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©2017 by Institute of Halal Investing. 

Articles

Mahmoud El-Gamal

Chair of Islamic Economics, Finance and Management 
Professor of Economics and Statistics
Rice University

Papers can also be downloaded from Mahmoud El-Gamal's website at Rice University


2006

"A Simple Fiqh-and-Economics Rationale for Mutualization in Islamic Financial Intermediation" 
• Download as .pdf, 162Kb

2005

"Islamic Finance in the Middle East for US Senate Committee on Banking, Housing and Urban Affairs hearing 'Money Laundering and Terror Financing Issues in the Middle East'", Testimony given July 13, 2005 
• Download as .pdf, 76Kb

"Mutuality as an Antidote to Rent-Seeking Shari`a-Arbitrage in Islamic Finance" 
• Download as .pdf, 226Kb

"A Call for Mutualization" 
• Download as .pdf, 311Kb

2004

"An Economic Explication of the Prohibition of Gharar in Classial Islamic Jurisprudence" 
• Download as .pdf, 224Kb

"Limits and Dangers of Shari'a Arbitrage" 
• Download as .pdf, 76Kb

2001

"An Economic Explication of the Prohibition of Riba in Classical Islamic Jurisprudence" 
• Download as .pdf, 178Kb

2000

"A Basic Guide to Contemporary Islamic Banking and Finance" 
• Download as .pdf, 324Kb

"The Economics of 21st Century Islamic Jurisprudence" 
• Download as .pdf, 278Kb

Undated

"'Interest' and the Paradox of Contemporary Islamic Law and Finance" 
• Download as .pdf, 789 Kb

 

Obiyathulla Ismath Bacha

Management Center
Kulliyyah of Economics & Management Sciences
International Islamic University Malaysia.


Mimi Hafizah Abdullah and Obiyathulla Ismath Bacha. "Halal Stock Designation And Impact On Price and Trading Volume,"
• Download as .pdf, 129Kb

Obiyathulla Ismath Bacha. "Derivative Instruments And Islamic Finance: Some Thoughts For A Reconsideration" (Published: International Journal of Islamic Financial Services, Vol. 1, No. 1, April В– June 1999). 
• Download as .pdf, 304Kb

Obiyathulla Ismath Bacha. "Adapting Mudarabah Financing to Contemporary Realities: A Proposed Financing Structure" (Published: The Journal of Accounting, Commerce & Finance, Vol. 1, No.1, June 1997)
• Download as .pdf, 281Kb

Obiyathulla Ismath Bacha. 2004. "Value preservation through risk management: a Shari'ah-compliant proposal for equity risk managment"
• Download as .pdf, 376 Kb

 

Microfinance

Feroz, Ehsan H., Goud, Blake & Rahman, Mohammad. 2008. "The Development and Implementation of Shari'ah-based Microfinance using the Grameen Group Financing Methodology". 
• Download article as pdf, 395 Kb

Feroz, Ehsan H. & Goud, Blake. 2008. "Grameen La Riba Model: A Strategy for Global Poverty Alleviation". 
• Download article as pdf, 254 Kb

Saleem, Amjad Mohamed. 2007. "Ethical Microfinance-Rethinking the Concepts". 
• Download article as pdf, 129 Kb

Obaidullah, Dr. Mohammed. 2007. "Islam, Poverty and Micro Finance 'Best Practices'" 
• Download article as pdf, 37 Kb

Goud, Blake. 2007. "Islamic Microfinance" 
• Download article as pdf, 96 Kb

Goud, Blake. 2007. "Islamic Microfinance: A New Approach to Fighting Poverty". Summary of the Harvard Islamic Finance Project conference: "Financing the Poor: Towards an Islamic Microfinance" 
• Download article as pdf, 120 Kb

Feroz, Dr. Ehsan H. 2007. "The Halal Way to Social Change," Islamic Horizons, January/February 2007, p. 42
• Download text of article as pdf, 72 Kb

Chowdhry, Sajjad. 2006. "Creating an Islamic Microfinance Model - The Missing Dimension", November 18, 2006 
• Download text of article as pdf, 222 Kb

 

Islamic Banking

Brown, Kym. 2003. "Islamic banking comparative analysis", Arab Bank Review, Vol. 5, No. 2, pp. 43-50.
• Download from Arab Bank Review as pdf, 216 Kb

