Finance of International Trade in the Gulf.

• Superior document: Arab and Islamic Laws Series ; v.9
• Author: Al-Suwaidi, Ahmed.
• Place / Publishing House: Boston : : BRILL,, 1994.; ©1994.
• Year of Publication: 1994
• Edition: 1st ed.
• Language: English
• Series: Arab and Islamic Laws Series
• Physical Description: 1 online resource (358 pages)

Table of Contents

Intro -- Title Page -- Copyright Page -- Table of Contents -- Acknowledgements -- Abstract -- Bibliography -- Table of Arabic Cases -- Table of non-Arabic Cases -- Table of Codes, Rules and Regulations -- Abbreviations -- Glossary -- Interviews -- INTRODUCTION -- A. The Problem -- B. The Purpose of the Study -- C. Materials and Sources -- D. Organisation of the Thesis -- E. An Outline of the Gulf Arab States -- 1. Location -- 2. Area -- 3. Population -- 4. Climate -- 5. Strategic Importance of the Arabian Gulf -- 6. Economy of the Gulf Arab States -- CHAPTER 1: HISTORICAL DEVELOPMENT OF THE BANKING SYSTEMS IN THE GULF ARAB STATES -- A. Conventional Banks -- 1. Bahrain -- 2. Kuwait -- 3. Saudi Arabia -- 4. United Arab Emirates -- 5. Qatar -- 6. Oman -- B. Islamic Banks -- 1. Birth of Islamic Banks -- 2. Development of Islamic Banking System -- C. Conclusion -- CHAPTER 2: DEVELOPMENTS OF THE LEGAL SYSTEMS OF THE GULF ARAB STATES -- A. Historical Background -- B. Laws Relating to Banking and Commercial Transactions -- 1. Saudi Arabia -- 2. Kuwait -- 3. Bahrain -- 4. United Arab Emirates -- 5. Qatar -- 6. Oman -- C. Conclusion -- CHAPTER 3: DOCUMENTARY LETTER OF CREDIT -- A. Historical Development -- B. Definition -- C. Operation -- 1. Stages of Opening a Letter of Credit -- a. The Sales Contract -- b. The Application Form -- c. Notification -- d. Beneficiary -- e. Presentation of Documents -- f. Collection of Documents -- 2. Types of Letters of Credit -- a. Revocable -- b. Irrevocable and Unconfirmed -- c. Irrevocable and Confirmed -- d. Standby -- e. Transferable -- i. How to Transfer -- ii. Form of the Second Credit Transfer -- iii. Place, Period and Time for Transfer -- D. Conclusion -- CHAPTER 4: FINANCING OF INTERNATIONAL TRADE UNDER THE ISLAMIC BANKING SYSTEM -- A. General Review -- 1. Paid-up Capital -- 2. Deposit Accounts.

a. Current Account -- b. Savings Account -- c. Investment Account -- 3. Chargeable Services -- B. Cash Documentary Letter of Credit -- C. Islamic Methods of Finance -- 1. Mudaraba -- a. Historical Background and Definition -- b. Types of Mudaraba -- i. Restricted -- ii. Unrestricted -- iii. Conditions -- 2. Musharaka -- a. Historical Background and Definition -- b. Types of Musharaka -- i. Al-Abdan -- ii. Al-Wujuh -- iii. Al-Mufawadah -- iv. Al-Inan -- c. Financing the Letter of Credit Transaction -- d. The Legal Relationship in Musharaka Letter of Credit Transaction -- i. The Bank and the Customer (Partners) -- ii. The Partners to Musharaka and Seller -- iii. The Issuing and Intermediary Banks -- iv. The Intermediary and the Seller -- 3. Murabaha -- a. Historical Background and Definition -- b. Conditions -- c. Types of Murabaha -- i. Local -- ii. International -- - Import -- - Commodities -- D. Conclusion -- CHAPTER 5: LEGAL RELATIONSHIPS BETWEEN THE PARTIES TO THE MURABAHA -- A. The Relationship between the Customer and the Islamic Bank -- 1. Customer's Application to the Islamic Bank -- 2. Preliminary Agreement -- 3. Signing Promissory Purchase Contract -- a. Common Information in all Islamic Banks -- b. Information Which Varies from one Bank to Another -- 4. Signing the Murabaha Sale Contract -- a. Date of Conclusion -- b. Resale Price -- i. The Original Purchase Price -- ii. Additional Expenses -- iii. Freight Charges -- iv. Insurance Premium -- v. Profit in Murabaha -- c. Method of Payment -- i. Advance -- ii. Deferred -- iii. Monthly Instalments -- iv. Periodic Lump Sum -- 5. Security Provided by the Customer -- - default of the Customer -- B. The Relationship between Islamic Bank and Supplier -- 1. Contacting the Supplier -- 2. Contract with Supplier -- 3. Receipt of Goods -- 4. Risks of the Goods Requested.

