Harvard Islamic Finance Project DataBank

The Harvard Islamic Finance Project (IFP) website contains reports of IFP events for the past sixteen years and the Databank with over 9,000 records which include bibliographic information along with abstracts on articles, books, book chapters, conferences and theses relevant to the field of Islamic finance and economics. In addition to these resources, a collection of Quranic verses and hadith as well as a glossary of terms related to Islamic finance are included.


Users can register and access the Databank free of cost at http://ifp.law.harvard.edu. The IFP also features an option for users to submit their own published work or any relevant items via "Submit Your Work" option on the menu bar.


Many thanks to Muhammad Hassaan Yousuf for highlighting this resource.

Harvard Islamic Finance Project DataBank

Economic Performance of the OIC Countries and the Prospect of an Islamic Common Market

Economic Performance of the OIC Countries and the Prospect of an Islamic Common Market
By Kabir Hassan

Abstract: "This paper examines economic performance of the OIC member countries and analyzes the prospect of Islamic common market by analyzing trade data within a gravity model framework. There is scope of trade creation for OIC member countries if all impediments to trade and business can be eliminated. The paper also examines various sub-regional grouping within the context of gravity model, and finds that D8 comprising eight bigger OIC member countries is trade creating. For example, two countries in D8 block would trade 22 times more among themselves than two otherwise-similar country in outside the block would. The paper suggests a number of policy parameters which if followed will lead to more trade among member countries. The issue of Islamic common market should be examined further in light of new data and changed global perspectives. This paper is complements and extends Hassan (2002) and Hassan and Islam (2001), where similar conclusions were derived and policies were suggested."

Economic Performance of the OIC Countries and the Prospect of an Islamic Common Market

Strategic Trends in the Islamic Banking and Finance Movement

Strategic Trends in the Islamic Banking and Finance Movement
By Monzer Kahf

Strategic Trends in the Islamic Banking and Finance Movement

Risk Management in Islamic and Conventional Banks: A Differential Analysis

Risk Management in Islamic and Conventional Banks: A Differential Analysis
Amanat Ali Jalbani and Salman Ahmed Shaikh
Journal of Independent Studies and Research
July 2009

Abstract: "Islamic banking is interest-free banking which makes it necessary for Islamic banks to take active part in the operations of the business, i.e. share profits as well as losses. Banks including Islamic banks prefer to take minimum risk. On the surface, it may seem that Islamic banks face more risk and hence, will have more volatile or even negative returns on their assets.

This paper analyzes the risk management procedures of Islamic banks by giving a differential analysis of risk management discussing only the unique characteristics of risk management in Islamic Banking. The usual credit assessment procedures and BASEL are not discussed. This paper looks at the comparative performance of Islamic banks and conventional banks by using ROE as the benchmark."

Risk Management in Islamic and Conventional Banks: A Differential Analysis

Islamic Economics: Notes on Definition and Methodology

Islamic Economics: Notes on Definition and Methodology
By Monzer Kahf

"This paper aims at examining the implications of different suggested definitions of Islamic economics, exploring its scope and attempting to outline its methodology."

Islamic Economics: Notes on Definition and Methodology

The 1997-98 East Asian Financial Crises: an Islamic Perspective

The 1997-98 East Asian Financial Crises: an Islamic Perspective
By Adam B. Elhiraika

Abstract: "This paper examines the causes and policy implications of the 1997-98 financial crises in East Asia from an Islamic perspective. The paper suggests that the crises may be better understood as consequences of internal contradictions in the interest-based financial system as regards risk and return sharing between financiers and entrepreneurs. The analysis challenges orthodox policy prescriptions and concludes that the Islamic principle of partnership in finance, which calls for profit and loss sharing and emphasizes the need for project finance, seems to provide the ingredients for the long-sought solutions."

The 1997-98 East Asian Financial Crises: an Islamic Perspective

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?"

Islamic Economics, What Went Wrong?

