A comprehensive look at the innovations, applications, and best practices of Islamic finance
Islamic-compliant finance is transacted in every major world financial center, and the need for information on the topic in light of its global reach has grown exponentially. As an expert in this field, author Karen Hunt-Ahmed understands the intricacies of this area of the capital markets. Now, along with the help of a number of experienced contributors, she skillfully addresses Islamic finance from the perspective of practitioners, examining issues in wealth management, contract law, private equity, asset management, and much more.
Engaging and accessible, Contemporary Islamic Finance skillfully explains the practices and innovations of Islamic finance in everything from banking and real estate to private equity, asset management, and many other areas. It is intended to be the go-to resource for both Muslims as well as non-Muslims with an interest in the subject. Divided into three comprehensive parts, it will put you in a better position to understand, and excel at, this important endeavor.
Introduces you to the history, legal structures, and basic financial contracts in the industry
Highlights the various issues facing contemporary Islamic finance practitioners, and details their significance in the contemporary financial and cultural environment
Includes case studies of United States-based transactions and related challenges and successes
Filled with in-depth insights and expert advice, this detailed analysis of Contemporary Islamic Finance will help you gain a firm understanding of how effective this proven approach can be.
Dr. KAREN HUNT-AHMED is a lecturer at DePaul University. She is currently teaching Islamic finance, microfinance, management, and business ethics. Dr. Hunt-Ahmed is also a Faculty Fellow of DePaul's Egan Urban Center as well as the president of the Chicago Islamic Microfinance Project, a not-for-profit economic development organization that provides Shari'ah-compliant microcredit to entrepreneurs in Chicago. Her research interests include culture and identity, financial empowerment, Islamic finance, microfinance, and the socialization of economic behavior. Dr. Hunt-Ahmed has worked in the banking sector in Chicago and in private equity in Dubai, United Arab Emirates. She received her BA and MBA from Washington University in St. Louis and her PhD from the University of Chicago. Dr. Hunt-Ahmed lives in Wilmette, Illinois, and enjoys karate. She lived in Dubai for many years and has traveled extensively in the Middle East, Pakistan, Africa, and Europe.
Acknowledgments xi 1 Introduction: Islamic Finance in the World Economy 1 Karen Hunt-Ahmed PART I The Contemporary Islamic Finance Landscape 2 Contemporary Islamic Economic Thought 19 Mohammad Omar Farooq 3 The Legal Framework of Islamic Finance 39 Cynthia Shawamreh 4 Globalization and Islamic Finance: Flows and Consciousness 63 Karen Hunt-Ahmed 5 Islamic Science and the Critique of Neoclassical Economic Theory 75 Waleed El-Ansary 6 Juristic Disagreement: The Collective Fatw Against Islamic Banking in Pakistan 103 Shoaib A. Ghias 7 Managing Liquidity Risk in Islamic Finance 121 Dr. Muhammad Al-Bashir Muhammad Al-Amine 8 Elements of Islamic Wealth Management 147 Paul Wouters 9 Suk k and the Islamic Capital Markets: An Introduction 165 Michael J. T. McMillen 10 Shari a-Compliant Mutual Funds 189 Monem Salam 11 The Evolution of Shari ah-Compliant Indexes and Why They Outperform Conventional Indexes over the Long Term 195 Tariq Al-Rifai 12 Takaful 203 Farrukh Siddiqui 13 Islamic Human Resources Practices 215 William Marty Martin 14 An Integrated Islamic Poverty Alleviation Model 223 Ali Ashraf and M. Kabir Hassan 15 How Does an Islamic Microfinance Model Play the Key Role in Poverty Alleviation? The European Perspective 245 Sabur Mollah and M. Hamid Uddin PART II Case Studies 16 Islamic Finance in an Almost Postcrisis and Postrevolutionary World: As in Politics, All Islamic Finance Is Local 257 Mark Smyth 17 Stepping Forward, Backward, or Just Standing Still? A Case Study in Shifting Islamic Financial Structures Offshore 267 Umar F. Moghul 18 Islamic Mortgages 283 David Loundy 19 Shari a Quality Rating 293 Nasir Ali Merchant 20 Islamic Mutual Funds Performance in Saudi Arabia 303 Hesham Merdad and M. Kabir Hassan 21 Shari ah-Compliant Real Estate Investment in the United States 323 John L. Opar 22 Risk and Derivatives in Islamic Finance: A Shariah Analysis 331 Dr. Muhammad Al-Bashir Muhammad Al-Amine 23 Islamic Microfinance 353 Blake Goud About the Editor 367 Index 369