Islamic Finance

Islamic and conventional securities markets have two main differences: the Islamic market can have only equity-based and profit-and-loss sharing instruments; and these instruments cannot have a guaranteed and positive rate of return. An Islamic securities market would feature a better primary market, while in the Islamic secondary market open-ended and medium- and long-term instruments would be relatively more liquid than short-term instruments.

The purpose of this paper is to study the financial product innovativeness of Islamic financial institutions.

Corporates and public sector entities have caused a surge in Islamic capital market securities. The concept of asset-backing is inherent to Islamic finance, and can play a role in structuring financial/credit transactions which follow the precepts of Shariah. Development of Islamic securitization depends on economic, regulatory, and infrastructural conditions. As conventional securitization is not present in Islamic countries, Islamic securitization presents an untapped market for structural finance.

After the collapse of the securities market and the ensuing market turbulence, cast serious doubts on this economic proposition of unbundling, transforming, and re-distributing credit risk via structured finance instruments. This article reviews conventional securities and makes a case for Islamic securities.

Islamic securitization based on the different structures of

This policy paper reviews the key developments in the sukuk market and informs a debate about challenges and opportunities going forward. The paper presents a qualitative analysis of economic, regulatory and legal issues that warrant consideration.

This article surveys the unique structural features of the sukuk market and assesses the potential of conflicts of interest that became apparent in the U.S. subprime mortgage crisis to contaminate the integrity of the securitization process if conducted in compliance with Shari’ah principles. This examination also considers recent regulatory changes to the definition of

This article describes investment funds used to make investments in the United States, lease (ijara) investment structures used for real estate investments in different jurisdictions (including the early development of those structures), and the equity investment paradigm (including applicable tests) for making Shari`ah-compliant equity investments as set forth in the leading