Islamic Banking and Finance

Western business, banking, and personal investment models focus on obtaining profit and storing wealth through the accumulation of interest, dividend payments, or the sale of negotiable futures—often linked to individuals or groups that have no vested interest in the success or failure of the investment scheme. Social responsibility or community investment and development take a derived role in the individualistic Western investment model requires complex finance and capital structure equations to obtain the highest return on investment for the individual or organizational shareholders. In addition, because of its lack of a tangible asset base, the Western model is primarily projection driven and subject to the volatility of political instability, changes in taxation policies, and social undercurrents. This cycle is compounded by the expansion of the global economy and the proliferation of economic dependence, labor exploitation, and exportation of domestic economic stability in favor of short-lived corporate or personal profits that find themselves eroded by inflation and an expatriated asset base, but it appears that the Shariah compliant Islamic finance provides a solution.