Islamic Finance

Islamic Banking was founded on higher objectives based on social justice: namely to develop financial intermediation based on risk-sharing for socially responsible economic activities. From an Islamic worldview money is a sterile asset. Its sole economic purpose is to serve as a medium of exchange. Whilst one can lease a land out on rent, one can’t lease out money on interest. From Aristotle to St. Thomas Aquinas the narrative on interest was unequivocal.

In 2018, participants chose the topic of “Challenging the Shari’ah Compliance of Islamic Finance Products”. As in previous years, the workshop is preceded by the submission of written commentaries on the topic.

The Islamic Legal Studies Program at Harvard Law School has housed a research project named, Islamic Finance Project (IFP) that was quite active and well recognized in its field. The idea behind the workshop was cropped up during discussions with IFP associates about the future of Islamic finance and economics. It was suggested that engaging key scholars in a debate on the role of Islamic finance and Islamic law (Shariah) in the current trajectory of the Islamic finance industry would be an essential; step to support the industry. The whole debate centered around two key stakeholders; i.e.

The emphasis of the workshop was not meant to review contemporary Fintech technology, products and processes, but rather focus on the Shariah related challenges Islamic finance must address to ensure their compliance. Therefore, the main purpose of this workshop was to explore whether to use and apply the Ahkam Fiqhiyya, and/or,

The workshop began with participants claiming that the definitions of sukuk that the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB) have put forward are causing confusion in the markets.  AAOIFI defines