This book, Introduction to Islamic Banking and Finance: An Economic
Analysis, covers the basic principles of Islamic economics and finance.
It discusses both the theory of Islamic economics and finance as well as
the applications in the design of instruments of finance as well as
Islamic financial institutions. The book enables its readers to gain an
understanding of the structures and operations of Islamic banking,
Islamic capital market investments, risk management, and taxation for
Islamic banking contracts.
The book sets forth the following objectives:
An overview of the principles of Islamic economics and understand their
contrast with mainstream economics.
An overview of basic rules of commercial law in Islamic jurisprudence.
An overview of basic principles, structures and operations of Islamic
banking both in the liability side and asset side operations.
An understanding of Islamic capital market instruments and investment
management including some unique activities peculiar to Islamic
investments, such as stock screening and income purification.
An illustration of different Takaful structures, which are applied for
risk management by individuals and corporates.