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

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30.12.10

Monetary Operations and Government Debt Management Under Islamic Banking

Monetary Operations and Government Debt Management Under Islamic Banking
V. Sundararajan, David Marston, Ghiath Shabsigh
International Monetary Fund (IMF)
September 1998

Abstract: This paper outlines the recent progress in developing Islamic financial instruments for the management of monetary policy and public borrowing requirements and provides details on new instruments currently being developed in the Islamic Republic of Iran and Sudan. The paper also touches on the institutional arrangements for interbank market operations and the design of effective central bank credit facilities that are needed under Islamic banking to support the development and operation of these new instruments.
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28.12.10

Hedging in Islamic Finance

Hedging in Islamic Finance
IRTI Occasional Papers
Sami Ibrahim Al-Suwailem
2006

Abstract: "The last decade witnessed an increasing trend in markets’ volatilities and financial crises. During the same period, derivatives, the most common instruments for hedging, have been growing at an exponential rate. Apparently, derivatives did not help stabilize markets and attenuate financial crises. This is not difficult to explain, since derivatives are also the main instruments for speculation. More than 97% of derivatives users are speculators, while less than 3% are hedgers. The challenge therefore is to search for instruments that allow for productive risk management without harmful speculation. This is the theme of Islamic finance that the paper explores. Based on Shari’ah rules of gharar, the paper therefore suggests several instruments for managing and hedging risks associated with Islamic modes of finance."

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20.12.10

Managing Prudentially the Shariah compliance risk - Organized Tawarruq as an example

Managing Prudentially the Shariah compliance risk - Organized Tawarruq as an example
Opalesque Islamic Finance Intelligence
By Mohammed Khnifer (MSc,MBA,CIFP)


A novel research that deals with Maslaha (public interest) and the Permissibility of Organized Tawarruq. It also shed light on the Shariah Governance issue and the Shariah Risk. It is a “must” read for any Shariah Risk officer.
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16.12.10

Opalesque Islamic Finance Intelligence XIV

Welcome to the fourteenth edition of OIFI (download PDF version), our last edition for the year, and as we look back at 2010 we sincerely thank everyone that has supported us along the way. The industry itself has much to look forward to in the coming years and this is the recurring theme for this edition. Our Editorial Section tackles the evolving role of AAOIFI as it pertains to governance and regulation of Shariah scholars. Our Featured Resource is a compilation of some the most noteworthy discussions from our online forum.

Mohammed Khnifer takes on our Featured Structure section with an extensive analysis on the implementation of Islamic deposit insurance, with particular attention given to Malaysia's IDI framework. This is promptly followed by Lex Islamicus where ISRA'a Hakimah Yaacob provides a fresh approach to the standardisation debate, including novel references to international conventions for the harmonisation of private law and coordination of civil and commercial matters.

The Industry Snapshot welcomes back Mobasher Zein as he continues his analysis of an Islamic commodity-backed currency with further attention given to the monetary framework that would be required to make this happen. Last but certainly not least Toby Birch shares his views on our Opinion Column with regards to the underserved retail market in Islamic finance and what are some of the obstacles that need to be addressed in coming years.

Always glad to hear from our readers and welcoming all comments & suggestions and please 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: AAOIFI's Perestroika
Featured Resource: Linkedin Discussions - Highlights of 2010
Featured Structure: Towards a Universal Islamic Deposit Insurance System
Lex Islamicus: Standardisation v Harmonisation: Towards Recognition?
Industry Snapshot: Islamic Dinar Revisited
Opinion Column: Ready for Retail?
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ICM Quarterly Bulletin - September 2010

Malaysian ICM Quarterly Bulletin
Securities Commission Malaysia
September 2010 Vol. 5 No. 3

The latest issue of the Malaysian ICM quarterly bulletin is here, published by the Securities Commission Malaysia (SC). Among the featured content you will find a couple of interesting articles, one on the ethics of disagreements and another on the concept of paying for a promise to buy/lease an asset (hamish jiddiyyah) in the context of an ijarah contract. This and previous issues of the bulletin are available on their online archive here.
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10.12.10

