With some exceptions, the 1983 Penal Code of Sudan, containing hudud provisions, was applied to both Muslims and non-Muslims, including those living in the south, now an independent country. Among the many weaknesses of the hudud legislation in Sudan were the extensive powers given to courts to punish people at their discretion based apparently on the Islamic penal law principle of ta’zir (discretionary punishment intended to deter) even if a given act was not identified as a crime in the Penal Code........... Download the full article in pdf attachment (below)

Liquidity risk is a risk that commonly arises in conventional banking. It is the risk that a bank may be unable to meet its financial obligations due to a shortage of cash (liquidity). Liquidity risk arises from the way banks operate. Banks intermediate between parties with surplus capital (savings) and parties that are short of capital (borrowers). In this way banks help to channel  funds from areas  where a surplus of funds exists, to areas where a shortage of funds is experienced.  They do this by borrowing from depositors and lending the same funds to borrowers, while keeping only a small amount of cash on hand to meet unexpected withdrawals.......... Download the full article in pdf attachment (below)

“Benchmarking” in Islamic finance is a method of predetermining the magnitude of profits paid by issuers of Islamic sukuk (certificates of investment) to investors. Benchmarking is done by linking investors’ profits to an interest rate, usually Libor (London Interbank Overnight Rate). Normally, a few basis points are added to the reference interest rate to arrive at the benchmarked profit rate.......... Download the full article in pdf attachment (below)

Literally, riba means “increase.” However, riba is commonly translated into English as “interest.” Riba is mentioned in the Qur’an in 30:39, 4:161, 3:130, 2:275-276, and 278. Most commentators agree that riba is a sum of money a lender claims from a borrower on top of the principal amount of a loan, as a reward for extending the loan, or for allowing more time for repayment. It does not matter whether the additional amount is small or large; even the smallest amount is still riba because it constitutes an “addition.”.......... Download the full article in pdf attachment (below)

When Islamic finance first appeared in its modern form in the 1990s, expectations were high. It was hoped that Islamic finance would provide a more stable – and just – alternative to the conventional system, based on riba and characterised by roller-coaster cycles of boom and bust. Islamic finance would avoid the pitfalls of conventional finance, among them the rise of large and growing levels of debt – public and private.......... Download the full article in pdf attachment (below)

Lending at interest has several significant, albeit infrequently noted, shortcomings. It contributes to inflation and widens the gap between the wealthy and the less well to do. Interest-based lending adds to inflation in at least two ways. A substantial amount of spending is financed by money borrowed at interest. Household, corporate and government debt levels are at all time highs in many countries. The extra demand for goods and services, made possible by borrowing, adds to “demand pull” inflation.......... Download the full article in pdf attachment (below) [revised 21April2012]

The fundamental inefficiency of interest-based financing means that the typical economy will unavoidably operate at below full employment capacity. In other words, it will only be able to produce a lower than potential output. This signifies a degree of waste. As a result of artificially depressed levels of overall production resulting from the utilisation of interest-based financing,........Download the full article in pdf attachment (below)

Stability is a property of persons, objects or systems. It is the capacity of a person, object or system to resist change. When we describe a person, object or a system as stable, we mean that the condition, position, or composition of the person, object or system is unlikely to change or change easily. Stable does not mean static, as change can take pace in a stable way. Stability can be broadly contrasted with chaos........Download the full article in pdf attachment (below)

Ownership is the right to possess, use, sell, donate or give as a gift any asset (property) belonging to a person known as the “owner.” Ownership (milkiyah) is not the same as possession (qabd), as it is possible to own something without possessing it, or to possess something without owning it. Children may “own” items such as toys. However, from a legal point of view, the parents are the legal owners of their children’s belongings.......Download the full article in pdf attachment (below)

Equitable sharing of wealth brings a number of advantages. When wealth is shared equitably – in other words justly – all members of society are able to gain and keep some wealth. Thus, everyone has a reason to become and remain a content member of that society. This contributes to peace. A community is bound together more firmly when wealth is shared than when it is distributed unevenly......Download the full article in pdf attachment (below)