Islamic Finance Resources for Teachers, Learners and Researchers

2012-02-13T21:19:00.000-08:00

Islamic Finance: Theory and Practice

"Risk sharing in Islamic finance - an analysis of issues with special reference to Pakistan", a Doctoral Thesis submitted in fulfilment of the requirements for the award of Ph.D. by the Department of Economics, Loughborough University, United Kingdom, September - 1996, Supervisor: John R. Presley

Download thesis from the British Library

Tariqullah Khan

Chapter 1 - Introduction

Chapter 2 - Islamic Finance in Theory: Evolution and Economics of Profit Sharing

Chapter 3 - Islamic Finance in Theory: Evolution and Economics of Mark-Up

Chapter 4 - Islamic Finance in Practice: Relative Significance of Profit-Loss Sharing and Mark-Up in Islamic Banking

Chapter 5 - Islamic Finance in Practice: Market Performance of Profit-Loss-Sharing with Special Reference to the Pakistani Modaraba Companies

Chapter 6 - Profit-Loss Sharing in Retrospect: Firm Level Considerations

Chapter 7 - Profit-Loss Sharing in Retrospect: Open Economy Considerations with Special Reference to Pakistan

Chapter 8 - Towards A Contractual Model of Profit-Loss-Sharing

Chapter 9 - Conclusions and Implications

Bibliography

CONTENTS IN DETAIL

ABSTRACT

The Islamic law prohibits charging and paying of interest but allows earning profits on the basis of participation in the market. This legal injunction has motivated the establishment and successful operation of a number of Islamic financial institutions. The emergence and rise of these institutions is an important academic and practical development of our time. The theory of Islamic finance evolved on the basis of profit and loss sharing (PLS) principle underlying participatory Islamic financial contracts. However, the practice of Islamic finance does not conform to the theory and overwhelmingly relies on the mark-up principle which underlies deferred trade. The PLS is in striking contrast to the interest mechanism, but the mark-up is not.

The present research inquires the causes underlying the negligence of the mark-up mechanism at the time when the theory was developing. Looking at the preferences of users and suppliers of funds, the causes of the overwhelming use of mark-up in the practices of Islamic finance are also analyzed. Pakistan has remained at the forefront of financial Islamization. The research also draws on this practical experience with a view to explore how the market rewards risk. The study also analyzes the prospects of financial Islamization in a real world scenario in which most Muslim countries rely substantially on foreign financial resources.

The central conclusion of the study is that the mark-up and PLS mechanisms have their own merits and weaknesses. The merit of the mark-up is that it facilitates the acquisition of assets. The merit of the PLS is that it links financiers’ interests with the outcome of projects. The study concentrates on the analysis of the inherent characteristics of the PLS and mark-up as parent principles of Islamic finance rather than the institutional environment in which these are practiced. It implies that given the market environment, the strength of Islamic finance lies in the integration of the prime merits of mark-up and PLS and in developing a comprehensive set of Islamic financial instruments.

ACKNOWLEDGEMENTS

I have undertaken this research while working at the Islamic Research and Training Institute, the Islamic Development Bank. Without an opportunity to work at these institutions I will not have been able to complete the work. My foremost gratitude goes to my institutions for providing me the opportunity to work as a researcher. Among many people who have contributed to the progress of this research in different ways, the following deserve special mentioning: John R. Presley, my research supervisor, whose initiative, encouragement and guidance made it possible for me to present my work in the present form, my colleagues Monzer Kahf and Boulem Ben Djilali with whom I worked on beneficial joint papers, M. Fahim Khan, who motivated me to register for a research degree and encouraged me in pursuing it, M. Nejjatullah Siddiqi who helped me in focusing on the issues pursued in this research, Nevzat Yalcintas, Korkut Ozal, Munawar Iqbal, Hasmet Basar, Sami Homoud, Ausaf Ahmad, Abdallah Gul, Hussain Kamel Fahmi, M. A. Zarqa, M. Ali Al Qari, Leyachi Feddad, Mahmoud Gulaid, and Osman Babikir from whose comments and observations I benefited. To all these wonderful friends, I owe my sincere gratitude. Views, interpretations, and omissions and errors are my sole responsibility.

Tariqullah Khan

2012-02-10T22:12:00.000-08:00

Papers presented to the

8th International Conference on Islamic Economics and Finance

Sustainable Growth and Inclusive Economic Development from an Islamic Perspective

Qatar National Convention Center – Doha

19-21 December 2011

AL-MAJALLA AL AHKAM AL ADALIYYAH (The Ottoman Courts Manual (Hanafi))

2010-03-03T21:52:00.000-08:00

AL-MAJALLA AL AHKAM AL

ADALIYYAH

(The Ottoman Courts Manual (Hanafi))

Introduction

Book 1: Sale

Book 2: Hire

Book 3: Guarantee

Book 4: Transfer of Debt

Book 5: Pledges

Book 6: Trust and trusteeship

Book 7: Gift

Book 8: Wrongful Appropriation and Destructions

Book 9: Interdiction, Constraint and Pre-emption

Book 10: Joint Ownership

Book 11: Agency

Book 12: Settlement and Release

Book 13: Admissions

Book 14: Actions

Book 15: Evidence and Administration of an Oath

Book 16: Administration of Justice by the Courts

Islamic Economics and Finance: Research Published by the Center of Research in Islamic Economics

2010-02-09T00:18:00.000-08:00

Islamic Economics and Finance:

