The Experts below are selected from a list of 16833 Experts worldwide ranked by ideXlab platform
Umar Aimhanosi Oseni - One of the best experts on this subject based on the ideXlab platform.
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towards a global hub the legal framework for dispute resolution in malaysia s Islamic Finance industry
International Journal of Law and Management, 2016Co-Authors: Umar Aimhanosi Oseni, Abu Umar Faruq AhmadAbstract:Purpose – The paper aims to examine significant developments in the institutional framework for dispute resolution in the Islamic Finance industry in Malaysia. Malaysia, as part of its efforts to consolidate its enviable Islamic Finance industry, has strengthened its institutional framework for dispute resolution. Design/methodology/approach – Data for this study were collected from both primary and secondary legal sources. Through a conceptual legal analysis, the institutional frameworks of dispute resolution in the Malaysia’s Islamic Finance industry are studied. Findings – The study finds that Malaysia is far ahead of other jurisdictions by a significant margin in spearheading reforms in the emerging global Islamic Finance industry. The dispute resolution framework has been largely affected by the recent reforms. Research limitations/implications – Other jurisdictions may borrow a leaf from Malaysia’s initiative in providing a robust legal framework for dispute management in the Islamic Finance industr...
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craig r nethercott david m eisenberg eds Islamic Finance law and practice
European Journal of Law and Economics, 2013Co-Authors: Umar Aimhanosi OseniAbstract:With the phenomenal growth in Sharī‘ah compliant products across the world, the application of Islamic law in commercial transactions has now transcended the natural borders of the Muslim world. Islamic Finance has continued to grow in an amazing manner with the latest data on Sharī‘ah compliant assets put at $USD 1.3 trillion by the end of 2011. As a consequence of the tremendous growth witnessed in the Islamic Finance industry within the past two decades, scholars have continued to provide the conceptual framework to guide current practices in the industry. Therefore, this book is one of the most detailed analyses of different aspects of Islamic Finance from the legal and regulatory perspectives. More often than not, the legal dynamics of Islamic Finance products have been a neglected field in Islamic Finance. Though scholarship on Islamic Finance has mushroomed within the past decade, there is a subtle neglect of this area of research, which in the final analysis has far-reaching implications on the future of the entire industry. Craig R. Nethercott and David M. Eisenberg, two prominent Islamic Finance legal practitioners, edited this book—a first of its kind on the law and practice of Islamic Finance in the past decade. The work is presented in twelve chapters written by leading scholars in the field who represent a diverse array of Islamic Finance experts, legal practitioners, and scholars from the academia. In order to pre-empt the critical review of the volume, the editors observe in the Preface to the book, “that certain areas of current learning, practice, and debate are either missed entirely or oversimplified” (p. viii). Despite this humble acknowledgement on the part of the editors, the book touches on significant areas, which are often neglected, downplayed, or understated in books, and academic and professional conferences on Islamic Finance. For instance, the chapter on Dispute Resolution and Specialized ADR for Islamic Finance (chapter 12) adds significant value to the book, as it is presented as a preliminary overview of current trends and the enumeration of future directions in such a specialized field in Islamic Finance. More often than not, this indispensable aspect of the continuum of transactions in a typical Islamic Finance contract has been inadvertently left out in related works. Essentially, the idea of emphasising the relevance of law and practice of Islamic Finance is worth acknowledging in an industry that is dominated by Islamic economists who set the tone for the conceptual foundations of the modern practice of Islamic Finance.
Muhammad Hanif - One of the best experts on this subject based on the ideXlab platform.
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economic substance or legal form an evaluation of Islamic Finance practice
International Journal of Islamic and Middle Eastern Finance and Management, 2016Co-Authors: Muhammad HanifAbstract:Purpose Islamic financing is based on the ideology of Islam, proposing a different economic system than capitalism. The essence of Islamic financing lies in trading of goods, provision of services and/or investment under profit and loss sharing. This study aims to examine legal forms and economic substance of the contracts used by the Islamic financial industry. Design/methodology/approach To conclude on the objectives of the study, five most widely used contracts (modes/products), including Murabaha, Ijarah, Diminishing Musharaka, Sukuk and Mudaraba (deposits), were selected to test against the theory of the Islamic financial system. Findings It is found in the process that legally (legal form) contracts/products are in line with theory; however, economic substance is not very different from conventional counter parts. Practical implications Through application of alternative calculation measures/methods and proper training of human resources, Islamic financial institutions can shift economic substance of contracts in line with the theory of Islamic Finance. Originality/value Islamic Finance is an emerging area, and reasonably good amount of literature is available; however, perhaps, this is the only piece of work focusing on calculation methods, contributing in economic substance of contracts, being used in modern Islamic Finance in addition to legal form as per essence of Islamic financial system.
