The Drives behind Extension of Islamic Financing Models towards local Businesses [low and average earners] in Connection with Shariah Governance and National Regulations

Abstract

Purpose: 

The purpose of this research paper is to engage private sector of low or average earners to opt different business models working in full conformity with shariah standards along with fulfillment of nation’s regulations to enhance their profitability, productivity present the importance of Islamization framework for Private Micro-Financing Practices which violates the divine rulings of financial matters. Indeed, one of the core responsibilities of the government to provide opportunities for public to startup different businesses but to ensure their security and to protect them from heavy losses is too the core liability. The core basis to ensure the businesses protection is to streamline it with Shariah Rulings along with Standardize Measures. The paper focuses on extension of Islamization Framework for Private Micro-Financing Practices.

Research Design/ Methodology:

This paper is conceptual and has theoretical aspect and the result will be provided on the basis of related literature, In-vogue Islamic Banking procedural documentations regarding different modes and shariah based texts.

Results and Findings:

The paper will emphasis firstly on describing the practices of different Islamic Banks which are claiming that their policies and practices are in full conformity with Shariah Standards. Their Inter-Banks and Intra-Banks transactions are entirely supervised by the specific shariah boards which consists of great Shariah cum Economic Experts. The paper will compare these financial institutions with private Micro Financial Model in order to portray the streamlining pattern and procedure of firm connection between them. Thirdly, paper will present the extension in scope of shariah governance with intension to create the generalize framework to bring other stakeholders under the Umbrella of Shariah Standards. 

Conclusion:

The Shariah principles has great extended scope to accommodate all sort of Businesses whether operates at Macro or Micro Level, associated with individuals or connected with public sector collective property along with having strength and potential to Islamize the Products and Services if proper Islamization Framework executed with its true Spirit to make the system free from disorders and financial disastrous what the humanity had seen in 20^th Century in the form of different Financial Crises.  

The Drives behind Extension of Islamic Financing Models towards local Businesses [low and average earners] in Connection with Shariah Governance and National Regulations