C. The Relationship between Supplier and the Islamic Bank Customer -- D. The Relationship between the Islamic Bank and the Correspondent Bank -- E. Conclusion -- CHAPTER 6: FINANCE OF INTERNATIONAL TRADE IN PRACTICE -- A. Methodology -- 1. Design of Questionnaire -- a. Customer Questionnaire -- b. Interviews -- 2. Translation and Trial Use of Questionnaire and Interview -- 3. Subject Identification -- 4. Procedures -- B. Presentation of the Findings and Discussions -- 1. Coding Open-Ended Questions -- 2. Demographic Information -- 3. Opinion and Attitudinal -- a. Reasons for Dealing with the Banks -- b. Capability of the Banks to Handle Letters of Credit -- c. Reasons for Refusal to Open Letter of Credit -- d. Information Required Prior to Opening a Letter of Credit -- e. Business Relationship Preferred by Bank Customers -- f. Responsibility of Bank and Customer in the Event of Fraud or Defect -- g. Quality of Services in Both Banks -- h. Banking System and Reasons for the Customers' Preferences -- i. Lack of Federal Commercial Law and its Effects on the UAE Commercial Sector -- j. Miscellaneous Data -- C. Conclusion -- CHAPTER 7: THE PROBLEMS WHICH THE ISLAMIC BANKS FACE IN INVESTING FUNDS IN THEIR RESPECTIVE COUNTRIES -- A. Reasons for Investing in the International Market -- B. Main Problems Preventing Islamic Banks from Investment in most Countries -- 1. Political -- 2. Economic -- 3. Social -- 4. Legal -- 5. Scientific and Technological -- C. The Problems Faced by Shari'ah Committee -- D. The Problem of Maintaining Efficiency of Employees -- 1. The Ways and Methods of Appointing Employees -- 2. Integration Between Management and Employees -- 3. Evaluation of the Abilities of Employees -- E. Suggestion -- F. Conclusion -- CHAPTER 8: FRAUD IN INTERNATIONAL TRADE AS IT AFFECTS THE GULF ARAB STATES -- A. Historical Background and Definition.

B. Fraud in Documentary Letters of Credit -- 1. Bills of Lading -- 2. Commercial Invoice -- 3. Certificate of Insurance -- 4. Certificate of Origin -- 5. Certificate of Inspection -- 6. Packing List and Specification -- 7. Weight List -- 8. Health Certificate -- C. Non-Shipment of Goods -- D. Short Shipment of Goods -- E. Non-Compliance of Terms of the Letter of Credit -- F. Conclusion -- CHAPTER 9: COUNTERTRADE -- A. Historical Background and Definition -- B. Types of Countertrade -- 1. Simple Barter -- 2. Counterpurchase -- 3. Compensation -- 4. Offset -- C. The Functions of Countertrade by the Gulf Arab States -- D. Advantages and Disadvantages of Countertrade -- 1. Advantages -- 2. Disadvantages -- E. Legal Framework of Countertrade -- F. Suggestions -- 1. Points for the Importers -- 2. Points for the Exporters -- G. Conclusion -- CHAPTER 10: ELECTRONIC FUNDS TRANSFERS (EFT) -- A. Historical Background and Definition -- B. Types of Electronic Funds Transfer (EFT) -- 1. EFT in the United States -- a. Consumer EFT -- i. Point of Sale Terminals (POS) -- ii. Automated Teller Machines (ATMs) -- iii. Telephone Bill Payments (TBP) -- iv. Automated Clearing Houses (ACHs) -- b. Wholesale Electronic Funds Transfer Systems -- i. Federal Reserve Wire Network (FEDWIRE) -- ii. Bank Wire -- iii. Clearing House Interbank Payment System (CHIPS) -- 2. EFT in the United Kingdom -- 3. EFT in the Gulf Arab States -- a. Bahrain, Kuwait and Saudi Arabia are Members of SWIFT -- 4. Society for Worldwide Interbank Financial Telecommunications (SWIFT) -- a. EFT Documentary Letter of Credit -- C. Laws and Regulations on Electronic Funds Transfer -- 1. Transmitter Liability -- 2. Finality of Transfer -- 3. Fraud -- D. Advantages and Disadvantages of EFT -- 1. Advantages -- 2. Disadvantages -- a. Fraud -- b. Errors -- E. Suggestions -- F. Conclusion.

CONCLUSION AND RECOMMENDATIONS -- Appendix 1 UAE Federal Law No.6 of 1985 on Islamic Banks, Financial Institutions and Investment Companies -- Appendix 2 Dubai Islamic Bank, Promise to Purchase Contract -- Appendix 3 Dubai Islamic Bank, Contract of Murabaha Sale -- Appendix 4 Dubai Islamic Bank, Application [Form] for Opening a Documentary Credit -- Appendix 5 Dubai Islamic Bank, Letter of Credit Form -- Appendix 6 Kuwait Finance House, Desire and Promise to Purchase Request -- Appendix 7 Kuwait Finance House, Contract of Sale -- Appendix 8 Kuwait Finance House, Application [Form] for a Documentary Letter of Credit and Indemnity -- Appendix 9 Kuwait Finance House, Letter of Credit Form -- Appendix 10 Kuwait Finance House, Declaration and Guarantee -- Appendix 11 Bahrain Islamic Bank, Promise to Purchase Contract -- Appendix 12 Bahrain Islamic Bank, Application [Form] to Open an Irrevocable Credit -- Appendix 13 Bahrain Islamic Bank, Letter of Credit Form -- Appendix 14 Qatar Islamic Bank, Purchase Request and Promise to Purchase Contract -- Appendix 15 Qatar Islamic Bank, Murabaha Sale Contract (Preliminary) -- Appendix 16 Qatar Islamic Bank, Murabaha Sale Contract (Final) -- Appendix 17 Qatar Islamic Bank, Application [Form] for Documentary Credit and Indemnity -- Appendix 18 Qatar Islamic Bank, Letter of Credit Form -- Appendix 19 Al Rajhi Banking Investment Company, Promise to Purchase (Foreign) -- Appendix 20 Al Rajhi Banking Investment Company, Sale Contract -- Appendix 21 Al Rajhi Banking Investment Company, Letter of Credit -- Appendix 22 National Bank of Abu Dhabi, Application [Form] for Documentary Letter of Credit -- Appendix 23 National Bank of Abu Dhabi, Letter of Credit Form -- Appendix 24 Interview Questions to the Management of the Central Bank of the United Arab Emirates.

Appendix 25 Questionnaire to the Customer of Conventional Commercial Banks and Islamic Commercial Banks in the United Arab Emirates.