Contents
1 The Islamic finance phenomenon
The Islamic finance phenomenon
Why does Islamic finance exist?
Why is Islamic finance a sizeable and growing market?
Key challenges facing the industry
2 Islam – key beliefs, principles and practices
Key practices – the five pillars of action
Importance of the Qur’an and the Sunnah
The role of scholars and sharia supervisory boards in Islamic finance
3 How Islamic finance differs from conventional banking
Key Islamic finance principles
4 Valid commercial contracts in Islamic finance
Key conditions for validity of contracts
Integrity of contractual arrangements
Part 2 ISLAMIC FINANCE IN PRACTICE
5 Key transaction types in Islamic finance
Mudarabah (Partnership – one party contributes capital)
Musharakah (Partnership – all parties contribute capital)
Murabaha (Sale of an asset at a known profit mark-up)
Istisn’a (Sale of an item to be constructed or manufactured)
Salam (Sale of fungible item yet to be produced)
Wakala (Agent providing services to a Principal)
Kafalah (Providing a guarantee)
Mechanics of a sukuk transaction
Asset-based versus asset-backed sukuk
Sukuk and the secondary market
7 Sharia-compliant investments and wealth management
Sharia-compliant estate distribution and Islamic wills by Haroon Rashid
Sharia perspective on conventional insurance
Takaful – the Islamic alternative
The future of the takaful industry
9 The future of Islamic finance
Recommendations for success by IFSB and IDB/IRTI
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