Why Read It?
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Two of the best-known authorities in Islamic economics, finance, and banking provide an insightful and comprehensive introduction to Islamic financial principles and practice.
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Offers a concise background on the development of Islamic finance, and a practical overview of the main products and processes.
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Reflects on the progress that Islamic financial markets have made over the last few years, which has helped create an appetite for the Western finance and banking industry to expand into this emerging market.
Getting Started
An Introduction to Islamic Finance Theory and Practice explains the fundamental principles of an economic and financial system governed by Sharia law (Islamic law), and introduces all of the key elements and concepts of Islamic finance. It shows how the surge of interest in Islamic finance practices is based on a demand for more ethical investing, and a greater appreciation of the principles of, and potential under, Islamic law.
Authors
Zamir Iqbal is a Principal Financial Officer in the Risk and Analytics department in the Treasury of the World Bank. He has previously been a member of the adjunct faculty of international finance at the George Washington University.
Abbas Mirakhor is an Executive Director of the IMF, and has taught at various universities in the United States and Iran. He has received several awards, including the Order of Companion of Volta for service to Ghana, and the Quaid-e Azam star for service to Pakistan.
Context
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Places Islamic finance and banking within the context of Islamic teachings and principles, as well as modern Western finance and banking practices.
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Explains the fundamental principles and functions of an economic, banking, and financial system operating under Sharia law.
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Offers an overview of the principal concepts, focusing on financial contracting, instruments and intermediation, capital markets, regulation and governance, and how risk relates to Islamic finance.
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Examines the numerous tenets of Islam and how they impact on finance and banking, such as social justice, equality, preservation of property rights, sanctity of contracts, and the prohibition of riba.
Impact
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Useful as a resource for those seeking to invest in the Islamic finance markets, and also Islamic banks and financial institutions who are redesigning their risk management and diversifying their portfolios.
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Assesses the historical systems and financial instruments used by Muslim societies, and discusses the key tenets of Islam in relation to the economic behavior of individuals, society, and state.
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Examines the challenges of globalization, and how Islamic finance is developing to meet them.
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Provides insights into the fast-growing Islamic financial services industry, and incorporates examples and practical discussions which help give an understanding of this evolving market.
Quotations
“Islam propounds the guiding principles, and prescribes a set of rules, for all aspects of human life, including the economic aspect.”
“…the foremost priority of Islam and its teachings on economics is about ‘Justice and Equity’.”
“Islam’s unconditional prohibition of Riba (interest)…changes the landscape of the Islamic financial system.”
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