Islamic Finance

Islamic Finance

The range of financial transactions that conform to the sharia, or Islamic law. Islamic finance forbids investment in industries considered sinful, notably alcohol, pornography and armaments. Islamic law also forbids the payment or receipt of interest. This forces credit to be either interest-free, or, more commonly, to take the form of a partnership or joint venture. For example, a bank could buy an asset for cash and then re-sell it to the "borrower" for a profit such that the profit is the same as the bank would have made had it extended a regular loan.

Islamic finance also forbids speculation. Thus, futures contracts and options are not permissible. These restrictions have made Islamic finance rather risk averse; it has a tendency to invest in fixed assets with an intrinsic value apart from the transaction. Critics within Islam claim that Islamic finance imitates conventional finance and therefore is not truly "Islamic." However, it became a major growth sector within finance in the early 2000s. See also: Sukuk, Murabaha, Mudharaba, Musharika.
References in periodicals archive ?
LAHORE -- Islamic finance professionals, academics and researchers on Tuesday gathered at the Global Forum on Islamic Finance (GFIF) 2018, a two-day conference organised by the Centre of Islamic Finance of the COMSATS Institute of Information Technology.
KARACHI -- Pakistan has all the ingredients necessary to become a hub of Islamic finance, financial experts stated after it was revealed that the country would host the World Islamic Finance Forum (WIFF) 2018.
In particular, I was excited to see HE Abderrahim Bouazza, Director-General, Bank Al-Maghrib of Morocco come after the year that Morocco has had in establishing Islamic finance in the country, a monumental move for the industry.
The value of the Islamic finance indus- try's assets reached $2 trillion at the end of 2016 but it still makes up a small por- tion of the global financial system.
Central Asia's largest country Kazakhstan, with a Muslim-majority population of around 18mn people, is sustainably entrenching its role of becoming the region's centre of Islamic finance and banking.
Whether you call it Fintech, Insure-tech or Takaful-tech, Fintech has become a buzzword in the Islamic finance industry.
What are the key challenges facing Islamic finance in 2017, and how are you working to overcome those challenges?
The UK has played a central role in growing the global footprint for Islamic finance over the past several years, with significant growth at the turn of the century when the Islamic Finance taskforce was established by the government.
The new markets of Islamic finance also known as "developing markets" serve as the key to globalize Islamic finance as well as strengthen the cross-border linkages.
PESHAWAR -- The signing ceremony of the Memorandum of Understanding (MOU) between the Centre for Excellence in Islamic Finance (CEIF) IMSciences and International Shariah Research Academy for Islamic Finance (ISRA) held on Thursday at ISRA, Malaysia.
M2 EQUITYBITES-April 29, 2016-UK confirmed as lead western hub for global Islamic finance

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