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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31.5.11

Islamic Bond Issuance - What Sovereign Debt Managers Need to Know

Islamic Bond Issuance - What Sovereign Debt Managers Need to Know
Prepared by Andreas Jobst, Peter Kunzel, Paul Mills, and Amadou Sy
IMF Policy Discussion Paper
Monetary and Capital Markets Department
July 2008

Abstract: "Recent years have witnessed a surge in the issuance of Islamic capital market securities (sukuk) by corporates and public sector entities amid growing demand for alternative investments. As the sukuk market continues to develop, new challenges and opportunities for sovereign debt managers and capital market development arise. This paper reviews the key developments in the sukuk market and informs the debate about challenges and opportunities going forward."


Alternate link (SSRN)
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25.5.11

Banking Behavior of Islamic Bank Customers: Perspectives and Implications

Banking Behavior of Islamic Bank Customers: Perspectives and Implications
Saad A. Metawa, Associate Professor of Finance, University of Bahrain
Mohammed Almossawi, Assistant Professor of Marketing, University of Bahrain

Abstract: "Describes a study designed to investigate the banking behavior of Islamic bank customers in the state of Bahrain. The study sample comprised 300 customers. A comprehensive profile analysis and a series of chi-square tests were conducted to reveal key characteristics and patterns: the majority of Islamic bank customers are well educated; approximately 80 per cent are between 25-50 years of age; more than 50 per cent of the surveyed customers have maintained their current banking relationship with Islamic banks for more than six years; customers’ awareness and usage rates are quite high for savings accounts, current accounts, investment accounts and automated teller machines; customers were found to be most satisfied with the products/services they use most, with the investment accounts receiving the highest satisfaction score; Islamic bank employees received the highest satisfaction score among the elements of the service delivery system; the two most important bank selection criteria were adherence to the Islamic principles, followed by the rate of return."
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21.5.11

Question time: Revival, reach of Islamic finance

Question time: Revival, Reach of Islamic finance
By Rushdi Siddiqui
Business Times
May 2011

"It's polling time once again in Islamic finance but, today, we survey two major developments, Arab revolution and death of Osama Bin Laden (OBL), and examine the consequences, if any, on Islamic finance in the Maghreb and anti-syariah sentiment countries."

Read more: Question time: Revival, reach of Islamic finance 
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18.5.11

Islamic Finance and Sharia Compliant Transactions in India and Abroad: A Comparative Study

Islamic Finance and Sharia Compliant Transactions in India and Abroad: A Comparative Study
Tanay Nandi, National Law University Jodhpur (NLUJ)
Satabdee Mohanty, Gujarat National Law University
July 2010

Abstract: "One of the fundamental principles governing Islamic financing is that the receipt of interest is prohibited. This is categorically stated in the Qur'an: "Those who devour Riba (interest) will not stand except as stands one whom the devil hath driven to madness by (his) touch" (II:275) In an investment environment, Riba is interpreted as any return on money that is predetermined in amount and therefore includes modern day interest-based financing. Islamic principles allow instead for the replacement of interest by a return that is dependent upon the profitability of the underlying investment.


In addition, Islamic principles permit the financing of sales by means of deferred payment at a premium to the spot price. Modern scholars have also encouraged asset-backed finance where the return to the financier is linked either to the provision of an asset to the client or to the acquisition of an asset from the client. In all of the above a clear linkage emerges between the earning of returns and the assumption of risk.


But, in India it is in the embryonic stage. However, there are some non-banking cooperative societies being operated across the India that follows the fundament finance law. But, still no Islamic banks as per Reserve Bank of India’s norms have been settled in India.


This paper starts off by examining the banking structures with an Islamic finance window in other countries such as UK, Malaysia, Hong Kong etc, and goes on to examine the causes for its negligible presence in India and ends with emphasizing the need for a greater participation from the bankers in India in support of Islamic Finance."
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15.5.11

E&Y: World Takaful Report 2011

Ernst & Young’s World Takaful Report 2011
The fourth edition of Ernst & Young’s World Takaful Report 2011: Transforming Operating Performance, was unveiled recently.
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13.5.11

Financial Guarantee as Innovation Tool in Islamic Project Finance

Financial Guarantee as Innovation Tool in Islamic Project Finance
Issouf Soumaré, Laval University
Kabir M. Hassan, University of New Orleans
February 2006

Abstract: "This paper proposes a model to study the arrangement of Islamic project finance with the participation of the government as provider of loan guarantees. The entrepreneur (musharakah) initiates a project and raises funds by issuing Islamic profit sharing debt instruments (mudarabah). The government intervenes in providing financial guarantees in order to enhance the creditworthiness and increase the debt capacity of the project. Our work raises several policy implications related to the structuring of Islamic project finance and the participation of both government and multilateral public agencies such as the Islamic Development Bank. It provides a unifying framework for the improvement of access to funds for Islamic projects and gives a rationale for the government intervention in the arrangement of those projects."
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11.5.11

Islamic Economics, What Went Wrong?

Islamic Economics, What Went Wrong?
By Monzer Kahf

"Is Islamic economics independent from economics? Does it make a paradigm of its own?  Does it depend of a set of assumptions and analytical tools that is different from economics? Does it make a discipline of its own?"

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9.5.11

Risk & Return of Islamic Stock Market Indexes

Risk & Return of Islamic Stock Market Indexes
Conference Paper
Sam Hakim and Manochehr Rashidian
2002

Abstract: "The Dow Jones Islamic market index - US (DJIMI) tracks the stocks of corporations compatible with Islamic law. A parallel and unrestricted counterpart of DJIMI is the Wilshire 5000 Index (W5000) which tracks the price performance of the largest 5000 US companies. Of that index, approximately 75% of the companies fail to meet the Islamic criteria, leaving only approximately 700 companies as potential candidates for inclusion in the DJIMI. Using cointegration techniques we place the DJIMI under analytical scrutiny and ask (1) how has this selection restriction affected the performance of Islamic investments represented by the DJIM index? (2) is the DJIM index less diversified than the DJW index? (3) if so, to what extent has the limited diversification affected its risk and return? (4) and finally, what dynamic correlation and long-term relationship exist between the two indexes over time."
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7.5.11

Islamic Finance: an Ethical Alternative to Conventional Finance?

Islamic Finance: an Ethical Alternative to Conventional Finance?
Discussion Paper
ACCA - The Association of Chartered Certified Accountants ACCA

Islamic Finance : An Ethical Alternative to Conventional Finance ? – explores the basic tenets of Islamic finance, the role of the UK in leading its development and whether it is a serious alternative to conventional finance.
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4.5.11

True and Fair View - An Islamic Perspective

True and Fair View - An Islamic Perspective 
Doctoral thesis, University of Surrey
Bucheery, Raja Ali M (2001)
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1.5.11

Grooming Gen Y for Islamic Finance - Tweeting Islamic Finance

Grooming Gen Y for Islamic Finance
Tweeting Islamic Finance
By Rushdi Siddiqui
Global Head, Islamic Finance & OIC Countries, Thomson Reuters

Unless Islamic finance is made relevant to young people, it will struggle to gain popularity and grow in strength in the future.

Read the full article here.

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