Why non-Muslims are converting to sharia finance

Post by tinus_hn » Tue, Oct 23, 2018, 8:26 AM UTC

projectramo wrote: post #94

Mengkudulangsat wrote: post #66

I had the opportunity to translate technical documents for both conventional and sharia financial products a few years ago, and I find the market fascination of them mind-boggling. These products seemed to incorporate convoluted jargon and concepts which dramatically increased complexity but at the same time, produced no extra utility for end-users. On top of that, the addition of ongoing shariah-compliance introduce…

This is my take: Interest is just another term for the time value of money. The time value of money is a fact of life as long as there are opportunities in the world to invest in something that is productive. Therein lies the problem: you can't explicitly charge interest, but you are still subject to the time value of money. The only option is to describe/disguise the time value of money in terms that don't bring up…

Post by [deleted] » Wed, Oct 24, 2018, 12:02 AM UTC

tareqak wrote: post #21

my_username_is_ wrote: post #10

Very interesting--I had never heard of this before. It seems the higher interest rate is predicated on finding investors who want to take loans at higher-than-market-clearing rates. Does anyone have any insight into why non-Muslims are getting loans through these banks? I don't see how this scales to consistently provide higher returns, especially as more money moves into this system. Are tobacco and alcohol related…

Maybe some non-Muslims don't want their money to go into arms, alcohol and tobacco? The Economist also forgot to mention gambling too. Edit: there -> their