Business Ethics in Islam
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Business Ethics in Islam

Abbas J. Ali

The book is the most original and comprehensive treatment of business ethics in Islam. It explores the thinking of early Islamic scholars on ethics, whilst encompassing the modern developments in the field. It is aimed at fostering discourse on business ethics by offering a framework for exploring a wide range of ethical issues and dilemmas that arise in the marketplace and raising ethical awareness and sensitivity of various market and non-market players. The book enables researchers to use Islamic ethical principles in advancing research and offers practical solutions to rising ethical problems. Furthermore, the book enables business people and policymakers to acquire the requisite outlook and understanding for the application of business ethics and guides readers to draw useful implications.
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Chapter 6: The ethics of banking and financial services

Abbas J. Ali


The historic growth of Islamic banking in various parts of the world has brought to the surface certain financial concerns. These concerns range from the validity of Islamic financial instruments to the nature and challenge Islamic banking faces in a free market economy. The allure of Islamic financial instruments is real and in response conventional commercial banks, like Citigroup, have begun to offer Islamic financial services. Simply put, this is because rising segments of customers demand them. These particular segments are either driven by spiritual, economic, safety, or psychological reasons or, most likely, Muslims in the West who seek a kind of spiritual peace of mind or who view religiously guided financial transactions as a means to minimize doubt about the legitimacy of their financial affairs. In countries with Muslim majorities, the Islamic financial sector has experienced a dramatic increase in the number of institutions and numbers of products they offer, as many people find that sector more attractive than conventional banking. In Malaysia, for example, the rate of growth in Islamic banking is between 20 and 25 per cent (Yousef, 2011a). In Pakistan, Islamic banking shares about 10–11 per cent of the market and is expected to reach 22 per cent by 2020 (Rizvi, 2013).

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