Islamic Finance: Theory and Practice.

This book reviews the Islamic opposition to interest and assesses the feasibility of a non-interest financial system in light of current economic theory. The Islamic critique of interest is set against a discussion of the methodology of Islamic economics and the opposition to interest within the Judaeo-Christian tradition. The range of Islamic non-interest financial contracts is then detailed along with a review of the performance of Islamic banks to date: a model of the allocation of finance within a non-interest system is then presented. The conclusions outline the advantages and disadvantages of a theoretical non-interest economy, affirm the theoretical case for the prohibition of interest, and draw practical lessons for_x000D_ contemporary Western economies.