Islamic finance Essay Example | Topics and Well Written Essays - 3000 words

Muslim pay - Essay ExampleIn this regard, the Islamic financial musical arrangement with the care of macroeconomic models is able to conduct their operations effective in the Islamic economy.Islamic financial system came into existence in the mid-1980s wherein this system was practiced mostly in the Muslim communities that eventually nurtured trade and commercialised activities in numerous nations. Islamic merchants became the brokers of trade related activities in Spanish and Mediterranean regions, which helped in promoting Islamic finance amid European financiers and capitalists. In the modern day context, Islamic finance has made a ample impact in various parts of the world, as it has been promptly growing in the financial sector. Islamic finance is not just limited to Islamic nations, but it has spread to other nations wherein the Muslim conjunction is quite large. It has been identified that there are over 100 financial institutions using Islamic finance and the system is presently practiced in more than 45 nations. Industries using Islamic finance confine witnessed a growth rate of 15% in their annual turnover from the estimation of the last flipper years financial performances. Accordingly, it has been witnessed that the markets annual turnover has grown to about 70 one thousand million USD as compared to 5 billion USD in the year 1985. It has been further estimated that markets, which use Islamic finance get out witness a growth of 100 billion USD by next century. In reality, Islamic finance commenced successfully from the time when the Islamic nations obtained surplus profit in their oil exporting businesses. It will be worth mentioning that anatomic and macroeconomic reforms in the financial system, privatisation of industries, assimilation of the financial markets and liberalisation of capital take a shit cemented the growth of the Islamic financial system (Iqbal, 1997). The paper is primarily intended to summarise the chapter The Financi al placement and Monetary Policy in an Islamic