The Shariah-compliant credit cards are becoming increasingly common in many countries.
"According to Brian Riley, a research director at TowerGroup, a financial services research firm based in Needham, Mass., Muslims constitute almost 24 percent of the world's population, and he estimates that total assets in Shariah-compliant banks will hit $1 trillion by 2011" (Read more: http://www.creditcards.com/credit-card-news/shariah-compliant-credit-cards-1273.php#ixzz43hAlz28i)
many Islamic banks are now involved in these Islamic credit cards in GCC Region, UK, USA, and more importantly in Malaysia (see Noor, A.M. and Azli, R.M., 2009. A review of SharENah compliant instruments for Islamic credit cards as adopted by Malaysian Financial Institutions. International Journal of Monetary Economics and Finance, 2(3-4), pp.221-238). instead of charging an interest "Riba", the customer is charged a subscription fee periodically
These efforts are apparently an attempt to utilize the huge Islamic compliant-assets worldwide. however, many people are still skeptics about the substance of these credit cards and the extent of its significance.
to what extent do you think that these Islamic instruments can contribute in the inclusion of Muslims in the financial system? and is it really Shariah-compliant?
Dear Saed Sulub. I am not sure whether my comment is relevant. In Malaysia, not everybody can apply for credit card because there are some criteria to be fulfilled before an applicant are considered for the card. For example to apply for a platinum credit card the applicant should have a minimum income of RM24000 per annum.
Different products are used while structuring Islamic credit cards.
You may read the attached Shariah Resolutions of SAC of the Central Bank of Malaysia: http://www.bnm.gov.my/microsites/financial/pdf/resolutions/shariah_resolutions_2nd_edition_EN.pdf
See specifically, page 148 onwards. There is ample justification for the products used in Islamic credit cards in Islamic finance from the Shariah perspective.
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