absorbing the qarz al’hasan deposits by islamic financial instruments (sukuk)

An Introduction to Islamic Securities (Sukuk)

Islamic securities (Sukuk) are hybrid securities bearing features of stocks and bonds, altogether. Similar to stocks, they indicate a type of partnership and holders of Sukuk will be considered as the owners of underlying asset or project for finance of which, Sukuk have been issued. Theoretically, these holders share any loss and profit resulted from underlying asset. However, these securities...

Islamic Finance: The Impact of the AAOIFI Resolution on Equity-Based Sukuk Structures

The growth of the Islamic financial market in recent years has been remarkable, but this market has faced growing pains in terms of the struggle with Shari'ah-compliance of its products. A major criticism of Islamic financial products has been their resemblance to conventional financial products. This article explores the developments in the Islamic financial market in regard to equity-based su...

Integrating Islamic Finance to Global Financial System: the Role of the Islamic Financial Services Board (IFSB)

A prudential framework is an important element in facilitating the successful integration of Islamic financial services to the global financial system. In recognition of this need, various stakeholders decided to establish the Islamic Financial Services Board (IFSB) to spearhead the development of a uniform set of prudential, supervisory and disclosure standards for the Islamic financial s...

Sukuk Vs Conventional Bonds A study into the performance of Islamic Bonds

“islamic Financial Services Industry: the European Challenges”

What is Islamic Finance? There are at least three characteristics which makes it different from the conventional debt finance. First, it prohibits riba or interest, or in other words a fixed and pre-determined rate of return to be paid on the deposits or to be received from the borrowers. The rate of return is variable and determined by the profit and loss that the bank makes during a given per...

Capability-Based Financial Instruments

Every novel cooperative arrangement of mutually suspicious parties interacting electronically — every smart contract — effectively requires a new cryptographic protocol. However, if every new contract requires new cryptographic protocol design, our dreams of cryptographically enabled electronic commerce would be unreachable. Cryptographic protocol design is too hard and expensive, given our unl...