Introduction to Islamic Banking and Finance

Introduction to Islamic Banking and Finance is a succinctguide to the key characteristics of Islamic banking highlightinghow these differ from conventional banking. This detailed bookillustrates how Islamic banking is consistent with the Sharia'a, akey element of which is the prohibition on collecting and payinginterest. This central religious precept appears to rule out mostaspects of modern finance but it does allow money to be used fortrading tangible assets and business, which can then generate aprofit. Brian Kettell's book looks at all aspects of Islamicbanking, including chapters on its creation and evolution throughto detailed discussions of the issues involved in the Sharia'acontracts of Murabaha, Mudaraba, Musharaka, Ijara, Istisna'a, andSalam. Islamic insurance (Takaful) is also covered. Finally thebook takes a look at Sharia'a law and Sharia'a boards, indicatingthe roles and responsibilities that come with membership.
Islamic banks have been operating in places such as Bahrain,Saudi Arabia, Malaysia and Dubai for some time. Conventionalbankers have traditionally viewed the sector as a small, exoticniche but recent years have seen a dramatic surge in popularity. Anumber of Western investment banks have started working with Muslimclerics to create new ranges of financial products designed fordevout Muslims, a large and growing market. Although estimates ofthe size of the Islamic finance industry vary greatly, everyoneagrees that it is expanding rapidly and this is the perfect bookfor anyone looking to understand the industry.