Risk and Stability in Islamic Banking

Risk and Stability in Islamic Banking
Pejman Abedifar, Philip Molyneux, Amine Tarazi
April 2011

Abstract: "This paper investigates risk and stability features of Islamic banking using a simultaneous modeling framework and a sample of 456 banks from 22 countries between 2001 and 2008. We find no significant difference between Islamic and conventional banks in terms of insolvency risk. The results on credit risk suggest that Islamic banks write-off credits more frequently or/and have lower loan recoverability compared to conventional banks. We also observe that Islamic banks benefit less than conventional banks from the negative impact of asset size on both their credit and insolvency risks. Our results are robust to different samples, estimation procedures, risk variables and other modeling specifications."

Risk and Stability in Islamic Banking

A Universal Platform for Shari'a Compliant Equity Screening

A Universal Platform for Shari'a Compliant Equity Screening
Oxford Islamic Finance & Dar Al Istithmar
White Paper
July 2009

A Universal Platform for Shari'a Compliant Equity Screening

Call for Papers - Eight International Conference on Islamic Economics & Finance

Eight International Conference on Islamic Economics & Finance
"Sustainable Growth and Inclusive Economic Development From An Islamic Perspective"
Doha, Qatar
December 25-27, 2011


Call for Papers:  The global economy continues to face the perennial problems of poverty, persistent youth unemployment, excessive inequalities of income and wealth, high levels of inflation, large macroeconomic and budgetary imbalances, exorbitant debt-servicing burdens, inadequate and aging public utilities and infrastructure, skyrocketing energy prices, and growing food insecurity. The reoccurring regional and global financial crises further intensify and magnify these problems particularly for the underprivileged segments of the world population. As a result, many countries are at the risk of failing to achieve the Millennium Development Goals (MDGs) set by the United Nations. However, some countries also present optimistic experiences to share, and from which useful lessons can be drawn for shaping the future economic scene in other countries.

The Eighth International Conference on Islamic Economics and Finance is jointly being organized by the Qatar Foundation’s Faculty of Islamic Studies (QFIS) through its Islamic Economics and Finance Center, the Islamic Development Bank Group through its Islamic Research and Training Institute (IRTI), and the International Association for Islamic Economics with the support of other stakeholders. The Conference will provide a platform for dialogue and discussions between policymakers, academics, researchers, graduate students, and practitioners to address the problems of poverty alleviation, inclusive economic growth, and macroeconomic stability from the perspective of the Islamic Economics and Finance discipline. The Conference will be held for three days during December 25 – 27, 2011 in Doha, Qatar.
Theoretical and empirical research papers are invited in Arabic and English languages for submission to the Conference in the following and related areas, subject to the conditions described in this announcement.

Tickets and Hotel: One author of each accepted paper will be paid by IRTI round-trip economy class air tickets, and hotel stay, including food during the conference.

Dates to Watch: 
Submission of abstracts with CVs April 15th
Decision of Academic Committee May 5th
Submission of First Draft of Papers July 15th
Decision of Academic Committee August 15th
Submission of Final Draft October 10th

Download Call for Papers:
http://www.qfis.edu.qa/files/pdf/Eigth%20Int%20Conf%20Call%20for%20Papers.pdf

With sincere thanks to Dr. Taruqullah Khan for highlighting this information.

Call for Papers - Eight International Conference on Islamic Economics & Finance

Islamic Securitisation: Part II - A Proposal for International Standards, Legal Guidelines and Structures

Islamic Securitisation: Part II - A Proposal for International Standards, Legal Guidelines and Structures
Mohammad Saad Lahlou, University of Westminster, School of Law
Joseph Atangan Tanega, University of Westminster, School of Law
June 2007

Abstract: "The authors propose that international standards for cross-border Islamic Securitisations be established to help overcome legal uncertainties. Given the principles of Sharia law, templates for a number of Islamic financial instruments are examined together with some examples of successful international transactions."

Islamic Securitisation: Part II - A Proposal for International Standards, Legal Guidelines and Structures

Islamic Securitisation: Part I - Accommodating the Disingenuous Narrative

Islamic Securitisation: Part I - Accommodating the Disingenuous Narrative
Mohammad Saad Lahlou, University of Westminster, School of Law
Joseph Atangan Tanega, University of Westminster, School of Law
May 2007

Abstract: "The article examines the fundamental principles, substance versus form, and operational elements of Islamic finance as applied to Islamic securitisation. We review some central aspects of the ideological and spiritual tradition of Sharia compliance as applied to a typical asset backed securities transaction."