Hassoune, Anouar. 2002. "Islamic banks' profitability in an interest rate cycle", Arab Bank Review, Vol. 4, No. 2, pp. 54-58.
• Download whole issue from Arab Bank Review as pdf, 1.9 Mb

van Schaik, Diederik. 2001. "Islamic Banking", Arab Bank Review, Vol. 3, No. 1, pp. 45-52.
• Download from Arab Bank Review as pdf, 60 Kb

 

General Islamic Finance

de Lorenzo, Sheikh Yusuf. 2008. "The Total Returns Swap and the 'Shariah Convergence Technology' Stratagem"

This study will look at Islamic values in financial decision-making by considering whether or not Shariah Supervisory Boards will approve any financial product that is delivered by ostensibly halal means, even if what is delivered by those means, the end product, is derived from non-compliant investments.

Usmani, Sheikh Taqi. 2008. "Sukuk and their Contemporary Applications" (trans. Sheikh DeLorenzo).

"Investment Sukuk worth enormous amounts have appeared in our times, and have been widely subscribed to by many Islamic banks. At the same time, many scholars have expressed their opinions in relation to the compliance of Sukuk with the precepts of the Shariah. Therefore, the Shariah Council in its prior meeting at al-Madina al-Munawwarah decided to study the subject at its next annual meeting in Makkah al-Mukarramah. As the responsibility to prepare a concise report of the issues requiring further study and debate was given to me, I have therefore prepared this modest brief as a working paper for discussion of the subject at the coming meeting, Allah willing."

"Islamic Finance: Meeting Financial Needs with Faith Based Products" by: Shirley Chiu and Robin Newberger from the Federal Reserve Bank of Chicago,Profitwise News and Views, February 2006, pp. 8-14.
• Download as .pdf file (FRB of Chicago), 103Kb

de Lorenzo, Sheikh Yusuf. 2008. "The Total Returns Swap and the 'Shariah Convergence Technology' Stratagem"

This study will look at Islamic values in financial decision-making by considering whether or not Shariah Supervisory Boards will approve any financial product that is delivered by ostensibly halal means, even if what is delivered by those means, the end product, is derived from non-compliant investments.

Usmani, Sheikh Taqi. 2008. "Sukuk and their Contemporary Applications" (trans. Sheikh DeLorenzo).

"Investment Sukuk worth enormous amounts have appeared in our times, and have been widely subscribed to by many Islamic banks. At the same time, many scholars have expressed their opinions in relation to the compliance of Sukuk with the precepts of the Shariah. Therefore, the Shariah Council in its prior meeting at al-Madina al-Munawwarah decided to study the subject at its next annual meeting in Makkah al-Mukarramah. As the responsibility to prepare a concise report of the issues requiring further study and debate was given to me, I have therefore prepared this modest brief as a working paper for discussion of the subject at the coming meeting, Allah willing."

"Islamic Finance: Meeting Financial Needs with Faith Based Products" by: Shirley Chiu and Robin Newberger from the Federal Reserve Bank of Chicago,Profitwise News and Views, February 2006, pp. 8-14.
• Download as .pdf file (FRB of Chicago), 103Kb

 

Mughees Shaukat

Head, Islamic Finance

College of Banking and Financial Studies

Under Central Bank of Oman, Muscat, Sultanate of Oman

Email: mughees@cbfs.edu.om

Website:www.cbfs.edu.om


The Nexus between Business Ethics and Economic Justice: An Islamic Framework

The aftermath of recent financial crisis has added fresh impetus to the belief where non-adherence to business ethics is viewed a powerful contributor to the fallouts. Scholarship has asserted on the nexus between business ethics and economic justice; sufficing it pivotal for the development of the societies. It has been shown that absence or lack of adherence to ethics has resulted in mal- distribution of income and wealth and economic resources; intensifying class culture and breed of economically deprived. Different strand of theories were put forward in explaining the notions and the relationship of the same. Consequently, a number of models and frameworks has been circulated, over the decades, to provide philosophical underpinnings. The current study will not only dwell on the known theories of ethics and justice but will put forward a relevant framework from an Islamic perspective. It will be argued that a system based on the proposed framework not only offers a unique and all-encompassing nexus of business ethics and economic justice but simultaneously provides the institutional scaffolding that essentially maintains the same. [+] Read full article


