Islamic Law and Finance: Religion, Risk, and Return

The book is comprised of three sections dealing respectively with Islamic law, the practice of Islamic banking and finance, and a discussion of case studies. Part One is authored by Vogel and addresses the Shari'ah rulings pertinent to financial transactions. The Islamic law of contracts is discussed, as is the legal framework laid out in the Shari'ah for financial institutions and financing methods. Part Two, authored by Hayes, is a descriptive analysis of Islamic banking and finance. Hayes introduces financial instruments and illustrates them with hypothetical examples. He continues with a discussion of how capital is valued and rewarded within the interest-free framework. The part's final chapter addresses derivative instruments available in the Islamic system, with a comparative look at similar Western instruments. Part Three takes up the task of proposing possible innovations in the practice of Islamic finance. The envisioned arrangements utilize the Murabaha, Salam, Ijara, etc.