Summary from the Journal Expanding Trade Financing Opportunities Through Islamic Finance

Summary From The Journal

Expanding Trade Financing Opportunities Through Islamic Finance

This journal have overview of Islamic finance as a financial instrument, the trade pattern with Muslim majority countries, and how financial institutions in the United States using Islamic financial system to boost American exports.

Islamic financial system is a financial service that implements the elements of the teachings by Islam through trade, savings and credit instruments. Generally, these services like the services used by the conventional financial system, but the value and application of lawful and prohibits elements emphasized. Effects faced by the conventional financial system is vulnerable to high interest payments that may be declared collapse, which provides rent and expenses to the parties involved.

This Journal also display size of the Islamic financial markets, according to the Islamic Financial Services Board, the management of assets under finance system to be around $ 700 billion and continue to thrive beyond the conventional financial system. Muslims account about 21% of the total population of the earth. Despite rapid growth, but the economy of the Islamic countries showed only 8% of global GDP. This shows that there are many opportunities that are presented in Islamic financial system.

Islamic commercial markets include trading, deposits, rentals, properties, capitalization, and it is much focus in the Middle East and South Asia. Islamic financial system is crucial to the conventional financial institutions as financial system according to conventional international trade, but the overall Islamic financial market to open new and more secure.

The author states that there are only a few of financial instrument and market potential to the extent provided by Islamic finance is still limited at first but has grown and expanded and includes bonds, shares, share capital. The author also states some of the relevant structures in the Islamic...