A Study On Islamic Finance From The Perspective Of Globalization

Islamic finance is a financial industry in accordance with the requirements of Sharia law,which was born in 60s and 70s of the 20~thh century.With the changes in the global political and economic environment,Islamic finance has experienced three modern transformations,and has become an international financial model covering various areas such as banking,insurance,bonds,investment funds,scaling up to trillions of dollars,spreading in more than 70 countries around the world,and providing financial service to more than 40 million customers.In recent years,under the trend of economic globalization,the political and religious connotation,economic and financial functions of Islamic finance,and its possible impact on the global economy,has aroused extensive attention.Based on the author's academic background of Arabic language and culture,and using the theory of globalization,this paper creatively explores the issue of Islamic finance starting from the linguistic and dogmatic perspectives.From the two aspects of theory and practice,using religious,historical,economic,legal and other aspects of knowledge,the paper tries to figure out the development trajectory of Islamic finance,to clarify the development of Islamic finance in the context of globalization,and to look forward to the prospects of the development of Islamic finance in the context of globalization,which is illustrated by the trend of"integration"and"diversity".This paper is composed of seven chapters.Chapter one:introduction.The introduction mainly puts forward the reasons and illuminates the significance of studying Islamic finance from the perspective of globalization,rounds up and combs the research status quo the domestic and foreign scholars have accumulated around this theme,and makes certain comments on it.The introduction also makes a brief explanation of the research train of the thoughts,the basic logic,the research methods,the frame of the content,and the main initiatives of the paper.Chapter two:the origin of Islamic economic thought.This chapter as the foreshadowing of following chapters traces the theoretical origin of Islamic finance,showing that the Islamic economy as a kind of moral economy,attributes universal moral values such as fairness,justice,moderation,cooperation and altruism to economic behavior.The two famous prohibitions in Islam on riba and gharar are exactly based on the consideration of the moral values of trade fair and social justice.However,Islamic finance in practice emphasizes too much on the outward forms Islamic economic prohibitions,excessively highlights differences between its economic model and other models,and ignores the inherent meaning of Islamic economic principles and its universal values.Chapter three:the formation of Islamic financial system and its transformation under the influence of globalization.This chapter first makes a brief review of the history,indicating that of the backwardness of the Islamic world in modern times led to a revival of traditional ideas.The discussion of Islamic economic thought by the Islamists provides a theoretical basis for the emergence of Islamic finance.Since the50s and 60s of twentieth century,the Islamic countries in the world have been independent,creating conditions for the development of the Islamic finance industry.Then the chapter analyzes the background of the Islamic finance's first big development:in the 60s and 70s of last century,the rise of Islamism oil prices,the surge of oil price,and the trend of mixed operation in the international financial industry provides an unprecedented opportunity for the development of Islamic finance.Finally,the chapter analyzes the transformation of Islamic finance in the context of the new global political economy,which is characterized by diversity,multi-level,and integration with traditional finance.Chapter four:modern Islamic financial products and services.Using comparative method,this chapter offers detailed introduction of Islamic financing tools,products and services in banks,bonds,stocks,insurance,foreign exchange,funds and other financial markets from the financial and legal aspects.By paraphrasing the main financing instruments of Islamic finance from the linguistic and dogmatic perspectives,analyzing in detail the specific application of financial instruments in the current practice,the author points out that Islamic finance is committed to replicate the substantive functions of contemporary financial instruments and institutions in Islamic classical contract forms such as sale,lease and partnership.This increases the transaction costs,reduces the economic efficiency,and makes the Islamic finance largely becoming the replica of traditional finance,failing to reflect the essence of Islamic economic spirit,which is not conducive to the sustainable development of Islamic finance.Chapter five:the challenge of Islamic finance in the background of globalization.This chapter analyzes the challenges faced by the development of Islamic finance under the background of globalization from the aspects of external competition and internal operation management.This chapter points out that,under the background of financial globalization,the biggest challenge facing Islamic finance is to integrate into the global financial system,while reflecting its characteristics that enable its competition with the conventional financial industry,which needs digging its economic value and social value,as well as showing its flexibility,diversity and adaptability.Chapter six:the interaction between Islamic finance and globalization and its future development.This chapter points out that Islamic economy always has its adaptability and variability.The development of Islamic finance reflects the trend of integration and diversification in the globalization process.In the context of financial globalization,Islamic finance can take equity financing,micro finance and other aspects as breakthrough points,to promote financial innovation and financial globalization,to achieve development goals.Chapter seven:conclusion.This chapter summarizes the development history,characteristics,difficulties and prospects of Islamic finance.Based on the analysis of the previous chapters,the following conclusions are drawn:to integrate into the global financial system,and to coexist while compete with traditional finance,Islamic finance should not only rely on propagating its uniqueness and superiority in religion,but discover and reveal the spirit core of Islamic profit and risk sharing(PLS),in order to be the traditional finance's useful supplement,and to promote the development of the global economy and the improvement of human well-being.It is worth mentioning that a large number of Arabic transliterated terms exist in the non-Arabic literature of Islamic finance.The main reasons are,first,the connotations of these words are relatively rich and has evolved,so it is hard to cover the connotations of these words by using one or several words in foreign languages.Second,in their financial practice,Islamic financial institutions directly use the vocabularies mentioned in Islamic classical jurisprudence,to show their correspondence with the requirements of Sharia law.In order to reduce the interference of reading,this article will give a detailed explanation of these words when they first appear,and it also includes a glossary and an index at the end of the text.It is considered to be one of the innovations of this paper.