Islamic Securitisation: Part I - Accommodating the Disingenuous Narrative

The Relationship between Jakarta Islamic Index and Other Selected Markets

The Relationship between Jakarta Islamic Index and Other Selected Markets: Evidence from Impulse Response Function
Irfan Syauqi Beik, Lecturer and Researcher at the Department of Economics, Bogor Agricultural University, Indonesia
Wisnu Wardhana, Postgraduate Student of the International Islamic University Malaysia, Researcher of ISEFID (Islamic Economic Forum for Indonesia’s Development)

Abstract: "The financial crisis, which was triggered by the subprime credit in the United States, is probably the most severe crisis for the last century. It has affected many countries in the world including Indonesia. In spite of worsening financial market in recent months, Indonesia has a great potency to be a hub for international Islamic finance. This paper attempts to analyze Indonesia’s Islamic Stock Market, namely Jakarta Islamic Index (JII), in relation with other Islamic as well as conventional stock markets in Malaysia and the United States, especially during the subprime crisis which started in early 2006. This research uses daily closing data of stock price indices obtained from Bloomberg database from January 1, 2006 until December 31, 2008. It employs time series analysis of cointegration and impulse response function. The results show that there is no long run relationship between Indonesia’s capital market and both Malaysia and the US markets. For investors, the results will give them choices for their investment portfolio. Meanwhile, in Indonesia’s perspective, this should be an opportunity for promoting its capital market as the potential destination for profitable investment. In the short run, the JII is significantly affected by the shock or disturbance taking place in the other markets. However, the results also indicate that the JII is the least volatile and more stable market."

The Relationship between Jakarta Islamic Index and Other Selected Markets

Central banking and monetary management in islamic financial environment

Central banking and monetary management in islamic financial environment
Hanif, M. Nadim and Sheikh, Salman
July 2010

Abstract: "Continuous growth in Islamic finance calls for studying the framework in which the monetary policy maker (i.e., central bank) performs its functions. Central banks in Muslim countries are using various instruments for monetary policy purpose including interest rate. As a result, Islamic financial institutions (IFIs) are facing issues in benchmarking the price of financial instruments. Acceptable solution to benchmarking lies in the presence of a real economic activity in the base of any proposal and its feasibility for business performance when put against conventional banking. This paper presents empirical evidence of statistical equivalence of nominal GDP growth rate and official interest rate for ‘advanced,’ ‘all,’ and some Muslim countries. We propose nominal GDP growth rate as benchmark for pricing domestic financial transactions of IFIs as well as for pricing external bilateral/ multilateral loans. The paper also suggests nominal income targeting as monetary policy regime and provides a liquidity management mechanism for banking system in Islamic financial environment."

Central banking and monetary management in islamic financial environment

New kid in the block: QScience Journal of Contemporary Islamic Studies

QScience Journal of Contemporary Islamic Studies
An interdisciplinary journal covering the following major themes in Islamic studies: Contemporary Islamic jurisprudence; Islamic history and civilization; Comparative religions and modern Islamic thought; Islamic economics and finance, Public policy in Islam.  A Qatar Foundation Academic Journal.

Their first editorial article can be viewed here:
Islamic finance: some aspects of the research and policy nexus
Tariqullah Khan
December 2010

Abstract: "Islamic finance is a dynamic, practical and academic field of contemporary Islamic studies. It is based on the universally shared ethical values of transparency, fairness and justice and operates in conformity with the Shariah in the framework of laws existing in a jurisdiction. During the past 35 years Islamic finance has emerged as a way of financing production, projects and trade and facilitating the required financial intermediation and payments systems. The recent global financial crisis has increased interests in the Islamic finance business model. The focus has been on the products offered by Islamic finance, its architectural foundations, the unique risks of its assets and liabilities and its implications for the inclusiveness and stability of the interconnected financial systems. In the coming years we expect that these interest areas will remain in focus of the academic and policy research works in the field of Islamic finance. This note intends to highlight some of the pertinent themes in the research and policy nexus related to Islamic finance."

