Mastering Islamic Finance PDF: A Practical Guide to Sharia-compliant Banking, Investment and Insurance

A practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. The Islamic Finance industry is estimated to be worth $1.2 trillion and is growing globally at over 10% per year. __Mastering Islamic Finance__ willgive practitioners an understanding of Islamic finance, from the basic techniques, through to advanced applications. Helping to demystify and clarify the differences with conventional banking, it will enable practitioners to develop Sharia compliant products for customers. According to Sharia law there are strict rules on how financial services and products can be designed; in Islamic Finance money cannot make money and the subject of the finance must be an asset or a verifiable, real trade or business activity. Sharia compliant financial instruments have been devised to enable Muslims to abide by the principles of Islam and still make the most of their money. __Mastering Islamic Finance__ will equip readers with an understanding of Islamic financial instruments so they can sensibly apply them in practice. For each instrument there is a definition of the concept and how it differs from its equivalent in conventional banking. There are also examples and case studies to highlight practical applications. Cover 1 Contents 8 About the author 12 Publisher’s acknowledgements 13 Author’s acknowledgements 14 Part 1: Background 16 Chapter 1: The Islamic finance phenomenon 18 Introduction 20 The Islamic finance phenomenon 20 Why does Islamic finance exist? 22 Why is Islamic finance a sizeable and growing market? 23 Key challenges facing the industry 28 Conclusion 31 Chapter 2: Islam – key beliefs, principles and practices 32 Introduction 34 Belief system 34 Key practices – the five pillars of action 36 Importance of the Qur’an and the Sunnah 37 Interpretation of the sharia 39 The role of scholars and sharia supervisory boards in Islamic finance 41 Conclusion 42 Chapter 3: How Islamic finance differs from conventional banking 44 The Islamic economic model 46 Key Islamic finance principles 50 Conclusion 58 Chapter 4: Valid commercial contracts in Islamic finance 60 Introduction 62 Key conditions for validity of contracts 62 Integrity of contractual arrangements 66 Status and use of promises 67 Conclusion 68 Part 2: Islamic finance in Practice 72 Chapter 5: Key transaction types in Islamic finance 74 Introduction 76 Equity-type: transactions 76 Mudarabah (Partnership – one party contributes capital) 77 Musharakah (Partnership – all parties contribute capital) 79 Asset finance 83 Murabaha 83 Ijarah 88 Istisn’a 96 Salam 99 Other key transaction types 104 Wakala 104 Hawalah 107 Rahn 108 Kafalah 109 Conclusion 110 Chapter 6: Sukuk 112 Introduction 114 Definition 115 Mechanics of a sukuk transaction 116 Types of sukuk 117 Asset-based versus asset-backed sukuk 123 Sukuk and the secondary market 124 A strong future for sukuk 124 Conclusion 126 Chapter 7: Sharia-compliant investments and wealth management 128 Introduction 130 Sharia-compliant investments 130 Zakat by Iqbal Nasim 141 Sharia-compliant estate distribution and Islamic wills by Haroon Rashid 148 Conclusion 159 Chapter 8: Takaful – Islamic insurance 162 Introduction 164 Sharia perspective on conventional insurance 164 Takaful – the Islamic alternative 165 Takaful models 166 Types of takaful policy 170 The future of the takaful industry 173 Conclusion 173 Chapter 9: The future of Islamic finance 176 Introduction 178 Recommendations for success by IFSB and IDB/IRTI 178 Opinion pieces 181 The Christian view of usury by Robert Van de Weyer 182 The future of Islamic finance by Dr Sayd Farook 186 The secret to long-term success: get the direction of travel right by Faizal Karbani 191 Index 196 A practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. The Islamic Finance industry is estimated to be worth $1.2 trillion and is growing globally at over 10% per year. Mastering Islamic Finance will give practitioners an understanding of Islamic finance, from the basic techniques, through to advanced applications. Helping to demystify and clarify the differences with conventional banking, it will enable practitioners to develop Sharia compliant products for customers. According to Sharia law there are strict rules on how financial services and products can be designed; in Islamic Finance money cannot make money and the subject of the finance must be an asset or a verifiable, real trade or business activity. Sharia compliant financial instruments have been devised to enable Muslims to abide by the principles of Islam and still make the most of their money. Mastering Islamic Finance will equip readers with an understanding of Islamic financial instruments so they can sensibly apply them in practice. For each instrument there is a definition of the concept and how it differs from its equivalent in conventional banking. There are also examples and case studies to highlight practical applications. The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you'll gain instant access to this eBook. Time limit The eBooks products do not have an expiry date. You will continue to access your digital ebook products whilst you have your Bookshelf installed. Mastering Islamic Finance Will Give Practitioners An Understanding Of Islamic Finance, From The Basic Techniques, Through To Advanced Applications. Helping To Demystify And Clarify The Differences With Conventional Banking, It Will Enable Practitioners To Develop Sharia Compliant Products For Customers. Faizal Karbani. Includes Index. Includes Bibliographical References And Index.