Islamic Project Finance in The Kingdom of Saudi Arabia

Islamic Project Finance in The Kingdom of Saudi Arabia
Craig Nethercott and Mohammed Al Sheikh – White & Case llp
Hissam Kamal and Sheikha Al Sudairy – HSBC Saudi Arabia Limited
July 2006

"...there was a common scepticism as to whether the products applied in Qatar, Oman and elsewhere in the Gulf could be used in Saudi Arabia. The full spectrum of Islamic financing products is commonly utilised in Saudi Arabia (mostly in retail banking), but never before had an Islamic financing product been used in a multi-sourced financing."
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8.12.10

Rural Finance and Farmers' Indebtedness: A Study of Two Punjabs

Rural Finance and Farmers' Indebtedness: A Study of Two Punjabs
Singh, Lakhwinder (October 2008)
Punjabi University

Abstract: "Economic development theory has recognized that access to finance enables economic agents of production to exploit growth opportunities. The governments of less developed countries since world war two have been striving hard to enacting suitable policies to enable rural households in accessing timely credit. This has led to a rise in the agricultural production and productivity. The pattern of economic transformation followed by less developed countries, which has squeezed agriculture sector surpluses without reducing the burden of population dependent in such economic activities. Consequently, the borrowing generally in such kind of economic transformation process becomes burden some. The modern development process in both the rural economies of Indian and Pakistani Punjab could also not able to replace the older money-lending system, which remained excessively exploitative. This process of financing rural economic activities can be called as double squeezing of agricultural households. An attempt has been made here to examine the growth, structure and deficiencies in the rural financial systems of two Punjabs during the period 1975-76 to 2003-04. Some suggestions related to public policy for providing timely and adequate credit have also been made."


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6.12.10

Islamic Finance: A Therapy for Healing the Global Financial Crisis

Islamic Finance: A Therapy for Healing the Global Financial Crisis
Miranti Kartika Dewi, Faculty of Economics, University of Indonesia
Ilham Reza Ferdian, International Islamic University Malaysia

Abstract: "Global financial crisis which hit many too-big-too-fail countries and financial institution in the world was mainly made happen by debt securitization. Derivative instruments resulted from this process obviously were not backed by real asset. When any party came up with investment on these instruments, the investment would never support the development of real sector economy, instead, it just worsen the situation by creating bubble economic. This condition becomes more harmful when the securitized debts default. This practice is strictly forbidden according to Islamic finance principles. It has inherent risk management tools to prevent the crisis. This paper attempts to examine the root of the financial crisis and find the solution from Islamic finance principles."
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Sukuk- Building for a Solid Future

Sukuk- Building for a Solid Future
Islamic Banking & Finance magazine
Final verdict: East Cameron sukuk holders win their case

Asset-based and asset-backed sukuk are contrasting instruments with different consequences in the event of default, as Mohammed Khnifer explains in his analysis of distressed high-profile sukuk and the judgement on East Cameron Gas.  Also under the microscope is bankruptcy remoteness in sukuk issuance.
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4.12.10

Creating an Effective and Efficient Regulatory Framework for the Islamic Capital Market

Creating an Effective and Efficient Regulatory Framework for the Islamic Capital Market
by Dr Wan Nursofiza Wan Azmi
KLBS - Working Paper Series 010
2007

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2.12.10

Islamic Microfinance: A New Approach to Help Small Enterprises

Islamic Microfinance: A New Approach to Help Small Enterprises
ABAC Malaysia
August 2008

"It is estimated that about 35% of the world’s 1.2 billion Muslims are poor, thus creating a large market for microfinance. However, there are very few Islamic MFIs and Islamic banks involved in microfinance. Many MFIs are operating under the conventional system, while Islamic banks tend to favor larger firms."
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