Islamic Finance, in a the age of Black Swans and Complexities, for a Multipolar World

The recent financial developments have given rise to a developing consensus that the Unipolar economic growth regime dominated by U.S, Japan and few European centers, is under great stress. The consensus takes into consideration the present financial complexities, stresses and strains, and the ensuing uncertainty surrounding the sustainability of the unipolar regime, which has given way to a shift towards a multipolar economic setup. Scholarship has already hinted on not only better trade and investment opportunities, but also on a much more resilient global economic growth that such a shift can bring. However, there are some major obstacles that need to be overcome in order to reap fully the desired benefits of multipolarity. Continuation of debt-based financing regime (the hallmarks of which are risk transfer and risk shifting) will not necessarily allow the benefits of emerging multipolarity to accrue to the world economy. The new system can be more effective with a new regime of financing. Indications are that almost all emerging countries in Asia are actively considering risk sharing via Islamic finance as a possible alternative. [+] Read full article

Common Structures of Sukuk

Recent innovations in Islamic finance have changed the dynamics of the Islamic finance industry. Specially in the area of bonds and securities the use of Sukuk or Islamic securities have become increasingly popular in the last few years, both as a means of raising government finance through sovereign issues, and as a way of companies obtaining funding through the offer of corporate sukuk. Sukuk has developed as one of the most significant mechanisms for raising finance in the international capital markets through Islamically acceptable structures . Multinational corporations, sovereign bodies, state corporations and financial institutions use international sukuk issuance as an alternative to syndicated financing. [+] Read full article

Sale of Goods and Sale of Debt: A Comparative Analysis

Law is concerned, primarily, with fairness whereas social good, including economic good, is conceived in terms of provisions that depend, ultimately, on production. Fairness is necessary for ensuring dignity whereas wealth is needed to guaranty security. It goes without saying that Islamic economics as a discipline cares about efficiency as well as justice and fairness. It is well aware of the fact that in a balanced realization the two reinforce each other. This paper will propose to demonstrate the ever so prevalent and dynamically wisdomful nature of Islam even enshrined through Islamic finance by venturing into a detailed debate rooted from and to the very foundational paradigm of TRADE, the concept of exchange of property, selling and buying. Incept- ionizing from the submerged argumentation over the permissible stacked up with the non-permissible stretching to the dimensions of understanding the basic concepts and then gliding to the depths of despair by permitting the non-permissible pinnacled by modern financial instruments and concluding in more a self explanatory parlance. [+] Read full article

General Perception of Fatwa and its Role in Islamic Finance

In the technical language of Shari`ah, the word fatwa clarifies the Islamic ruling in an answer given to question or a set of questions usually related to an Islamic issue. It does not make any difference whether the questioner is a person or a group of persons. It stands to reason that fatwa is not an easy task, but rather an arduous one. This is because the one who commits himself to issuing fatwas acts on behalf of Allah's Messengers and Prophets. The Prophet (peace and blessings be upon him) is reported to have said: "Scholars are the heirs of Prophets, and Prophets neither left behind dinars nor dirhams (Arab coins); rather they left knowledge. He who acquires knowledge has really gained something of great value." This paper will not only explore the meaning and perception of fatwa as a whole but would also link and reflect on its influence, bearings and links to Islamic finance. [+] Read full article

The Recent Financial Growth of Islamic Banks and Their Fulfillment of Maqasid Al-Shariah: Gap Analysis

Initially conceived in response to a faith-based logic of conforming to the principles of shariah in all spheres of life, the astounding growth of Islamic finance industry can be judged by the rapid pace at which the Islamic financial institutions (IFIs) are evolving around the world, where they co-exsist with a parallel system of conventional financial service. Growing at a rate of 10-15 percent per annum in the last decade, today the Islamic financial industry comprises of a range of financial institutions, including banks, non-banks finance companies, venture capital firms, insurance companies, mutual funds etc. However in the midst of all this boom one must not forget the real foundational purpose of these Islamic financial institutions and must relate to the fact that how much this recent growth is in line, based and driven by their foundational purposes i.e. MAQASID AL-SHARIAH. This study focuses exactly on this aspect and hence comes up with some meticulous analysis to assess the gap between this pomped financial growth and its compatibility with maqasid al-shariah by providing a litmus test for judgmental philosophies and hence in a niche effort to locate the gap between the two. [+] Read full article