The Islamic Mortgage: Paradigm Shift or Trojan Horse?

Sheikh Haitham al-Haddad and Tarek el-Diwany have an interesting post on Islam21C about the current state of Islamic finance.

Although we conduct a purely contractual examination of the issues, it is important not to forget the socio-political context of the discussion. Muslims in the West are attempting to implement certain elements of Shari`ah within an environment that is frequently inhospitable, and the formulation of an appropriate strategy is therefore rather complex. The question is not limited to whether particular financial products are contractually valid. Wider concerns are also in play. For example, is it permissible to establish an Islamic bank that initially has some dealings with interest if the intention is eventually to become interest-free? Should we be content with a structure in which an essentially un-Islamic industry accommodates some Islamic products? Or should banking as an industry be avoided until a completely interest-free opportunity presents itself? If so, how will Muslims satisfy their banking needs in the meantime? Perhaps most fundamental of all, is the Western model of Islamic banking and finance something that can be ‘Islamised’ in the first place?

3 comments ↓

#1 E. Mariyani on 12.17.06 at 1:46 am

On superficially-Islamic banking in Australia, see ABC Radio National’s Background Briefing.

#2 Baybers on 12.17.06 at 8:00 am

/2006/10/.....australia/

#3 Tobias on 12.22.06 at 8:34 pm

is Islamic banking here in Australia anything more than a scam?

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