An accurate islamic calendar for a flawless islamic capital market

Saksono, Tono (2009) An accurate islamic calendar for a flawless islamic capital market. In: the 3rd isdev international islamic development management, 28-29 Oktober 2009, Universiti Sains Malaysia, Pulau Pinang.

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Abstract

At-Taubah 36-37 in the Qur'an is a clear guidance for any Muslim to use the Islamic Calendar for his/her mundane and spiritual lives. However, Muslims all over the world tend to use the Gregorian calendar in lieu of the Islamic calendar due to the latter's high degree of uncertainty. As an Islamic calendar falls short roughly by 11.53 days per annum with respect to the Gregorian calendar, every 30 years of its operation of any Muslim enterprise also falls short by about one year in the payment of the corresponding tithe (zakat) if it uses the Gregorian calendar as its time base management system. As Islam has existed about 1,400 years, Muslims all over the world are now burdened by at least 40 years of unsettled zakat of the older generation if their zakat was calculated based on the Gregorian calendar. Rough calculation gives an estimated hypothetical amount of US$ 10 trillion of debt. Sadly, the burden is going on endlessly from one generation to the next. This paper shows that unless a drastic action is taken to apply an accurate Islamic calendar now, the next generation of Muslims will inherit the unsettled zakat of the current generation. A simulation using General Electric (GE) and Microsoft stock price for twenty years (1990¬ 2009) is addressed in this paper. If ten million of their shares are owned by a group of Muslims, they hence fall short to pay the corresponding zakat that ranges between US 150,000 and US$ 5 million (depending on its statistical annual price being used). In addition to that, in order to oversee the potential loss of zakat of the possession of precious metal, history price of gold for about twenty years is also used. A simulation of the possession of 1 million oz1 of gold shows that, the potential loss of compliant zakat according to shariah roughly stands at US$ 10 million. This brief simulation therefore demonstrates that the aforementioned hypothetical debt of US$ 10 trillion of the Islamic civilization might not be too away off. The use of an accurate Islamic calendar in shariah economy is therefore mandatory; otherwise the developed shariah economy is substantially flawed.

Item Type:Conference or Workshop Item (Paper)
Subjects:B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP160-165 General works on Islam
Divisions:Faculty of Technology Management, Business and Entrepreneurship > Department of Management and Technology
ID Code:1895
Deposited By:Khairunnisa Ahmad
Deposited On:04 Oct 2011 16:19
Last Modified:04 Oct 2011 16:19

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