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economic substance or legal form an evaluation of Islamic Finance practice
Social Science Research Network, 2012Co-Authors: Muhammad HanifAbstract:Modern Islamic financing was started in the last quarter of 20th century and got momentum in the first decade of 21st century. Global volume of assets under Islamic financial system, have reached to US$ 2,000/- billion by the end of December 2014 (MIFC-2015). Purpose: Islamic financing is based on ideology of Islam, proposing a different economic system than capitalism. Essence of Islamic financing is either trading of goods, provision of services and/or investment under profit and loss sharing. This study is conducted to examine legal form as well as economic substance of the contracts used by Islamic financial industry.Design/Methodology: In order to conclude on the objectives of the study, five most widely used contracts (modes/products) including Murabaha, Ijarah, Diminishing Musharaka, Sukuk and Mudaraba (deposits), were selected to test against the theory of Islamic financial system.Findings: It is found in the process that legally (legal form) contracts/products are in line with theory; however economic substance is not very different from conventional counter parts.Practical Implications: Through application of alternative calculation measures/methods and proper training of human resources, Islamic financial Institutions can shift economic substance of contracts in line with theory of Islamic Finance.Originality/Value: Islamic Finance is an emerging area and reasonably good amount of literature is available, however perhaps this is the only piece of work focusing on calculation methods, contributing in economic substance of contracts, being used in modern Islamic Finance in addition to legal form as per essence of Islamic financial system.
Raj S Dhankar - One of the best experts on this subject based on the ideXlab platform.
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the flow of Islamic Finance and economic growth an empirical evidence of middle east
Journal of Functional Analysis, 2014Co-Authors: Mosab I Tabash, Raj S DhankarAbstract:Islamic Finance is one of the fastest growing sectors of the global banking industry and has risen to prominence recently through its distinctive characteristics. The emergence of Islamic Finance can be traced back to 1963 in Egypt, while its importance comes to the global financial system only after the global financial crisis occurred in 2008. This paper explores empirically the relationship between the development of Islamic Finance and economic growth in the Middle East. Three of the most important countries for Islamic Finance growth from Middle East, namely Qatar, Bahrain, and United Arab Emirates (UAE), are selected for the study. To document the relationship between development of Islamic Finance and economic growth, annually time-series data of economic growth and Islamic banks’ financing were used. We use Islamic banks’ financing credited to private sector through modes of financing as a proxy for the development of Islamic Finance system and Gross Domestic Product (GDP), as a proxy for economic growth. For the analysis, the unit root test, co-integration test and Granger causality tests were done. Our empirical results generally signify that in the long run Islamic banks’ financing is positive and significantly correlated with economic growth in the select countries which reinforces the idea that a well-functioning banking system promotes economic growth. The results obtained from Granger causality test reveals a causal relationship between Islamic Finance and economic growth in these countries. It is neither Schumpeter’s supply-leading nor Robinson’s demand-following. It appears to be a bi-directional relationship from Islamic banks’ financing to economic growth and vice versa for Bahrain and Qatar. The results obtained from Granger causality test for UAE indicates that a causal relationship happens only in one direction, i.e., from Islamic banks’ financing to economic growth, which supports Schumpeter’s supply-leading theory. Our results also indicate that improvement of the Islamic financial institutions in the Middle East countries will benefit from economic development, and it is important in the long run for the economic welfare, and also for poverty reduction. Furthermore, the results of study are quite significant as it is one of the pioneering studies of Islamic Finance.
Zamir Iqbal - One of the best experts on this subject based on the ideXlab platform.