Research Published by the Center of Research in Islamic Economics

King Abdul Aziz University

Name of Author	Title	Date of Publication
A.A. Islahi	Muslim Economic Thinking and Institutions in the 10^th H./ 16^th G. Century	2009
A.A. Islahi	A Study on Muslim Economic Thinking in the 11^th AH / 17^th CE Century	2008
M. Obaidullah	Teaching Corporate Finance from an Islamic Perspective	2007
M. Obaidullah	Islamic Financial Services	2005
M.N. Siddiqi	Teaching Islamic Economics	2005
M. Obaidullah	Rating of Islamic Financial Institutions	2005
A.A. Islahi	Zakah: A Bibliography	2005
A.A. Islahi	Contribution of Muslim Scholars to Economic Thought and Analysis (11-905 A.H./632-1500 A.D.)	2005
M.G.I. Bagsiraj	Islamic Financial Institution of India: Progress, Problems and Prospects	2003
A.A. Islahi	Waqf: A Bibliography	2003
Yusuf Al-Qardawi	Fiqh Al-Zakah	2000
S.M. Ghazanfar & A.A. Islahi	Economic Thought of Al-Ghazali (450-505 A.H. / 1058-1111 A.D.)	1997
A.A. Islahi	History of Economic Thought in Islam: A Bibliography	1997
M. Akram Khan	Public Finance in Islam (A Bibliiography of Works in English)	1996
Curriculum Committee IERC	A Proposed Syllabus for a Course in: Public Finance (Public Economics) with Special Reference to Islamic Perspectives	1995
Curriculum Committee IERC	Syllabus for a Course in: Money and Banking from an Islamic Perspectives (Bachelor’s Level)	1995
Curriculum Committee IERC	A Proposed Syllabus for a Course in: The Foundation of Islamic Economics	1995
M.N. Siddiqi & M. Fahim Khan	Teaching Public Finance in Islamic Perspective	1992
S.M. Hasanuzzaman	The Economic Relevance of The Sharia Maxims (al Qawaid al Fiqhiyah)	1992
M. Akram Khan	Bibliography of Studies in English Published During 1940-1990.	1992
M.R. Zaman	Some Administrative Aspects of the Collection and Distribution of Zakah and the Distributive Effects of the Introduction of Zakah into Modern Economics.	1987
Ausaf Ahmed	Income Determination in an Islamic Economy.	1987
CRIE	Guidelines for Key Issues in Islamic Economics	1985
Badal Mukherji	Theory of a Firm in a Zero Interest Rate Economy	1984
M.A. Mannan	Abstracts of researches in Islamic Economics.	1984
A.A. Islahi	Economic Thought of Ibn Al-Qayyim	1984
Najmul Hassan	Social Security System of Islam with Special Reference to Zakah.	1984
Ziauddin, et al	Fiscal Policy and Resource Allocation in Islam	1983
Ziauddin, et al	Money and Banking in Islam	1983
M. Mohsin	Assessment of Corporate Securities in Terms of Islamic Investment Requirements.	1983
M. Ariff (ed.)	Monetary and Fiscal Economics of Islam - A Survey	1982
M.N. Siddiqi	Recent Works on History of Economic Thought in Islam - A Survey	1982
M.A. Mannan	Why is Islamic Economics Important.	1982
M.A. Mannan	Islamic Perspectives on Market Prices and Allocation.	1982
M.A. Mannan	Scarcity, Choice and OpportunityCost: Their Dimensions in Islamic Perspective.	1982
M.A. Chawdhury	Interest Rate and Intertemporal Efficiency in an Islamic Economy: Issue Revisited.	1982
M.N. Siddiqi	Muslim Economic Thinking.	1981
M.A. Mannan	Institutional Settings of Islamic Economic Order.	1981
M. Iqbal and F. Khan	A Survey of Issues and a Programme for Research in Monetary and Fiscal Economics of Islam.	1981
M.M. Metwally	A Behavioural Model of an Islamic Firm - Discussion Paper.	1981
M.N. Siddiqi	Rationale of Islamic Banking.	1980
K. Ahmad (ed.)	Studies in Islamic Economics.	1980
M.N. Siddiqi	Contemporary Literature on Islamic Economics.	1978
K. Ahmad (ed.)	Monetary and Fiscal Economics of Islam - An Outline of Some Major Subjects of Research.	-

Islamic Banking: The Meezan Bank Guide

2010-02-09T00:05:00.000-08:00

The Meezan Bank Guide to Islamic Banking: http://www.meezanbank.com/gib_toc.aspx

Section I	Introduction to Islamic Economic System
	Chapter 1 The Islamic Economic System Chapter 2 Factors of production in Islam Chapter 3 The objectives of the distribution of wealth in Islam
Section II	Riba, Its Prohibition & Classifications
	Chapter 4 Riba in the Qur'an Chapter 5 Riba in Hadith Chapter 6 Riba and its types Chapter 7 Commercial interest and usury Chapter 8 Simple and compound interest
Section III	Islamic Contract
	Chapter 9 Islamic contract Chapter 10 Sale Chapter 11 Valid Sale Chapter 12 Five khiyars
Section IV	Islamic Modes of Financing
	Chapter 13 Musharakah Chapter 14 Mudarabah Chapter 15 Diminishing Musharakah Chapter 16 Murabaha Chapter 17 Salam Chapter 18 Istisna' Chapter 19 Istijrar Chapter 20 Ijarah (Leasing) Chapter 21 Ijarah Wa Iqtina
Section V	Banking in Islam
	Chapter 22 The features of a conventional bank Chapter 23 Mushsharakah in bank deposits
Section VI	Applications of Islamic Financing
	Chapter 24 Project financing Chapter 25 Working capital financing Chapter 26 Import financing Chapter 27 Export f inancing
Section VII	Applications of Islamic Financing
	Chapter 28 Securitization Chapter 29 Islamic Investment funds Chapter 30 The principle of limited liability