THE NEWS: KARACHI: Many countries in the world are promoting Islamic finance, including Islamic investment instruments (3Is), to cater to the growing demand for Islamic modes of financing and banking.
“Introducing innovative Islamic products in the financial sector has become necessary, as there is increasing demand for Shariah-compliant products, especially the 3Is, in both developed and developing countries,” said Joseph Tan, an economist at Global Research, Standard Chartered Bank.
There is now growing demand for the 3Is in the United States, the United Kingdom, Malaysia, Singapore, Pakistan, many of the Middle Eastern countries and India for the 3Is. The current world market for Islamic financial products is estimated around 300 billion US dollars
Experts say Islamic investment products are Shariah compliant. The 3Is are attractive for investors who want a handsome return on their investment or want to acquire loans in cash or kind without the string of Riba (interest) attached to transactions.
Riba has no place in Islamic banking and other Islamic modes of financing. With a Muslim population of almost 95 per cent, according to the 1998 census, Pakistan introduced Islamic Banking Policy in December 2001. In Pakistan, the banking spread of Islamic banks is higher than that of the conventional banks. The banking spread in conventional banking on an average is 7.2 per cent, and in Islamic banking it is 8.7 per cent. Islamic Investment Instruments >>> By Salman Siddiqui
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