Contemporary Issues in Islamic Law, Economics and Finance: A Multidisciplinary Approach

Description

This book explores how Islam can impact the structures and performance of firms, financial institutions and capital markets across a range of countries and industries. The Islamic finance industry represents an important reality not only because of the oil wealth of the Gulf states, which have fueled demand for such financial services, but also for an increased demand from a growing Muslim population in the West that aspires to express a full and all-inclusive religious identity. The increased demand for Muslim financial institutions has prompted Western non-Islamic firms to begin providing these services in an interesting effort of acculturation to the new plural scenario. By adopting a multidisciplinary approach, which also takes into account the theological, legal and geopolitical framework, the book offers a comprehensive picture of Islamic financial tools, contracts and business opportunities. Drawing on different fields of expertise, it deals with various themes, such as the theological roots of Islamic economics and finance and its geopolitical impact; the EU policy of cooperation with MENA and GCC countries; the instruments of Islamic finance, its legal principle and ability to become an instrument for enhancing business opportunities; the functioning of Islamic banks; the development of capital markets within a financial model influenced by religious constraints and, finally, the new relationships of this religious financial system with Western legal systems. The book thus provides a complete and extensive overview of the practice of Islamic finance through the lenses offered by studies of economics and management. Providing a careful analysis and an integrated framework of geo-economic and political issues, the book will be a valuable resource for academics, researchers and professionals in International Business, Entrepreneurship and Small Business Management, Law and Religion and Intercultural Studies. Cover Half Title Title Page Copyright Page Table of Contents List of figures and tables Introduction 1: Premise 2: Contemporary Issues in Islamic Law, Economics, and Finance: The Analysis 2.1: Part 1: Fundamentals and Comparative Perspectives 2.2: Part 2: Fundamentals of Mediterranean Economics and Finance 2.3: Part 3: Banking, Finance, and Business Opportunities About the Author/Editors Part 1: Fundamentals and Comparative Perspectives Chapter 1: Reconciling Islam and Finance: Challenges in Integrating Muslims into Financial Markets 1: Introduction 2: Islamic Restrictions on Financial Deals 3: Continuing with Conventional Instruments 4: Creating Islamic Alternatives 5: How Islamic are “Islamic” Financial Instruments? 6: Muslims and Islamic Financial Instruments 7: Conclusion References Chapter 2: When Can Finance be Called “Islamic”? Reflections on the Relation between Islamic Ethics, Law and Economics 1: Law as a Guide for the Believer 2: Homo Economicus Islamicus 3: Unlawful Gains v. Lawful Contracts References Chapter 3: Preconditions and Suggestions for Islamic Finance to Generate Sustained Economic Growth 1: Introduction 2: Pre-conditions 3: Modest Contribution of Islamic Banking to Economic Development 4: The Real Potential 5: Waqfs, Universities and Venture Capital 6: Esham and Public Debt 7: Conclusion References Part 2: Fundamentals of Mediterranean Economics and Finance Chapter 4: The Economics and Finance of the Middle East and North Africa 1: Introduction 2: A Brief Economic History of the Region 3: The Emergence of the Modern Middle East 4: The Structure of MENA Economies Today 5: Financial Development in MENA 6: The MENA Region in Comparative Perspective 7: The Sovereign Wealth Funds of the MENA Region 8: Investment Strategies of MENA SWFs 9: Real-World Portfolio Allocation in a Typical MENA SWF 10: MENA’s Economic Future References Chapter 5: The EU Cooperation Policy with the Northern African Mediterranean Countries and the Middle East 1: Introduction 2: From the Early Cooperative Instruments to the Barcelona Process 3: Two New Instruments in the 2000s: the European Neighbourhood Policy and the Union for the Mediterranean 4: The Recent Changes in the European Neighbourhood Policy 5: An Overview of the Trade Flows across the Mediterranean Sea 6: Conclusions References Part 3: Banking, Finance and Business Opportunities Chapter 6: Global Islamic Finance: Principles and Products 1: Introduction 2: The Geography of Islamic Finance 3: Reasons for Growth 4: The Principles and Pillars of the Islamic Economic Model 5: From Principles to Product 5.1: Profit and Loss Financing Products 5.2: Non-Profit and Loss Financing Products 5.3: Sukuk 5.4: Takaful 6: Problems and Perspectives References Chapter 7: Framework and Functioning of the Islamic Bank and Differences with Conventional Banks 1: Islamic Banking Systems 2: Islamic Bank Regulation 3: Concepts and Principles Underlying Islamic Banking Activity and the Supply of Financial Products 4: Islamic Bank versus Traditional Bank 5: Islamic Equity Crowdfunding References Chapter 8: Marketing of Islamic Banks 1: Introduction 2: The Marketing Environment for Islamic Banks 3: Marketing Concepts for Islamic Banks 3.1: STP for Islamic Banks 3.2: Ansoff’s Matrix for Islamic Banks 3.3: Communication for Islamic Banks 3.4: Controversies 4: Conclusion References Chapter 9: Islamic Finance to Enhance Business Opportunities: Private Investment 1: Introduction 2: Considerations at Inception 3: Murabaha 4: Lease (Ijara) in Real Estate Investments 5: Lease (Ijara) in Private Equity 6: Opportunities References Chapter 10: Islamic Finance to Enhance Business Opportunities: Capital Markets 1: Introduction 2: The Dow Jones Fatwa 2.1: Principles 2.2: Tests 3: Sukuk 3.1: Basics 3.2: Market Issuances 4: Opportunities References Chapter 11: Application of the Legal Principles of Islamic Finance to Our Legal System 1: Implementation of Sari’ah Principles as a Result of Recourse to Foreign Law 2: Comparative Aspects between the Principles of Islamic Finance and Italian Law 3: Islamic Financial Products: Hints of Consistency with Italian Law 4: The Italian Offer of Islamic Financial Products References Index