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 ?
Capital Finance International in the UK has awarded Ethica Institute of Islamic Finance in Dubai with the award for best online Islamic finance education provider, the company said.
M2 EQUITYBITES-April 29, 2016-Ethica wins Islamic finance education award
Professor Iraj was a visiting professor at INCEIF (International Centre for Education in Islamic Finance) where he taught on Islamic Banking and Islamic Capital Markets.
MANAMA: The CEO of Islamic Corporation for the Development of the Private Sector (ICD), Khaled Al-Aboodi, was awarded the prestigious "Islamic Finance Personality of the Year" for his outstanding contribution to the development of the Global Islamic finance industry.
He said Kazakhstan is one of the leaders of Islamic finance in the region of Central Asia and the CIS, reports Primeminister.kz.
Of the total graduates, six are Ph.D in Islamic Finance, 33 are Masters in Islamic Finance (MIF), three are Master of Science in Islamic Finance (M.Sc IF), 45 are Master of Islamic Finance Practice (MIFP) and 124 are Chartered Islamic Finance Professional (CIFP).
MANAMA: For the second year in a row, Bahrain has been named the GCC's leading Islamic finance market and second out of 92 countries worldwide.
This rapid growth has led to a profound need for skilled Islamic finance professionals, as the World Islamic Economic Forum (WIEF) predicted that in the next 5-7 years the Islamic finance sector will require the addition of around 50,000 professionals.
CIMA was named best Islamic finance education provider, having introduced the world's first professional Islamic finance course in 2008.
| LONDON, Oct 30 (KUNA) -- Building on the Prime Minister's announcement that Britain would become the first non-Muslim country to issue an Islamic bond, Financial Secretary to the Treasury Sajid Javid unveiled the Islamic Finance and Investment Group at the Ninth World Islamic Economic Forum (9th WIFE) here on Wednesday.
Summary: Muscat: KPMG announced that its next Breakfast Seminar would be on 'Accounting for Islamic Finance" ...
The ongoing shift by African countries from being aid-dependant to increasing trade and investment ties with the Middle East has positioned Islamic finance to play a key role in facilitating further increases in trade and investment flows between Africa and the Middle East.

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