An Analytical Study of the Economic Condition of Jews in Fatimid Egypt

This study examines the economic conditions of Jews in Fatimid Egypt from the 10th to 12th centuries CE. Through an analysis of primary sources, the study provides a nuanced understanding of the economic and social factors that affected the Jewish community during this period. The study argues that while Jews in Fatimid Egypt enjoyed certain economic privileges such as their involvement in international trade networks and their exemption from some taxes, they also faced some social and political restrictions, including forced conversion and discriminatory laws in the era of some Fatimid rulers. Despite these challenges, the Jewish community in Fatimid Egypt demonstrated resilience and adaptability, developing a range of economic strategies to maintain their livelihoods and build social networks. These strategies included investment in trade and finance, engagement with the wider Muslim society, and the development of communal institutions. The study highlights the complexity of Jewish economic life in medieval Egypt, challenging simplistic assumptions about the economic conditions of minority groups in pre-modern societies.

Liquidity Management by Islamic Banks in Pakistan: Analysis of Shariah Legitimacy and an Empirical Investigation

This research was designed to explore the liquidity management mechanisms and practices of Islamic banks in order to gain an insight of difficulties being faced by the Islamic banks in managing liquidity with the ultimate objective of finding Shari’ah compliant way-outs of such difficulties. This research has developed following econometric models (i) Liability Model—that identifies liquidity behaviours of Islamic banking depositors; (ii) Asset Model—that identifies liquidity behaviours of both the Islamic bankers and entrepreneurs; (iii) Liquidity Reserves Model—that explores factors determining the Islamic banks’ optimal liquidity reserves; and (iv) Liquidity DemandSupply Models—that investigate the resilience of the Islamic banking industry by considering different scenarios of unanticipated liquidity withdrawals. This research has found that: (a) Sukūk are the widely used liquidity management instruments by IFIs; (b) IFIs invest their excess liquidity by means of Mudārabah and Wakālah based mechanisms; (c) Commodity Murābahah is another widely used liquidity management instrument; (d) In Malaysia, there are various liquidity management instruments available, which are based on contracts of Bay’ al-‘īnah and Bay’ al-Dayn; (e) conventional liquidity management instruments are debt-based securities, therefore, are not Shari’ah compliant due to the involvement of Islamically prohibited Ribā and Bay’ al-Dayn. This research has found the liquidity behaviours of Islamic banking depositors and Islamic bankers as follows: (a) Islamic banking depositors are classified into the following three segments: (i) depositors with religious motives; (ii) depositors with profit motives; and (iii) depositors with transactional motives; (b) Islamic banking depositors withdraw their funds: (i) to fulfil their transactional needs; (ii) to relocate their term deposits’ tenor for a higher return; (iii) to shift their term deposits into other Islamic banks offering higher returns; and (iv) to place their deposits in their conventional bank’s accounts for a higher return; (c) Islamic banks, on liability side, apply following two approaches: (i) liquidity reserves are maintained for meeting the regular liquidity demands; and (ii) extra liquidity reserves are retained for meeting any unanticipated liquidity demands and for the purpose of safe sailing in times of liquidity run; (d) Islamic banks, on asset side, manage liquidity by: (i) preferring financing proposals of previously well-performed projects; (ii) requiring Rahn (collateral) or Kafālah (guarantee); (iii) preferring short-term financing; (iv) preferring to finance existing account holders; and (v) regularly monitoring the performance of their business partners; (e) Islamic banks would respond to the liquidity withdrawals exceeding the liquidity reserves by: (i) interbank borrowings or borrowing from the parent bank; (ii) selling Sukūk; (iii) withdrawing fund placements in other banks; and (iv) using bank’s equity. If further liquidity is required, Islamic banks would use emergency liquidity facility from State Bank and ask depositors to wait for extra days.