Islamic Finance For Dummies

The global Islamic finance market is now worth about $700 billion worldwide. Islamic Finance For Dummies helps experienced investors and new entrants into Islamic finance quickly get up to speed on this growing financial sector.

Here, you'll find clear and easy-to-understand information on how you can incorporate Islamic finance products into your investment portfolio. You'll quickly and easily: become acquainted with the theory, practice, and limitations of Islamic banking; understand how to develop products for the Islamic financial industry; grasp the objectives and sources of Islamic law and the basic guidelines for business contacts; learn about Islamic fund management and insurance; and much more.

• Coverage of the role Islamic finance can play in the development of the financial system and of economies
• Addresses the risks and rewards in Islamic banking
• The future prospects and opportunities of the Islamic finance industry

With the help of Islamic Finance For Dummies, you'll discover the fast and easy way to tap into the booming Islamic finance arena.

Introduction 1

Part I: The Basics of Islamic Finance 9

Chapter 1: Easing into Islamic Finance 11

Chapter 2: Getting to Know Islam and the Role of Sharia 27

Chapter 3: The History of Islamic Finance 43

Chapter 4: Touring the Islamic Finance Industry 55

Part II: Introducing Islamic Commercial Law 73

Chapter 5: Adhering to Islamic Commercial Ethics 75

Chapter 6: Focusing on Contracts 87

Part III: Eyeing Islamic Banking Operations 99

Chapter 7: Contrasting Conventional and Islamic Commercial Banking 101

Chapter 8: Charting the Relationship between Conventional and Islamic Banks 117

Chapter 9: Tracing the Sources and Uses of Funds in Islamic Banks 129

Chapter 10: Familiarizing Yourself with Islamic Financial Instruments 145

Part IV: Islamic Investment Markets: Equity and Bonds 163

Chapter 11: Introducing the Islamic Capital Market 165

Chapter 12: Managing Assets in Islamic Investments 187

Chapter 13: Investing in Islamic Bonds: Sukuk 207

Part V: Reporting, Corporate Governance, and Supervision 229

Chapter 14: Issuing Financial Statements 231

Chapter 15: Considering Corporate Governance 245

Chapter 16: Supervising Operations: The Sharia Board 261

Chapter 17: Managing Risk in Islamic Financial Institutions 275

Part VI: Islamic Insurance: Takaful 291

Chapter 18: Takaful: Exploring the Fundamentals of Islamic Insurance 293

Chapter 19: Takaful and Retakaful Products, Structures, and Governance 305

Part VII: The Part of Tens 323

Chapter 20: Ten Reasons the West Should Pay Attention to Islamic Finance 325

Chapter 21: Ten Economic Benefits of Following Islamic Principles 331

Appendix: Glossary 339

Index 349

Faleel Jamaldeen, DBA, is the founder and editor of the Islamic Finance Expert website (ifinanceexpert.wordpress.com). He is an Assistant Professor at Effat University, Jeddah, Saudi Arabia, where he teaches courses in conventional finance, Islamic finance, and accounting.

Learn to:

• Compare and contrast this financial sector to the Western model
• See how concepts of social justice apply to Islamic financial products
• Grasp Islamic fund management and insurance

A detailed look at the fast-growing Islamic banking and finance sector

Here, you'll find clear and easy-to-understand information on how the Islamic finance industry works. You'll quickly and easily: become acquainted with the theory, practice, and limitations of Islamic banking; understand how Islamic financial firms develop products; grasp the objectives and sources of Islamic law and the basic guidelines for business contracts; learn about Islamic fund management, sukuk, and insurance; and much more.

• Islamic finance 101 — get a crash course on the fundamentals and key principles of the Islamic finance industry
• Get to know sharia — discover how Islamic law, known as "sharia," influences Islamic business practices and commercial contracts
• Eye up the operations — find out how an Islamic commercial bank's function, structure, supervision, and products differ from those of a conventional bank
• Filter funds by Islamic criteria — grasp the fairly recent development of Islamic capital markets that feature sharia-compliant equity products (and the screening process that ensures assets are compliant)
• Consider corporate governance — get the 4-1-1 on the governance typically found at Islamic financial institutions and how it compares to a conventional firm

Open the book and find:

• The concepts and principles of Islamic finance
• What you need to know about Islam and the role of sharia
• Islamic ethics in the finance industry
• The relationship between conventional and Islamic banks
• Financial products available from Islamic banks and other firms
• Managing risk in Islamic financial institutions
• Plain-English guidance on Islamic insurance