The Sixth Harvard University Forum on Islamic Finance was held from May 8-9 2004. This book is a compilation of selected writings that were originally presented at this forum. It is divided into four broad sections, with an introduction by Clement M. Henry, Professor of Government and Middle Easter Studies at the University of Texas (Austin). The first section is an introduction to the challenges of regulation within Islamic finance, and deals with moral hazard in Islamic finance. Section 2 focuses on newer instruments of Islamic Finance, with three articles on developing trends within the field in different parts of the globe. Section 3 focuses debate on certain ethical issues confronting Islamic finance today, including a paper on the flaws inherent in a fatwa-based regulatory system. Finally, Section 4 details the challenges faced by Islamic Finance. The book includes a guide to the contributors, as well as a glossary of terms at the end.
Part I – Introducing the Challenges of Regulation
Corporate Governance and the Islamic Moral Hazard / Ibrahim Warde
Part II – Forging New Financial Instruments
Recent Trends and Innovations in Islamic Debt Securities: Prospects for Islamic Profit and Loss Sharing Securities / Mohamed Rafe Md. Haneef
Islamic Financing Transactions in European Courts / Kilian Bälz
Structuring a Securitized Shari`a-Compliant Real Estate Acquisition Financing:
A South Korean Case Study / Michael J. T. McMillen
Part III – Debating the Ethical Issues
Social Dynamics of the Debate on Default in Payment and Sale of Debt / M. Nejatullah Siddiqi
Limits and Dangers of Shari`a Arbitrage / Mahmoud A. El-Gamal
Fatwas and the Fate of Islamic Finance: A Critique of the Practice of Fatwa in Contemporary Islamic Financial Markets / Walid Hegaz
Part IV – Meeting the Challenges
The Impact of Basel II on the Future of Islamic Banking / Mansoor Shakil
Islamic Banking and the Politics of International Financial Harmonization / Kristin Smith
