@GaradShabeel I don't know how our locals will develop without bank loans, I seriously don't. Surely a bank loan with interest is better then charity n dependence. Surely the sheikhs have to see that it has better result with wealth being spread out, ppl owning assets, starting up businesess. How do u begin a business or buy a property without money first? ppl dont have capital sitting idly.
How can all this be ignored becuz of 'interest'? interests is simply small margin added to the loan, it's not ribbah where ppl r being robbed blindly or else no-one would take the loan. As for FDI, how do u develop money thru that? all of it is going abroad, while ur ppl r unemployed. I accept some industries will have foreign involvement but it should be 'partnership' model with Local.
I understand you completely, but I have to take huge considerations to the reality. Somalis in PL, just like everywhere else are 'strictly' practicing muslims, in many regards. Interest is one repeated discouraged aspect I hear from many in the diaspora, let alone back home. I live in Scandinavia, so unlike many western countries many don't take loans for educational purposes, and if we do, wallahi it's very much frowned upon, and Somalis judge and look at you in a certain way. And avoid for this particular reason. Can't imagine how it's in an environment, where religion plays a huge role in the daily life. Also the general view here and what i hear from people is that all forms of interest are ribbah, and therefore abstain from it all together.
With that being said, in the beginning, it's mostly going to be business men/women engaging in investments with loans. However, as time goes by and institutional banking are being established, more people will most likely partake. Though honestly speaking, I personally have a hard time seeing this happening in the nearest future, but you seem much more optimistic than me. But what do you think of "Islamic banking"? since I've heard there are demands for it.
As far as FDI, I was thinking more basic infrastructure projects, where there're a greater focus atp. This will in turn ease, to create and establish businesses like an upgraded port. But, you right about the sharing formula, as I was referring to large scale projects.
