Towards an Islamic indicator for transactions in the financial and monetary market as a substitute for the Riba interest indicator
Prof. AbdelHamid Al Baali
Professor of Islamic Law – Kuwait International Law School
Abstract:
This research covers an important initiative that the researcher has suggested in the forum of Islamic economic doctrine, organized by the department of Islamic affairs in Dubai government in March 2015. It is about the establishment of an Islamic indicator for profit in the Islamic financial market which is the real honest amount that measures the quality of performance and assesses its professionalism. This would form an effective substitute for the common Riba interest indicator.
The researcher exposed his initiative in four sections divided into two main titles:
First- The real practice and the importance of the indicator as a tool of criteria measurement used in setting prices for future transactions and measuring the capital cost in addition to studying the economic feasibility of investment projects.
Second- (1) The seventeen foundations of the Islamic profit indicator, (2) the main features of the suggested framework for setting out the Islamic profit indicator which are fourteen framework indications to set out the profit indicator, and (3) the main doctrinal principles that the profit indicator is based upon.
The researcher concluded that the Islamic nation needs institutional and evolving economic, financial and banking doctrines supported by financial and economic systems that go in parallel with the need for an indicator to measure performance and assess competency and professionalism and to replace the Riba interest.