New frontiers of Islamic investments

This article studies the role of Islamic financial Institutions historically and in the emerging scenario - the changes that have taken place and the need to look to the future with confidence. It describes the various Islamic financial products, their working and also the future area for consideration. Traditionally, IFIs went into murabaha, musharaka and ijara wa-iqtina financing products and later on Islamic syndication also come into being. Their sphere of transactions have spread to most parts of the world, with particular emphasis on Middle East and South East Asia. IFIs have avoided major banking crises in their operations due to the Islamic financial system. As they have become more experienced, they have ventured into new areas and are using modern techniques to manage assets. A stringent investment criterion based on the Islamic shari`a and investment advantages and risks governs this investment. IFIs are also working with conventional bankers for mutual benefit. Islamic s