New kid in the block: QScience Journal of Contemporary Islamic Studies

Opalesque Islamic Finance Intelligence - Fifteenth Issue

The fifteenth edition of OIFI is here (download the PDF version) and you might notice our front cover is slightly different. Since inception we have avoided profiling any specific individual or personality, in part to differentiate OIFI with so many other finance publications and because our focus has always been poignant and relevant content (not to mention the fact that such portraits are cheesy too). This edition explores, among other things, the conscience of the industry as we ask ourselves: What is Islamic finance? What is the message being conveyed? Who can be part of this industry? How do we communicate the message more effectively? The front cover illustrates this puzzle (and hints to the answers).

Our Editorial tackles the approach we take not only to define Islamic finance but, increasingly, on how we communicate it to others. On the other end our Featured Resource is a short compilation of materials concerning Islamic Economics, an often distant topic to Islamic finance but one that is undergoing a similar revival and evolution.

The Featured Structure segment has Jhordy Kashoogie analyzing the debate behind the permissibility of trading sukuk, and this is further complemented by the Discussion Board which brings along feedback from practitioners on the same subject. Lex Islamicus welcomes back Hakimah Yacoob as she discusses financial criminology and financial victimology from the perspective of Islamic finance.

The Industry Snapshot introduces a recurring series of articles on EPL in Islamic finance (Education, Perception and Liquidity), which has been developed by Deloitte's Daud Vicary. Lastly the Opinion Column examines the growing concerns regarding career development and deployment of human capital in the industry, with Mohammed Khnifer highlighting some of the main obstacles faced by today's would-be Islamic bankers.

We encourage feedback from our readers and welcome comments & suggestions to make OIFI better. In addition, please remember that you can visit our historical 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: Islamic Finance Incommunicado
Featured Resource: Islamic Economics
Featured Structure: Shari'a Polemics of Sukuk Trading
Discussion Board: Sukuk Trading - Deviation Between Theory and Practice?
Lex Islamicus: Financial Criminology v Financial Victimology in Islamic Practice
Industry Snapshot: E.P.L. in Islamic Finance - Education
Opinion Column: Voices of the Unheard - Salvaging the Next Generation of Islamic Bankers

Opalesque Islamic Finance Intelligence - Fifteenth Issue

An Approach to Islamic Economics

An Approach to Islamic Economics
Dr. Mohammad Nejatullah Siddiqi
October 2007

"The subject matter of economic analysis, behavior of economic agents, is susceptible to human volition. There are no iron laws. One can do things in a manner then change to another way of doing. In one’s choice of how to behave/do things, one is influenced by a number of factors. Self- interest seems to be the most influential of these. But tradition, what the others are doing, what is the easiest course of doing, impact on others, public interest, what is morally preferable, what is spiritually higher, etc. are also involved.

Some abstraction is necessary for scientific analysis to proceed. Traditions change only in the long run and can be abstracted away in a short-term analysis. Demonstration effect and peer pressure also belong to that category, though to a lesser extent. Taking the easiest course (by maintaining the status quo, for example) leads to different paths in different cases and cannot be handled scientifically. It is better left to be taken into account at the policy level, if and when needed. The remaining four factors are of a different nature. They should not be abstracted away without careful consideration of the implications of doing so."

An Approach to Islamic Economics

The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study

The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study
Maher Hasan and Jemma Dridi
Monetary and Capital Markets Department & Middle East and Central Asia Department
September 2010

For an additional discussion of this paper please check Blake Goud's analysis on the SharingRisk.Org blog.

Abstract: "This paper examines the performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share. Our analysis suggests that IBs have been affected differently than CBs. Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008, while weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs. IBs‘ credit and asset growth performed better than did that of CBs in 2008–09, contributing to financial and economic stability. External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable."

The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study

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

Opalesque Islamic Finance Intelligence - Twelfth Issue

Interest, Mark up and Time Value of Money

Interest, Mark up and Time Value of Money
By Muhammad Ayub
Senior Joint Director, Islamic Banking Department
State Bank of Pakistan, Karachi

Interest, Mark up and Time Value of Money