Re: Sharia and Economy split from: Why do US officials say such things in Pakistan?
This is a great topic!
I believe that Sharia Complaint Banking is still nascent considering the potential in the Muslim majority areas of world.
Mad Scientist did a great write up on the mortgage side of Sharia Compliance. I would like to add a few words regarding investments.
I know a London based fellow who used to work for Goldman Sachs, but he is now operating a sharia compliant fund which (ma'shallah) has done quite well. Although we don't talk business his investment philosophy is very much grounded in the value approach towards investing. He does not invest in companies engaing in haram activities such as gambling, alcohol, or XXX oriented products. Furthermore, he has invested in places like Lebanon, Iran, and Sudan -- areas where western fund managers have traditionally shunned due to high risk. As I am sure the economics oriented readers will recognize: High risk = high returns if invested properly.
On a personal note, as a conservative Muslim who hopes to do well in life, I do not see following the sharia as an impediment towards economic and material success. After all, our great Prophet (PBUH) was a merchant par excellence. Also many Muslims have done well in life without abandoning their religious duties.
In my family, we have a tradition of pooling our funds together to buy houses, start business, with loans at zero interest. Ofcourse we also rely on each other for economic support. Due to my fathers support of his brothers, I can go to any major city in Europe and find a place to stay with family. Likewise, we have had family members work in my fathers businesses that he is running. Our tribe has done well (with the grace of Allah) despite coming from a humble origin.