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Islamic finance and financial instruments

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  • Is there a critical but analytical evaluation of Islamic financial instruments? I need more than a yes or no answer and more than a link or two as I've done most of the search myself so the information provided must new and current, if possible.


  • Dear Dindish, Here are several sources. Most of them are unfortunately off-line, or fee-based when online (you can access them through a library that has a subscription for free). However, there are some that are open to the general public online. First of all, check issues of the following journals: - International Journal of Islamic Financial Services - Review of Middle East Economics and Finance Here are some websites, most of them (or the articles mentioned) would help you get a general imperssion on the subject: Mohamed Ariff, "Islamic Banking", Asian-Pacific Economic Literature Vol. 2, No. 2 (September 1988), pp. 48-64 World Bank: ZAMIR IQBAL, "Islamic Financial Systems" , World Bank - 1997, http://www.worldbank.org/fandd/english/0697/articles/0140697.htm> American Journal of Islamic Finance Islamic Finance.de Ravil Hairetdinov. Islamic Financial System. International Islamic Financial Market Islamic Financial Services Board Islamic Banking/Finance However, for a real in-depth analysis, you'll have to read academic (or academic-level) articles on the subject, as well as books. Here is a list of recent journal (peer reviewed) articles that discuss the subject: Kym Brown, 2003. "Islamic Banking Comparative Analysis". The Arab Bank Review, Vol. 5, No. 2 October 2003. Humayon A. Dar and John R. Presley, 2000. "Lack of Profit Loss Sharing in Islamic Banking: Management and Control Imbalances", Loughborough University Centre for International, Financial and Economics Research Ebrahim, M.-S. (2000) : Pricing Asset Backed Islamic Financial Instruments , International Journal of Theoretical and Applied Finance 3(1), 59-83. Ebrahim, S.; Khan, T.(2002)., "On the Pricing of an Islamic Convertible Mortgage for Infrastructure Project Financing", International Journal of Theoretical and Applied Finance, Vol.5 (7), pp.701-729. Ebrahim, S.; Rahman, S.(2005)., "On the Pareto-Optimality of Conventional Futures over Islamic: Implications for Emerging Muslim Economies", Journal of Economic Behaviour and Organisation, Vol.56 (2), pp. 273-295. Ebrahim, S.; Tan, K.J.(2004)., "Islamic Banking in Brunei Darussalam", in Subbulakshim, V (ed) Islamic Banking: Cases and Profiles, pp.112-142, India, ICFAI University Press. Dahlia El - Hawary, Wafik Grais, and Zamir Iqbal. 2004. "Regulating Islamic Financial Institutions: The Nature of the Regulated", World Bank Policy Research Working Paper 3227, March 2004 A.L.M. Abdul Gafoor, 2001. "Mudaraba-based Investment and Finance" see also ISLAMIC BANKING & FINANCE, Abdullah M Noman, 2002. "Imperatives of Financial Innovation for Islamic Banks", International Journal of Islamic Financial Services, Vol.4, No.3, F. Nomani. 2003. "The problem of interest and Islamic banking in a comparative perspective: the case of Egypt, Iran and Pakistan". Review of Middle East Economics and Finance, vol 1., no 1. Download fro a fee at Hussain G. Rammal, 2004. "Financing Through Musharaka: Principles And Application", B Quest, A Journal of Applied Topics in Business and Economics Ali Arsalan Tariq. 2004. _MANAGING FINANCIAL RISKS OF SUKUK STRUCTURES_ (Dissertation) Tarek S. Zaher & M. Kabir Hassan, 2001. "A Comparative Literature Survey of Islamic Finance and Banking" Financial Markets, Institutions & Instruments Volume 10 Issue 4 Page 155 - November 2001 Availale through Microfinance Gateway: Books: Ahmad, Ausaf and Khan, Tariqullah eds., (1998), Islamic Financial Instruments for Public Sector Resource Mobilization, Jeddah: IRTI Clement M. Henry and Rodney Wilson (eds.) 2004. _The Politics of Islamic Finance_ Edinburgh: Edinburgh University Press - is considered a very good analysis and introduction to the issue. Timur Kuran, 2004. _Islam and Mammon : The Economic Predicaments of Islamism_ Princeton University Press - provides a critical view of Islamic financial instruments and "Islamic economies". Frank E. Vogel, Samuel L. Hayes, 1998. _Islamic Law and Finance: Religion, Risk, and Return_ Brill Academic Publishers Ibrahim Warde, 2000. _Islamic Finance in the Global Economy_ Edinburgh University Press Market Research: Research and Markets, 2005 - forthcoming*. Structuring Islamic Finance Transactions (*the report will be published in October 2005 = next month). Additional Information ====================== Very recent analysis, of course, comes from new resources, but is very limited by nature: "Sukuk to grow to $1.5 trillion in 10 years" Bahrain Tribune, 29/08/2005, "Challenges facing Islamic financial institutions", Khaleej Times, 5 August 2005 PATRICK O'GILFOIL HEALY. "For Muslims, Loans for the Conscience", New York Times, August 7, 2005, I hope this answers your question. Please contact me if you need any clarification before you rate this answer. My search terms: Ijara, "Islamic financial instruments", "Nomani" "* problem * interest *", "How" "Islamic financing * bank", Determinants of Islamic Banking Profitability, "Zaher" "* Comparative Literature Survey", International Journal of Islamic Financial Services, "Ebrahim" "Pricing Asset Backed", sukuk, mudaraba - and other related terms.







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