The Islamic financial services industry has developed from the early theoretical writings on interest-free finance in the 1940s–1960s into the growing global establishment of Islamic financial institutions in the 21st century. Today, the Islamic financial services industry has expanded globally with more than 550 Islamic financial institutions and operations in over 75 countries. This textbook, Islamic Financial System: Principles & Operations, represents a comprehensive and useful source for students, practitioners and the general public alike. It represents the commitment of the International Shari’ah Research Academy for Islamic Finance (ISRA) in addressing challenges faced by the Islamic finance industry, particularly in enhancing its talent pool and enriching its academic resources.
Beyond the usage by students, this book discusses various aspects of Islamic finance including current issues that are indispensable to practitioners as well. Some of the topics covered are the Islamic economics and financial system, development of the Islamic financial system, Islamic financial markets, the concept of money and monetary policy, Shari’ah framework for Islamic finance, Shari’ah contracts for Islamic financial instruments, Islamic money market, Islamic debt and equity market, takaful, risk management and hedging instruments, opportunities, issues and challenges, and recent issues of concern which has not been dealt with in most textbooks: regulation, supervision and governance of Islamic financial markets. One unique feature of this book is: it has attracted a scholastic diversity of a number of experts in Islamic finance, from both academia and industry. It is the aspiration of ISRA that this book serves as a beneficial material for all stakeholders in understanding the theory and practice of Islamic finance.