Welcome to the Islamic Finance Resources blog, a grassroots initiative started by industry professionals and supported by practitioners from around the globe.

We constantly update this site and its overall content, and encourage you to use the various navigation tools available and welcome your feedback and comments.
A few of the resources that you can find in this site:
- Funds@Work: Network Analysis Among Sharia Scholars v 4.0
- ISRA: Islamic Finance Knowledge Repository
- IFSB-IRTI-IDB Islamic Finance and Global Stability Report
- Sukuk Reports: I, II, III, and IV
Much more available under 'Industry Reports' and 'Academic Papers' (right hand side menus)

Islamic Finance in the News

Islamic Markets on Twitter



30.10.10

Regulating Islamic Financial Institutions: The Nature of the Regulated

Regulating Islamic Financial Institutions: The Nature of the Regulated
Dahlia El-Hawary, George Washington University
Wafik Grais, World Bank
Zamir Iqbal, World Bank
February 2004
World Bank Policy Research Working Paper No. 3227

Abstract: "More than 200 Islamic financial institutions (IFIs) operate in 48 countries. Their combined assets exceed $200 billion, with an annual growth rate between 12 percent and 15 percent. The regulatory regime governing IFIs varies significantly across countries. A number of international organizations have been established with the mandate to set standards that would strengthen and harmonize prudential regulations as they apply to IFIs. El-Hawary, Grais, and Iqbal contribute to the discussion on the nature of prudential standards to be developed. They clarify the risks that IFIs are exposed to and the type of regulations that are needed to systematically manage them. They consider that the industry is still in a development process whose eventual outcome is the convergence of the practice of Islamic financial intermediation with its conceptual foundations. The authors contrast the risks and regulations needed in the case of Islamic financial intermediation operating according to core principles and current practice. They outline implications for approaches to capital adequacy, licensing requirements, and reliance on market discipline. They then propose an organization of the industry that would allow it to develop in compliance with its principles and prudent risk management, and facilitate its regulation."
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27.10.10

Value Through Diversity: Microfinance and Islamic Finance and Global Banking

Value Through Diversity: Microfinance and Islamic Finance and Global Banking
Nicoletta Ferro
Fondazione Eni Enrico Mattei (FEEM)
June 2005

Abstract: Internet resources, extended media coverage and international organizations' reports recently witness the increasing interest of western banks in new models of finance, particularly Islamic finance and microfinance. This new trend is not only channeled through the frame of corporate social responsibilities programs and policies or limited to ad hoc financial institutions (like microcredit banks or Islamic banks) as it is entering the financial offer of mainstream banks. The paper primarily outlines that many elements of microfinance could be considered consistent with the broader goals of Islamic banking. Apart from pure economic considerations which are not the aim of this analysis, the paper supports the thesis that by addressing new markets and embracing unconventional financial proposals, the global banking sector can contribute to the quest for diversity-oriented policies posed by an increasingly globalised scenario. The consequences this new trend is likely to have on inner banking structures are still unknown and are likely to interest the issue of wealth distribution. Moreover, from a more general point of view, by showing that even different moral ethos deep rooted in different cultural paradigms can be as profitable and available as western capitalistic ones, the banking sector can play a potential role in disseminating awareness on specific cultural and religious issues, resulting in increased integration of Muslim communities and low income investors in the long run and supporting commercial banks the close relation between economy and culture.
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25.10.10

Sign posts to Islamic finance 2.0

Sign posts to Islamic finance 2.0
By Rushdi Siddiqui
October 25, 2010

"Is the AIR (authenticity, innovation and reach) out of Islamic finance? It has been operating in a viral vacuum of “Islamic on Islamic” as an over the counter fragmented industry without global connectivity."
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22.10.10

Shariah Opinions (Fatwa) On Murabaha

Shariah Opinions (Fatwa) On Murabaha
Compiled & classified by: Dr. Ahmed Mohieddin Ahmed
Reviewed by: Dr.Abdul Sattar Abu Ghuddah
Al Baraka Center for Islamic Economics
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20.10.10

The Contribution Of Islamic Microfinance Institution In Increasing Social Welfare In Indonesia

The Contribution Of Islamic Microfinance Institution In Increasing Social Welfare In Indonesia
H. Nur Kholis, S.Ag, M.Sh.Ec
Head of Islamic Economic Department, Faculty of Islamic Studies
Islamic University of Indonesia, Yogyakarta, Indonesia
November 2009
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18.10.10

