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INTRODUCTION
This paper describes the 1982 collapse of Kuwait's
"unofficial" stock market, the Souk al-Manakh. The Souk's
failure) with losses equivalent to $90,000 for every Kuwaiti man) woman,
and child, was fueled by opposing factors with roots in Kuwaiti social
and religious traditions. The paper includes recommendations which the
author hope will help to mitigate the severity of any such occurrences
in the future. The paper stresses the need to tailor regulations to the
unique culture of a nation and its people. The authors believe that
spiritual, governmental) and professional authorities should participate
in regulatory activities.
BACKGROUND
The Land and its People'
Tradition of Islam
Cultural Influence on Government and Business
Islamic Economics
Social Policy in Islam
THE COLLAPSE Of THE SOUK
Precls
A Climate Rife with Speculation
The Officially Unrecognized Postdated Checks
The Speculators' Expectations
THE GOVERNMENT RESPONDS
The Check Registration program
The Clearinghouse Concept
The Write - down of Premiums
The End of the Souk?
Other Actions
POSSIBLE CONSEQUENCES
RECOMMENDATIONS
Growth of a Modern Accounting Profession
Islamic-Accounting Postulates
The Role of the Religious Scholar
Orientation toward Objectives
Establishing an Arab Accounting and Auditing Academy
PROGNOSIS
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