Mastering Islamic Finance: A practical guide to Sharia-compliant banking, investment and insurance

Description

A practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers.   The Islamic Finance industry is estimated to be worth $1.2 trillion and is growing globally at over 10% per year. Mastering Islamic Finance will give practitioners an understanding of Islamic finance, from the basic techniques, through to advanced applications. Helping to demystify and clarify the differences with conventional banking, it will enable practitioners to develop Sharia compliant products for customers.           According to Sharia law there are strict rules on how financial services and products can be designed; in Islamic Finance money cannot make money and the subject of the finance must be an asset or a verifiable, real trade or business activity. Sharia compliant financial instruments have been devised to enable Muslims to abide by the principles of Islam and still make the most of their money.         Mastering Islamic Finance will equip readers with an understanding of Islamic financial instruments so they can sensibly apply them in practice. For each instrument there is a definition of the concept and how it differs from its equivalent in conventional banking. There are also examples and case studies to highlight practical applications. Cover Contents About the author Publisher’s acknowledgements Author’s acknowledgements Part 1: Background Chapter 1: The Islamic finance phenomenon Introduction The Islamic finance phenomenon Why does Islamic finance exist? Why is Islamic finance a sizeable and growing market? Key challenges facing the industry Conclusion Chapter 2: Islam – key beliefs, principles and practices Introduction Belief system Key practices – the five pillars of action Importance of the Qur’an and the Sunnah Interpretation of the sharia The role of scholars and sharia supervisory boards in Islamic finance Conclusion Chapter 3: How Islamic finance differs from conventional banking The Islamic economic model Key Islamic finance principles Conclusion Chapter 4: Valid commercial contracts in Islamic finance Introduction Key conditions for validity of contracts Integrity of contractual arrangements Status and use of promises Conclusion Part 2: Islamic finance in Practice Chapter 5: Key transaction types in Islamic finance Introduction Equity-type: transactions Mudarabah (Partnership – one party contributes capital) Musharakah (Partnership – all parties contribute capital) Asset finance Murabaha Ijarah Istisn’a Salam Other key transaction types Wakala Hawalah Rahn Kafalah Conclusion Chapter 6: Sukuk Introduction Definition Mechanics of a sukuk transaction Types of sukuk Asset-based versus asset-backed sukuk Sukuk and the secondary market A strong future for sukuk Conclusion Chapter 7: Sharia-compliant investments and wealth management Introduction Sharia-compliant investments Zakat by Iqbal Nasim Sharia-compliant estate distribution and Islamic wills by Haroon Rashid Conclusion Chapter 8: Takaful – Islamic insurance Introduction Sharia perspective on conventional insurance Takaful – the Islamic alternative Takaful models Types of takaful policy The future of the takaful industry Conclusion Chapter 9: The future of Islamic finance Introduction Recommendations for success by IFSB and IDB/IRTI Opinion pieces The Christian view of usury by Robert Van de Weyer The future of Islamic finance by Dr Sayd Farook The secret to long-term success: get the direction of travel right by Faizal Karbani Index