies? Also, it still is a form of gharar and gambling, even if you don’t receive a payment, isn’t it?

]]> By: Amir http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/comment-page-1/#comment-20901 Amir Mon, 16 Apr 2007 02:27:08 +0000 http://austrolabe.com/2007/04/15/halal-certification-for-financial-products/#comment-20901 Hood, have you looked into the view, advanced by some of the ahnaf that the narrations about al-Abbas's transactions in Makkah mean it is allowed to deal in riba in non-Muslim societies? There is always a tendency to scoff and denounce these views out of hand but is it possible that there is some legitimacy to them? Hood, have you looked into the view, advanced by some of the ahnaf that the narrations about al-Abbas’s transactions in Makkah mean it is allowed to deal in riba in non-Muslim societies? There is always a tendency to scoff and denounce these views out of hand but is it possible that there is some legitimacy to them?

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