Rethinking Islamic Finance

Islamic finance’s phenomenal growth owes to the Shariah compliant nature of its financial instruments. Shariah forbids the charging of interest (Riba) and instead promulgates risk-sharing and trade-based modes of financing. The Islamic financial industry has been subject to both critique and admiration. Critics argue that Islamic instruments (bearing debt-based structures) differ from their conventional counterparts only in legal lexicon and not in economic impact. The admirers argue that such instruments, irrespective of wider economic implications, rigorously comply with ‘juristically sound’ Islamic principles. This book aims to reconcile the above dispute. It argues that the financial impact of instruments is a consequence of the way they are priced and structured. The similarity in pricing and structures is an outcome not of the underlying Islamic financial modes but of the competitive environment in which Islamic instruments compete. Even risk-sharing and trade-based Islamic structures, if implemented in such an environment, would have a financial impact similar to that of conventional instruments. This book has a wider appeal for both academic and non-academic audiences. It can complement undergraduate and graduate courses as an additional reading on the intricacies of Islamic financial instruments and markets. For PhD students, it would help identify future research areas. To non-academics, it offers a deeper understanding regarding the working of the Islamic finance industry.

Explore Islamic finance at a deeper level Intermediate Islamic Finance: Theory and Practice fills the gap for students and professionals who are already familiar with the fundamentals of Islamic finance, but would like to gain an enhanced understanding of Islamic finance theories and practices. This comprehensive text provides you with coverage of global developments and describes the role of Islamic finance within the global finance community to guide you in your understanding of this important aspect of the international financial landscape. The book references advance concepts and specific problems in the practice of Islamic finance, provides suggested further readings for each chapter, offers details of advanced analysis, and presents key data in visual form via graphs, figures, and tables. Profound changes have taken place in the financial landscape over the past few decades, including major innovations in financial instruments and substantial changes in regulation. With global financial markets becoming increasingly important players in the industry, it is critical that today's financial professionals understand the essence and implications of key Islamic finance theories and practices. Build upon your fundamental understanding of Islamic finance Explore some areas of convergence and conflict between Islamic finance and conventional finance Strengthen the harmony between Islamic and conventional finance theories and their applications Prepare for a well-rounded career in finance by better understanding how Islamic finance principles apply Intermediate Islamic Finance: Theory and Practice is an essential text for graduate and post-graduate finance students, economists, researchers, bankers, financial regulators, policymakers, and members of the business community who want to develop a deeper understanding of Islamic finance theories and practices.

In this extensively updated third edition, Hans Visser explores the ideas and concepts that drive and shape Islamic finance. This incisive book reviews the products, institutions and markets offered by Islamic finance in the modern marketplace, offering a critical discussion of the ways in which fiscal and monetary policy can be adapted to Islamic financial institutions. Visser offers new directions for economics and finance students, as well as students of Islamic finance and Islam studies more broadly.

The Prophet Muhammad’s reported traditions have evolved significantly to affect the social, cultural, and political lives of all Muslims. Though centuries of scholarship were spent on the authentication and trustworthiness of the narrators, there has been less study focused on the contents of these narratives, known as Hadith or Sunnah, and their corroboration by the Qur`an. This book is a first step in a comprehensive attempt to contrast Hadith with the Qur`an in order to uncover some of the unjust practices by Muslims concerning women and gender issues. Using specific examples the author helps the reader appreciate and understand the magnitude of the problem. It is argued that the human rights and the human development of Muslim women will not progress in a meaningful and sustainable manner until the Hadith is re-examined in a fresh new approach from within the Islamic framework, shifting the discourse in understanding Islam from a dogmatic religious law to a religio-moral rational worldview. The author argues that such re-examination requires the involvement of women in order to affirm their authority in exegetical and practical leadership within Muslim societies, and she encourages Muslim women to stand up for their rights to effect change in understanding the role of sunnah in their own life.

Conventional wisdom holds that all nations must repay debt. Regardless of the legitimacy of the regime that signs the contract, a country that fails to honor its obligations damages its reputation. Yet should today's South Africa be responsible for apartheid-era debt? Is it reasonable to tether postwar Iraq with Saddam Hussein's excesses? Rethinking Sovereign Debt is a probing analysis of how sovereign debt continuity--the rule that nations should repay loans even after a major regime change, or else expect consequences--became dominant. Odette Lienau contends that the practice is not essential for functioning capital markets, and demonstrates its reliance on absolutist ideas that have come under fire over the last century. Lienau traces debt continuity from World War I to the present, emphasizing the role of government officials, the World Bank, and private markets in shaping our existing framework. Challenging previous accounts, she argues that Soviet Russia's repudiation of Tsarist debt and Great Britain's 1923 arbitration with Costa Rica hint at the feasibility of selective debt cancellation. Rethinking Sovereign Debt calls on scholars and policymakers to recognize political choice and historical precedent in sovereign debt and reputation, in order to move beyond an impasse when a government is overthrown.

This collection of essays brings together leading scholars and practitioners to discuss contemporary issues in the rapidly expanding sukuk market, and frankly debates the challenges facing it since the 2008 financial crisis. Highly recommended for practitioners, scholars, and students of Islamic finance. Professor Mohammad Hashim Kamali is the founding chairman and CEO of the International Institute of Advanced Islamic Studies (IAIS) in Malaysia, and is a leading authority in Islamic jurisprudence, Islamic finance, and human rights in Islamic law. A.K. Abdullah is an assistant research fellow at the IAIS.

A critical study of the interpretation of "riba" in Islam, the attempts of Islamic banks to put the interpretation into practice, the problems associated with these attempts and an argument for rethinking the interpretation.

Rethinking Halal reflects an anthropological revolution, that of the scientising, standardising, and normalising of social life through certification which is part of a process of ‘positivisation’ that directly affected Islam and Islamic normativity.

Both Muslims and non-Muslims see women in most Muslim countries as suffering from social, economic, and political discrimination, treated by law and society as second-class citizens subject to male authority. This discrimination is attributed to Islam and Islamic law, and since the late 19th century there has been a mass of literature tackling this issue. Recently, exciting new feminist research has been challenging gender discrimination and male authority from within Islamic legal tradition: this book presents some important results from that research. The contributors all engage critically with two central juristic concepts; rooted in the Qur’an, they lie at the basis of this discrimination. One refers to a husband’s authority over his wife, his financial responsibility toward her, and his superior status and rights. The other is male family members’ right and duty of guardianship over female members (e.g., fathers over daughters when entering into marriage contracts) and the privileging of fathers over mothers in guardianship rights over their children. The contributors, brought together by the Musawah global movement for equality and justice in the Muslim family, include Omaima Abou-Bakr, Asma Lamrabet, Ayesha Chaudhry, Sa‘diyya Shaikh, Lynn Welchman, Marwa Sharefeldin, Lena Larsen and Amina Wadud.