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the role of Islamic Finance in enhancing financial inclusion in organization of Islamic cooperation oic countries
2011Co-Authors: Mahmoud Mohieldin, Zamir Iqbal, Ahmed RostomAbstract:The core principles of Islam lay great emphasis on social justice, inclusion, and sharing of resources between the haves and the have nots. Islamic Finance addresses the issue of “financial inclusion” or “access to Finance” from two directions — one through promoting risk-sharing contracts that provide a viable alternative to conventional debt-based financing, and the other through specific instruments of redistribution of the wealth among the society. Use of risk-sharing financing instruments can offer Shar ahcompliant microFinance, financing for small and medium enterprises, and micro-insurance to enhance access to Finance. And redistributive instruments such as Zak h, adaqat, Waqf, and Qar -al- asan complement risk-sharing instruments to target the poor sector of society to offer a comprehensive approach to eradicating poverty and to build a healthy and vibrant economy. Instruments offered by Islam have strong historical roots and have been applied throughout history in various Muslim communities. 1 Mahmoud Mohieldin serves as World Bank President’s Special Envoy. Zamir Iqbal is Lead Investment Officer with the Treasury of the World Bank. Ahmed Rostom is a Financial Sector Specialist with the World Bank and is also affiliated with The George Washington University in Washington, D.C. and. Xiaochen Fu is pursuing graduate studies at Kennedy Business School at the Harvard University. The views expressed in this paper are entirely those of the authors and do not necessarily represent the views of the World Bank, its Executive Directors, or the countries they represent. An earlier version of the paper was presented at 8 th International Conference on Islamic Economics and Finance in Doha, Qatar, held from December 19-21, 2011.
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the role of Islamic Finance in enhancing financial inclusion in organization of Islamic cooperation oic countries
2011Co-Authors: Mahmoud Mohieldin, Zamir Iqbal, Ahmed RostomAbstract:The core principles of Islam lay great emphasis on social justice, inclusion, and sharing of resources between the haves and the have nots. Islamic Finance addresses the issue of"financial inclusion"or"access to Finance"from two directions -- one through promoting risk-sharing contracts that provide a viable alternative to conventional debt-based financing, and the other through specific instruments of redistribution of the wealth among the society. Use of risk-sharing financing instruments can offer Shariah-compliant microFinance, financing for small and medium enterprises, and micro-insurance to enhance access to Finance. And redistributive instruments such as Zakah, Sadaqat, Waqf, and Qard-al-hassan complement risk-sharing instruments to target the poor sector of society to offer a comprehensive approach to eradicating poverty and to build a healthy and vibrant economy. Instruments offered by Islam have strong historical roots and have been applied throughout history in various Muslim communities. The paper identifies gaps currently existing in Organisation of Islamic Cooperation (OIC) countries on each front, that is, Shariah-compliant micro-Finance and financing for small and medium enterprises and the state of traditional redistributive instruments. The paper concludes that Islam offers a rich set of instruments and unconventional approaches, which, if implemented in true spirit, can lead to reduced poverty and inequality in Muslim countries plagued by massive poverty. Therefore, policy makers in Muslim countries who are serious about enhancing access to Finance or"financial inclusion"should exploit the potential of Islamic instruments to achieve this goal and focus on improving the regulatory and financial infrastructure to promote an enabling environment.
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financial engineering in Islamic Finance
Thunderbird International Business Review, 1999Co-Authors: Zamir IqbalAbstract:The objective of this article is to examine the scope of financial innovation and engineering within an Islamic financial system. The article concludes that, contrary to common belief, Islamic Finance provides the basic building blocks that can be used to construct more complex instruments that will enhance liquidity and offer risk management tools. With the introduction of asset securitization and swap transactions conforming to Islamic principles, the issues of secondary markets and risk management can be addressed. The first section discusses the significance of innovation in Islamic financial markets. The second section discusses the process of introducing new products in the market and their scope. The third section illustrates an Islamic form of asset securitization as an example of financial engineering. The fourth section evaluates the structure of a commodity swap transaction to determine its validity. And finally, the fifth section concludes the discussion. © 1999 John Wiley & Sons, Inc.
Kabir M Hassan - One of the best experts on this subject based on the ideXlab platform.
