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 Finance Gateway on Twitter

27.2.11

Are Islamic Investment Certificates Special? Evidence on the Post-Announcement Performance of Sukuk Issues

Are Islamic Investment Certificates Special? Evidence on the Post-Announcement Performance of Sukuk Issues
Christophe J. Godlewski, University of Strasbourg, LaRGE Research Center; EM Strasbourg Business School
Rima Turk Ariss, Lebanese American University
Laurent Weill, Université Robert Schuman Strasbourg III; University of Strasbourg - LaRGE Research Center (Laboratoire de Recherche en Gestion et Economie)
April 2010

Abstract: "The last decade has witnessed rapid expansion of Islamic financial instruments, notably with the proliferation of Islamic investment certificates called Sukuk. Sukuk generally represent the Islamic financial instrument equivalent to conventional bonds. We evaluate the economic differences between these financing techniques and appraise the implications on the future expansion of Sukuk. We use a market-based approach to investigate whether investors react differently to the announcements of issues of Sukuk and conventional bonds. We find that the stock market is neutral to the announcement of conventional bonds, but we observe a significant negative stock market reaction to the announcement of Sukuk. We explain this different stock market reaction using the adverse selection mechanism, which favors Sukuk issuance by lower-quality debtor companies. Unlike arguments presented in prior literature, our results support the view that differences exist between Sukuk and conventional bonds because the market is able to distinguish among these securities."
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24.2.11

The Deloitte Islamic Finance leaders survey in the Middle East

The Deloitte Islamic Finance leaders survey in the Middle East
Benchmarking Practices
Biannual Survey - 2010
Deloitte’s Islamic Finance Knowledge Center

"In order to best serve the interests of its clients and the Islamic Finance practice generally, the Deloitte’s Islamic Finance Knowledge Center (Deloitte ME IFKC) seeks to implement an evidence-based approach to the evolution of Islamic Finance Thought Leadership (IFTL).

This is the first Deloitte Islamic Finance leaders survey in a biannual series targeted at industry practitioners and leaders of Islamic Financial Institutions (IFIs) in the Middle East. The survey is based on interviews conducted with industry leaders between April and June 2010.

In general, this report is designed to provide industry stakeholders-regulators, standard-setters, Islamic financial institutions (IFI), investors, and practitioners with a portrayal of the trends and issues prevailing in the current economic environment."

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21.2.11

The Economics of Islamic Finance and Securitization

The Economics of Islamic Finance and Securitization
Andreas A. Jobst
International Monetary Fund (IMF) - Monetary and Capital Markets Department (MCM)
Journal of Structured Finance, Vol. 13, No. 1
February 2007

Abstract: Islamic lending transactions are governed by the precepts of the shariah, which bans interest and stipulates that income must be derived as return from entrepreneurial investment. Since Islamic finance is predicated on asset backing and specific credit participation in identified business risk, structuring shariah-compliant securitization seems straightforward. This paper explains the fundamental legal principles of Islamic finance, which includes the presentation of a valuation model that helps distil the essential economic characteristics of shariah-compliant synthetication of conventional finance. In addition to a brief review of the current state of market development, the examination of pertinent legal and economic implications of shariah compliance on the configuration of securitization transactions informs a discussion of the most salient benefits and drawbacks of Islamic securitization.
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20.2.11

Voices of the Unheard - Salvaging the Next Generation of Islamic Bankers

Voices of the Unheard - Salvaging the Next Generation of Islamic Bankers
Islamic Business & Finance Magazine
By Mohammed Khnifer (MSc,MBA,CIFP)

The silent generation of unemployed Islamic financiers. The Author warns the Islamic finance industry that it is about to lose its second generation of bankers.
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19.2.11

AIMS - Job Opportunities in Islamic Banking & Finance

Job Opportunities in Islamic Banking & Finance
AIMS - Academy for International Modern Studies
February 2011

This is a periodic compilation of job postings and openings from a multitude of sources (all relevant to Islamic banking & finance), which can be found on the AIMS website.  Hoping to highlight other similar sources in the future and feedback in this regard is also very welcome.
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16.2.11

Sector Report: Islamic Finance

Sector Report: Islamic Finance
Global Finance
By Anita Hawser
February 2011

"The growing popularity of Islamic financing and an intensified focus on risk management in the global banking industry are prompting greater awareness of the need for a unified—and appropriate—regulatory regime."





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14.2.11

The Small World of Islamic Finance

The Small World of Islamic Finance
Shariah Scholars and Governance - A Network Analytic Perspective
Murat Ünal
Funds@Work
January 2011


This report raises a variety of questions relating to governance of Islamic Financial Institutions (pages 28 - 31) and some of them echo similar queries raised in an earlier editorial of Opalesque Islamic Finance Intelligence (see reference link).


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11.2.11

ISRA Journal - Volume 2

ISRA International Journal of Islamic Finance
Volume 2, Issue 2
December 2010

Volume 2 of the ISRA journal is now available online, you can find the table of contents here and download individual articles directly from their site, these include:

Academic Articles:

Juristic Analysis of the Profit Distribution Method
New Musharakah Model in Managing Islamic Investment
An Overview of Shari'ah Issues Regarding the Application of the Islamic Letter of Credit Practice in Malaysia
Case Studies of the Practice of Nomination and Hibah by Malaysian Takaful Operators
An Empirical Investigation into SMEs’ Perceptions of Credit Guarantee Corporation (CGC) Malaysia Berhad: A Case Study of the Islamic Guarantee Scheme in Malaysia

Practitioner's Articles:

Islamic Liquidity Management – The Malaysian Experience

Research Notes:

Shari'ah Parameters of Hiyal in Islamic Finance
Analytical Study of the Interaction Between Fatawa, Shari'ah Rulings, Resolutions and Conventional Laws in Contemporary Islamic Finance in Malaysia with Cross Reference to the Practices in Saudi Arabia, Pakistan and the Sudan
Capital Requirements and Banking Behaviour for Islamic Banks
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8.2.11

Islamic Banking Windows - By Justice Mohammed Taqi Usmani

Islamic Banking Windows
New Horizon Magazine, Issue No. 119
Justice Mohammed Taqi Usmani
May 2002

"It is well settled that the emergence of a full competitive market is always useful for the strength of an industry. There is no reason why Islamic banks should be an exception to this rule. If these windows perform well, it will persuade Islamic banks to perform better and if their performance is poor, they will never be able to stand before the Islamic banks as hard competitors."
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4.2.11

IFRS vs AAOIFI: The Clash of Standards?

IFRS vs AAOIFI: The Clash of Standards?
Mohamed Ibrahim, Shahul Hameed
Published in: International Accountant
March 2007

Abstract: “The Islamic financial industry needs a corresponding alternative set of accounting standards which can at best be harmonized, not standardized due to the different nature and activities of the Islamic banks and financial institutions. These standards already exist, developed by an industry led non profit organization based in Bahrain- the Accounting and Auditing Organization for Islamic Financial Institutions established in 1991. The IASB should reconsider its position and allow alternatives- live and let live, just as there is a need for differential reporting requirements for small and medium businesses.”
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