Introduction to Islamic Finance and Investment

Allah [SWT] for his great love for mankind has set limits which we are not permitted to transgress, and has set out prohibitions which we are not allowed to violate (haram). The things which have been prohibited are the boundaries or limits set by Allah [SWT]. Acts that are haram are typically prohibited in the the Quran and the Sunnah of the Prophet (SAW). The category of haram is the highest status of prohibition. If something is considered haram, it remains prohibited no matter how good the intention is or how honourable the purpose is. In this book I have discussed Islamic finance and investment free of all such prohibitions. This book consists of thirteen (13) Chapters. Chapter 1 consists of Introduction. Chapter 2 consists of Distinctive Features of Islamic Economics and Islamic Financial Contracts. Chapter 3 consists of Principal Advantages of Islamic Finance Over Conventional Finance and include: Islamic Finance Promotes the Principle of Financial Justice; Islamic Finance Assists in Financial Inclusion; Islamic Finance Accelerates Economic Development; Islamic Finance Encourages Stability in Investments; Islamic Finance Reduces the Impact of Harmful Products and Practices; and Islamic Finance Progress and Challenges. Chapter 4 consists of Prohibitions and Business Ethics in Islamic Economics and Finance and include: Introduction; Prohibition of Interest, The Usury (Al-Riba); Gharar (Uncertainty); Maysir and Qimar (Gambling); Prohibited Products and Industries; Some Form of Contracts Which Involve Expliotation are Forbidden; and Islamic Business Ethics and Norms That Must Be Adhered. Chapter 5 Consists of the Philosophy and Salient Features of Islamic Banking and Finance and include: Introduction; the Philosophy of Islamic Finance; and Salient Features of Islamic Finance. Chapter 6 consists of an Overview of Islamic Law of Contracts and Commerce in Islamic Finance and consists of: Introduction; General Framework of Contracts Under Islamic Law; Requirement for Valid Contract: Essential Elements of a Valid Contract covering: Offeror and Offeree, Offer and Acceptance, and Subject Matter (Mahal al-Aqd); W'adah (Promise) and Associated Matters; and Islamic Contracts Relevant to Financial Activity. Chapter 7 consists of Islamic Financial Framework and includes: Introduction; Mudarabah; Musharakah; Murabaha; Bai Muajjall; Bay Al-Salam; Istisna; Qard Al-Hasan; and Others covering Ijara, Amanah Model, Ju'ala, Wakalah, Salam, Ariyah, Hibah, Waqaf, Rahn, Kafalah, Hawalah, Ibraa', Wadiah, Sukuk (Islamic bonds), Takaful (Islamic insurance), Islamic credit cards, Islamic equity funds, Islamic derivatives, and Microfinance. Chapter 8 consists of Status Of Money In Islamic Finance And Investment and include: Introduction; Time Value Of Money In Islamic Finance; and Monetary Policy Of Islamic Finance. Chapter 9 consists of Role of Institution of Alms Tax (Zakah) and Sadaqah In Islamic Finance and Investments and includes: Alms Tax (Zakah) and Sadaqah (Voluntary Charity): the Best Investment. Chapter 10 consists of Role of Islamic Micro-Finance System in Islamic Finance and Investments and includes: Introduction; Understanding Mico-Finance; Islamization Of Microfinancing To Seek Reward From Allah [SWT]; and Development Of Islamic Micofinance. Chapter 11 Consists of Role of Islamic Banks in Retail and Corporate Financing and includes: Introduction; Principles Of Islamic Banking; and The Liabilities of Islamic Banks. Chapter 12 Consists of Role Of Islamic Insurance In Islamic Finance and includes: Introduction; Development Of Islamic Insurance; and Islamic Insurance Explained. Chapter 13 consists of Summary and Conclusion. The Book is supported with Bibliography.