Islamic Banking and Finance: Between Ideals and Realities

Islamic Banking and Finance: Between Ideals and Realities
Abdul Rahim Abdul Rahman
Associate Professor, Kulliyyah of Economics and Management Sciences,
International Islamic University Malaysia, and formerly Director of IIUM
Institute of Islamic Banking and Finance
2007
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16.10.10

Islamic Finance Transparency Standard - a Consultation

Islamic Finance Transparency Standard - a Consultation
The Business & Economics Committee (BEC) of the MCB
The Muslim Council of Britain
October 2008

This consultation document, prepared by the BEC and its partners, intends to:
(a) Identify the problems created by the lack of Shariah governance standards
(b) Discuss the scope for industry self-regulation
(c) Examine the position internationally
(d) Examine the legal position in the UK
(e) Propose the creation of an Islamic Finance Transparency Standard

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14.10.10

Analytical Reflections on Murabaḥah Contracts and Islamic Debt Securities

Beyond the Theoretical Dichotomy in Islamic Finance:
Analytical Reflections on Murabahah Contracts and Islamic Debt Securities
Nagaoka Shinsuke
Graduate School of Asian and African Area Studies, Kyoto University, Japan;
Research Fellow of the Japan Society for the Promotion of Science
2007

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12.10.10

Riba and Recognition: Religion, Finance and Multiculturalism

Riba and Recognition: Religion, Finance and Multiculturalism
Ibrahim Abraham
Monash University

Abstract: "This article utilises the contemporary political theory of Nancy Fraser to explore the seemingly disparate issues of religious diversity and financial regulation in multicultural late capitalism, focusing on Islamic finance. In recent decades, Islamic finance has expanded into an almost trillion dollar global industry based around the rejection of riba, an Arabic word meaning usury. Whilst the growth of Islamic finance has been staggering, there has been little political or sociological analysis undertaken. This paper argues that Islamic finance challenges not only conventional financial wisdom and regulations, but raises numerous issues about religious identity and relationship between religion, politics and the economy. Analysing the development, principles and practices of Islamic finance, this paper argues that the seemingly staid field of financial regulation is actually a field wherein the politics of religious identity is very strong and wherein complex issues of cultural recognition, economic redistribution and political representation have emerged."
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4.10.10

Opalesque Islamic Finance Intelligence - Twelfth Issue

Welcome to the twelfth edition of OIFI (download PDF version), where we dig deep to uncover the hidden gems of Islamic finance. Sometimes it seems we might not be able to see the forest for the trees, and our editorial section takes a different angle with respects to Shariah supervision and its overall role within the corporate walls. Our Featured Resource compiles a large selection of research papers from the International Shari'ah Research Academy for Islamic Finance (ISRA), which might not be widely disseminated but prove to be excellent reading.

Istijrar is a financial instrument that is seldom talked about in Islamic finance but which contains some intriguing characteristics, Nikan dissects it in the Featured Structure segment. For our Allocator Interview we hear from Chaaban Omran of Crescent Investments Australasia, as we discuss the investment rationale for Australia (which could be regraded as a frontier market for Islamic finance).

Furthermore, Abdulkhaliq Elshayyal takes on Lex Islamicus where he delves into how Islamic financial institutions manage the risk of non-compliance with Shariah, with some very interesting insights. The Industry Snapshot section sees Mobasher Zein tackle the topic of an Islamic currency, both revisiting the historical background as well as analyzing the various pieces of the puzzle that needs to be put together to support an Islamic economy. In addition, Mohammed Amin shares with us his review of the book "Islamic Banking and Finance: What It Is and What It Could Be" and we hope to bring more book reviews in the future.

As always, we are keen to hear your comments & suggestions and remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: The Shariah Compliance of Teldar Paper
Featured Resource: ISRA Research Papers
Featured Structure: Istijrar - How does it really work?
Lex Islamicus: A Brief Look at Ikhtilaf - Diversity of Ijtihad in Islamic Finance
Allocator Interview: Crescent Investments Australasia
Industry Snapshot: Islamic Dinar Reloaded
Book Review: Islamic Banking and Finance: What It Is and What It Could Be
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