Harvard Law School

The objectives of the workshop were: (i) reviewing the understanding of Islamic financial intermediation and narrowing down what is meant by its real value, (ii) testing this understanding of Islamic financial intermediation and its real value against the world’s recent financial shortcomings and Islamic economic thinking about justice, equality, and wealth creation, (iii) discussing and applying Islamic financial intermediation with respect to each of: macro, institutional and consumer levels, (iv) discussing what immediate economic, legal, and regulatory reforms are needed to reposition t

The Islamic Finance Project (IFP) of the Islamic Legal Studies Program (ILSP) of Harvard Law School, along with the London School of Economics and Political Science (LSE), co-hosted the fifth annual workshop on Islamic finance on 24 February 2011 at the LSE campus in London. This year, participants chose “Reappraising the Islamic Financial Sector” as the workshop topic. A diverse group of twenty-five individuals attended the workshop, including distinguished shari’a scholars, Islamic economists, academicians, bankers, lawyers and portfolio managers.

The Islamic Finance Project (IFP), under the auspices of the Islamic Legal Studies Program (ILSP), and the London School of Economics and Political Science (LSE), jointly hosted their fourth annual daylong workshop on the 25th of February 2010 at the LSE campus in London. Leading Islamic ethico-legal scholars (more commonly known as Shari‘a scholars), Islamic economists, and Islamic finance professionals came together to address a pressing topic in the field of Islamic finance: ethics and governance.

The workshop was attended by a group of influential Islamic legal scholars, academicians, economists, bankers and industry practitioners, who were welcomed by the Directors of IFP and LSE, Dr. Nazim Ali and Sir Howard Davies, respectively. The financial crisis, which was the backdrop of the discussions, and the need to revisit risk management practices were underscored in the opening addresses. The crisis, at its core, demonstrates the dangers of “group think” and over-optimism in clouding corporate decision-making and risk reigning.

The Islamic Finance Project (IFP) organized a panel discussion at Harvard Law School on March 16, 2009 in an effort to determine the relevance and merits of Islamic finance principles, in light of current global financial crisis. Given the relative insulation of Islamic financial institutions (IFI’s) from the brunt of the crisis, IFI’s may provide insights into the development of a more stable and morally-sensitive financial framework.

A workshop entitled “Microfinance: Toward a Sustainable Islamic Finance Model” was held on April 18, 2008, at Harvard Law School before the Eighth Harvard University Forum on Islamic Finance, entitled “Innovation and Authenticity.” Despite the fact that Islamic finance is inherently social justice–oriented, Islamic financial institutions have not yet made significant forays into the area of microfinance.

Tawarruq is a debt instrument that many shari‘a scholars have approved and that the Islamic finance industry has since used extensively. Yet, as its popularity has increased, so has criticism of it.

On Tuesday, August 7, 2007 the Islamic Finance Project (IFP) sponsored a short course by Shaykh Nizam Yaquby (Niām Muammad āli Ya`qūbī) on Islamic financial law. The topic of the short course—which took place 9am-2pm in International Lewis Center, Seminar Room 301 at the Harvard Law School—was synthetic transactions (Arabic al-jam’ bayna l-‘uqūd, “combination of contracts”). Issues surrounding the legality of synthesizing financial transactions have been debated by

Islamic Finance (IF), by any standard, is a burgeoning industry. As with any industry, such fast progress demands a critical look. Particular to IF is the complex and integral relationship that Islamic law has with the field. The nature of shari‘a advisement has recently been brought into question, and there have particularly been questions about the role of Islamic economists vis-à-vis shari‘a scholars.

On Saturday March 19, 2005, the Islamic Finance Project of the Islamic Legal Studies Program hosted an all-day interactive workshop entitled “The Supervision and Regulation of Islamic Financial Institutions in the United States.” The workshop was one of the first of its kind to allow key industry players among financial institutions and representatives from many of the relevant regulatory bodies to directly address their respective concerns regarding the establishment of Islamic financial product markets in the United States.