Dubai Tests Sharia

Article

The New York Times discuss the debt crisis in Dubai which is about to test one of the fastest-growing areas in banking, Islamic fiance, and put the city-state's opaque judicial system on trial. This article examines how religion could affect economics especially when laws in a the country are so strictly made along religion. In Dubai's case the government does not believe that they need to pay the interest, so it is causing a delay on payments. The government also with the Sharia will not allow the bank to take over assets of the ruler since that is not in their law. Which is causing many problems between the bank and the region. The rich and oil wealthy region has decided to embark on the best tourist spot in the world, but since the economy is down Dubai is not being visit and are not able to make back all these major loans. The bank is just asking for a small portion of that they own, which is about 1 trillion dollars. Malaysia was traditionally the hub of all Islamic fiance, but since there is so much new activity centered around Dubai, and foreign and law firms and backs there helped the emirate raise much of its debt. Not only is their religion being so involved in their Sharia causing many economic problems, but these economic money issues or causing disturbance in a culture which has been set for many hundreds of years.