Tag Archives: Financial Institutions

Economic Benefits of Zakat on Stocks

Salman Ahmed Shaikh Some Islamic scholars opine that investment in stocks should be subject to wealth Zakat and capital gain/dividend income from such investments must also be subject to wealth Zakat. The economic effect of such a ruling is that … Continue reading

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Do Islamic Banks Cost More in Pakistan?

Salman Ahmed Shaikh There are 5 full-fledged Islamic banks operating in Pakistan and more than 15 conventional banks with Islamic banking branches. The growth in Islamic finance industry has been consistently impressive. Moreover, the share of the industry in the … Continue reading

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An Alternate System of Insurance in an Islamic Economic Framework

Salman Ahmed Shaikh In conventional insurance, element of interest and gambling makes it unacceptable under Islamic principles. The premiums paid to the insurance company by the people are invested in interest based financial instruments and from those funds, compensation is … Continue reading

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Problems with Inflation Indexation of Loans

Salman Ahmed Shaikh In past, some scholars have proposed to index financial loans in inflationary periods with some inflation index. In this article, we analyze the potential problems with this proposal. Problems from Applied Perspective If this proposal is suggested … Continue reading

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