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Socioeconomic Impact of COVID-19 in MENA region and the Role of Islamic Finance
'Universitas Muhammadiyah Yogyakarta', 2021Co-Authors: Kabir M Hassan, Mustafa Raza Rabbani, Yomna AbdullaAbstract:This paper analyses the socio-economic impact of the noble Corona virus (COVID-19) on ‘Middle East and North Africa’ (MENA) region as well as the role and opportunities of Islamic Finance post COVID-19. The findings show that pandemic has affected the MENA region massively like any other region in the world. Since around 69% of the word’s crude oil supply is from this region alone, this causes it to suffer from dual shocks of COVID-19 pandemic as well as the declining crude prices that is caused by shocks from both ends, negative supply shock and a negative demand shock. The 19 countries in MENA region include from some of the richest countries of the world such as, Qatar, Kuwait, and Saudi Arabia, to some of the most vulnerable, poor and war ridden countries like Yemen, Syria, and Morocco. To mitigate the adverse effects of the pandemic, we suggest some immediate actions that can be taken such as a public fund to support health system, financial support to individuals and SME’s, financial support to corporations in order to prevent job loss and layoff and assurance of liquidity in domestic markets to prevent liquidity crunch. Finally, the paper analyses the role of Islamic Finance in the region in recovery post COVID-19 and show that Islamic Finance can be utilized as an alternative financial system in providing the relief to the COVID-19 affected people and entrepreneurs
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a review of empirical Islamic Finance literature
Social Science Research Network, 2017Co-Authors: Kabir M Hassan, Aliyu SirajoAbstract:This paper reviews empirical studies with particular interest in the Islamic Finance literature and highlights future research directions. The earlier literature of Islamic Finance was built on the Islamic economic foundation of social justice and fairness, which was formed theoretically from the primary sources of Sharia coupled with some analytical frameworks. Subsequent studies emphasized on the empirical investigations without far-reaching analytical and theoretical postulations in the area. Although empirical studies on Islamic banking are plenty, there is a new emerging empirical literature on Islamic Finance focusing on mutual funds, corporate Finance, real estate Finance, Takaful, and the Finance-growth nexus, whereas Islamic accounting studies are mostly qualitative in nature. The literature provides a mixed picture of Islamic financial markets and instruments showing that the Islamic ones perform better most of the time but also performs worse at times compared to their conventional counterparts. This paper discusses relevant issues to Islamic Finance and identifies avenues for future research and policy implications.
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openness culture legal environment and Islamic Finance
Research Papers in Economics, 2017Co-Authors: Kaouthar Gazdar, Rihab Grassa, Kabir M HassanAbstract:Differences in culture and legal origins cannot be ignored when examining the differences in Islamic financial development across countries. Using a sample of 29 Organization of Islamic Conference (OIC) countries over the period of 2005–14, this study assesses in the first step if culture, proxied by differences in religion and language, explains differences in Islamic Finance development across countries. In the second step, we investigate whether different legal origins impact the development of Islamic Finance. Finally, we examine if the importance of cultural factors in determining Islamic Finance development falls as openness to international trade increases. Our results show that the relation between legal environment, culture and Islamic Finance seems strong for the two indicators of Islamic Finance development. We also find that Islamic and Arabic countries have a significantly more developed Islamic banking system. Openness also has a significant and a positive effect on promoting Islamic Finance. Moreover, international trade reduces the influence of culture on Islamic Finance development.
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a comparative literature survey of Islamic Finance and banking
Financial Markets Institutions and Instruments, 2001Co-Authors: Tarek S Zaher, Kabir M HassanAbstract:There has been large-scale growth in Islamic Finance and banking in Muslim countries and around the world during the last twenty years. This growth is influenced by factors including the introduction of broad macroeconomic and structural reforms in financial systems, the liberalization of capital movements, privatization, the global integration of financial markets, and the introduction of innovative and new Islamic products. Islamic Finance is now reaching new levels of sophistication. However, a complete Islamic financial system with its identifiable instruments and markets is still very much at an early stage of evolution. Many problems and challenges relating to Islamic instruments, financial markets, and regulations must be addressed and resolved. In this paper, we provide a comprehensive comparative review of the literature on the Islamic financial system. Specifically, we discuss the basic features of the Islamic Finance and banking. We also introduce Islamic financial instruments in order to compare them to existing Western financial instruments and discuss the legal problems that investors in these instruments may encounter. The paper also gives a preliminary empirical assessment of the performance of Islamic banking and Finance, and highlights the regulations, challenges and problems in the Islamic banking market.
