Description
- Compare and contrast Sharia banking and Saudi financial management practices with Western banking and financial management practices. What difficulties might a Saudi company encounter as it does business in countries that do not follow Sharia banking and financial management practices?Your well-written paper should meet the following requirements:
- Be 4-5 pages in length, which does not include the title page, abstract, or required reference page, which are never a part of the content minimum requirements.
- Use APA style guidelines.
- Support your submission with course material concepts, principles and theories from the textbook and at least two scholarly, peer-reviewed journal articles.
- cover all the requirements .
Explanation & Answer
Attached.
Running head: FINANCE MANAGEMENT AND ACCOUNTING
Finance Management and Accounting
Name
Saudi Electronic University
1
FINANCIAL MANAGEMENT AND ACCOUNTING
2
Finance Management and Accounting
Banking as an institution is dating back to the 2nd Century BC. The ancient banking came into
place during the agrarian revolution. The resources were not enough for formal trade, and hence
the various institutions saw the need to set up banks. However, the institution did not involve
money. Instead, there was the banking of items such as cattle, gold, grains, and so on. Temples
and palaces were the safest places for storage. Priests and monks served as the "tellers" at that
time. The banking institution later gained significant changes due to civilization. Subsequently,
different fronts embraced separate systems of banking. The western banking system was adopted
by the European countries and numerous other non-Islamic states. Islamic states, on the other
hand, decided to practice Sharia Banking. This paper takes an in-depth look at the comparison
between the two approaches to banking.
At a glance, both western and Islamic banking systems have more or less the same goal and
purpose. The significant difference is that the Islamic system incorporates Sharia laws in its
banking operations. Both sides make an equal contribution to the economy with the distinction of
observing strict Islamic practices when it comes to Sharia banking. The different line is narrow
because the methods on both sides aim at more or less the same purpose. One of the primary
principles of banking is a commercial relationship between interest rates and banking. The Sharia
system involves religious practices in the order. The conventional/western policy also applies the
same principle but does not include spiritual matters. Otherwise, the difference gradually
becomes invisible as the world moves towards a better fi...
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