The End - 2000 to 2009

Pray for the Global Economy

Unfortunately greedy people in many major financial corporations in America have caused a huge global economic downfall and now countries and corporations worldwide are facing tremendous losses.  Literally, thousands of jobs have been lost by major corporations and more are expected to be announced this week.  We as Muslims are directly effected by this.  The Muslim world has a large percentage of the worse economies of the world.  This was during the time when America was thriving.  Now that our economy has declined, what do you think happens to the economies of those third-world nations (including many Muslim countries)?  It’s a domino effect.  Whatever happens in America happens throughout the world.  This is due to globalization and corporations having interests in multiple regions of the world.

The only good thing about all of this is the cheap gas prices!

I pray to Allah (swt) to guide our business transactions and the global economy to use moral and just ways in their financial practices.


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  • 4 Responses for "Pray for the Global Economy"

    1. David A Kearns December 10th, 2008 at 4:03 pm

      Actually this isn’t completely true. Many Muslim majority countries have much of their banking systems based on Shariah compliant, or near Shariah compliant systems and therefore did not engage in the sub-prime mortgage market, and as a result are financially much better off. Sure there will be some ripple affect, but for some countries this correction in the market will actually be a boon.

    2. MR December 10th, 2008 at 4:19 pm

      @David – Their banking systems may be safe from the mortgage crisis but their currency, their GDP, import/export rates and other globalized financial investment they have have directly been effected by this. A good example would be Dubai. Dubai is in very big trouble. Everything they have built will not sell as much as they expected it. Also Iran wsa expecting oil prices to be extremely high and budgeted themselves based on that, but now that the place for a barrel is in the 30s and not the 70s or 80s they have lost a lot of money as well as the OPEC nations who thought they would continue to make bank from the high prices. The only Muslim country in the Middle East that probably has a stable economy is Saudi Arabia.

      I’m not really sure how the Indian sub-Continent is doing or South East Asia, but I’m almost positive India and Indonesia are effected by the markets in China and Japan.

    3. MR December 10th, 2008 at 4:25 pm

      Another sad state is that the G8 when to G20. Now these G20 countries are the major providers of aid to third world countries (many of which are Muslim-majority countries). They will definitely cut their foreign aid to these countries in order to save their own economy.

    4. Yusuf December 10th, 2008 at 5:19 pm

      Salam MR!

      You’ve made a couple of great points. The US economy is a mammoth whose ripple effects are felt all over the world. So when the Dow or NASDAQ crash here, the next morning there’s a bloodbath on the FTSE, the Nikkei and the Hang Seng.

      I was also discussing Dubai with a family member and he advised me – just as you said – that things are not looking so well in Dubai. Much of their economy, by way of their investments, is tied to the US, so when times are bad here they’re not so great over there either.

      As for India, it’s the largest exporter of software in the world, but who does most of the buying? America! Now the US isn’t spending the way it used to, and the results are being felt in Bangalore.

      Hope all else is well,

      Yusuf Khan

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