Effect of interest rate and inflation rate on the islamic shares Dissertation

Effect of interest rate and inflation rate on the islamic shares listed in the united arab emirates - Dissertation Example The Shariah Principles, which dates back to almost fourteen hundred years ago, has put forward certain immaculate methodologies and customs pertaining to establishment of a financial system. These principles and ideologies can be applied even in the dynamic and robust global economic scenario of the twenty first century without any downside. The Islamic financial system strongly condemns the inclusion of interest in the transactions between the borrowers and the lenders and has labeled any such transaction as repugnant to the principles of Shariah or ‘Haram’. Following the same principles, not only such transactions are unlawful according to the principles of Islam, but investing in any of such companies and earning return form such are also unlawful. With the passage of time, the development of the Islamic financial institution started taking place at a rapid pace. The trend was not only confined to the Middle Eastern and Far East Asian countries, but the effects were f ar stretched to the European and the North American countries as well. The supporters of the conventional economic system soon realized that the rationale behind the Islamic financial structure and the concepts of an Islamic financial institution. Several major conventional banks have since launched various Islamic products and experienced impressive response from the individuals as well as from corporations. Shariah principles related to Islamic financial system not only provide guidance on the financial products pertaining to Islamic banking, but it has also issued pronouncements on how companies can regulate their operations and bring them in line in accordance with the laws of Islamic Shariah. Investing in the equity security of the Shairah compliant companies is allowed for the investors and the return earned on such investment is permissible and ‘Halal’. There are certain conditions which the company needs to implement in its operational and financial strategy in order to become Shariah compliant. The main The business of the company must not be prohibited as per the laws of Shariah If debt ratio of the company is higher than 33% of its equity capital, then buying the shares of such company is not permissible as per Shariah Islamic scholars have allowed the interest income to be less than 5% of the total income of the company for it to be permissible for investment Relationship between the interest rate and the inflation has been discussed at large in various economic literatures. Both of these variables are responsible for shaping the essential aspects of the economy such as monetary policy and regulating the supply and demand of several commodities. Various studies have been conducted in order to understand the relationship between the interest rate and the rate of inflation. It is generally considered among the economist that the nominal

Leadership photo narrative Essay Example | Topics and Well Written Essays - 750 words

Leadership photo narrative - Essay Example She couldn’t wait to get there. Lana was excited, confident of meeting expectations and thereby earning the love and respect of her new colleagues. Lana had been offered a job as a computer technician in a prestigious firm that prided themselves on employing and empowering the differently abled. They subscribed to the school of thought that believed in person-centric planning for the required service and support systems for their employees with disabilities and consulted with a highly acknowledged team of Human Services professionals. Life seemed to have so much to offer that lovely morning that Lana had quite forgotten the hard time she had had just some time ago when boarding the bus. Looking at Lana’s bright and happy face and twinkling eyes, no one could have suspected how severely challenged the young woman was. Her peculiar condition made every physical action a little battle in itself. Some strange muscular dysfunction made her a contradictory combination of a sharp and agile mind in a physically challenged body that labored to obey simple signals from her brain. What a struggle every step she took was! Only she knew how much courage it took to go on doggedly determined to achieve her objective- sometimes as commonplace as climbing the rather high steps of the bus. However, Lana had been lucky to have a great family and caregivers. Her parents and siblings together with her teachers at the special school she had recently graduated from had helped her become what she was today. Lana was a trained information technology or IT professional. At her computer and on the internet, she was a wizard and that was exactly what had got her this job in the city. But Lana had learned much more than merely computer skills. She had learned to accept a stranger’s helping hand appreciating his or her genuine concern instead of feeling humiliated. She had learned to ignore the pitying glances of others better-abled than she. Above all she had