nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒03‒01
three papers chosen by
Mohamed Mohamed Tolba Said

  1. A Contextual Analysis of Riba under the Framework of Exchange By Sultan, Shahid
  2. Fifty Muslim-majority countries have fewer COVID-19 cases and deaths than the 50 richest non-Muslim countries By Mahayosnand, Ponn P; Gheno, Gloria; Sabra, ZM; Sabra, DM
  3. Summarizing Online Conversation of Indonesia Tourism Industry using Network Text Analysis By Andry Alamsyah; Sheila Shafira; Muhamad Alfin Yudhistira

  1. By: Sultan, Shahid (Attock Construction & Finishing Services)
    Abstract: Riba is not only one of the most debated terms in modern literature about Islamic economic systems but is also the most misunderstood one. The understanding provided by the majority of modern scholars differs from the one provided in the era preceding the colonial age. Riba al Nasi’ah or Nasa’a that is a primary type of riba has been grossly misunderstood as interest. This not only resulted in confusion among scholars and students alike but also in a multibillion-dollar Islamic financial industry that is mired with suspicion and increasingly visible convergence with traditional finance. Riba al Nasa’a exists and invalidates certain kind of transactions from an Islamic perspective with or without the presence of a condition of payment of any kind of interest. The only form of exchange that is acceptable in Islam is an equivalent exchange, be it on the spot, credit, or a charitable financial accommodation.
    Date: 2021–02–20
  2. By: Mahayosnand, Ponn P; Gheno, Gloria; Sabra, ZM; Sabra, DM
    Abstract: Objective To determine the difference in the total number of COVID-19 cases and deaths between Muslim-majority and non-Muslim countries, and investigate reasons for the disparities. All Muslim-majority countries are considered partly or completely not free (in war), and 80% are LMICs (low- and middle-income countries). Methods The 50 Muslim-majority countries have more than 50.0% Muslims with an average of 87.5% Muslims. The non-Muslim country sample consisted of 50 countries with highest GDP while omitting any Muslim-majority countries listed. Their average percentage of Muslims was 4.7%. All data was pulled on September 18, 2020. To measure incidence of COVID-19, three different Average Treatment Methods (ATE) were used to validate the results. Results Non-Muslim countries had significantly more COVID-19 cases, 3-times that of Muslim-majority countries. Non-Muslim countries had 1.86-times more COVID-19 deaths than Muslim-majority countries. These percentages were obtained by applying the simulation method to ATE’s results. Conclusion Despite most Muslim-majority countries being poor and all considered partly or completely unfree, 34/50 (68%) countries had shown a decline in active COVID-19 cases. This study shows that Muslims’ practice of tahara (purity or cleanliness) is similar to many COVID-19 containment measures and tawakkul (trust in Allah) helps them remain resilient and hopeful during difficult unpredictable times, such as living through a pandemic. Developed countries can benefit from the knowledge learned in this study. Research should be conducted with Muslims in Muslim-majority and non-Muslim countries to further study the health benefits of adhering to Islamic practices, principles, and beliefs.
    Date: 2021–02–17
  3. By: Andry Alamsyah; Sheila Shafira; Muhamad Alfin Yudhistira
    Abstract: The tourism industry is one of the potential revenues and has an important role in economics in Indonesia. The tourism Industry brings job and business opportunities, foreign exchange earnings, and infrastructure development, tourism also plays the role of one of the main drivers in socio-economic progress in Indonesia. The number of foreign tourists visiting Indonesia increase cumulatively and has reached 10.41 million visits or an increase of 10.46 percent from the same period in the previous year. Government trying to increase the number of tourists to visit Indonesia by promoting many Indonesian tourist attractions.
    Date: 2021–02

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