Category Archives: Articles on Islamic Finance

Intertemporal Consumption in Islamic Economic Framework

Salman Ahmed Shaikh A typical lifecycle pattern of humans shows that the need to consume basic necessities exists throughout the lifetime, while the capacity to earn incomes is present mostly during the working years of life. In childhood and old-age, … Continue reading

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The Potential Opportunities with Fintech for Islamic Banking

Salman Ahmed Shaikh Islamic finance can help in enabling access to financial services for people who want Islamic financial services. The key question is that can Islamic finance also provide access to financial services to the bottom of the pyramid … Continue reading

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Future Sukuk Growth Depends on Overcoming Challenges

Salman Ahmed Shaikh In the last few years, the growth in Sukuk market has been subdued. Sukuk market is mainly led by Malaysia now. It is important to have stable growth in the Middle East for the global Sukuk issuance … Continue reading

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Risk Management Tools in Islamic Banking

Salman Ahmed Shaikh In this article, we discuss the major risks that Islamic banks face in their commercial operations and the tools with which they mitigate these risks. Credit Risk Credit risk is generally defined as the risk that the … Continue reading

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Islam and Institution of Interest Based Lending

Danial Pirani In modern times, the institution of interest is regarded as critical for the stability of an economy. Nearly all the economic and financial institutions are, in one way or the other, connected to the interest based transactions. Interest … Continue reading

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Potential of Islamic Finance to Lead New Financial Architecture

Salman Ahmed Shaikh The financial crisis of 2007-2009 and ongoing sovereign debt crisis in Europe has challenged the conventional wisdom. Massive levels of debt and consumption beyond means and speedy financial innovation with lax regulation has put major economies in … Continue reading

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Economic Merits of Islamic Modes of Financing

Salman Ahmed Shaikh Keeping aside the technical debates and unsettled issues regarding the legitimacy of some of the Islamic banking operations, in this article, we try to highlight if there are any key elements of economic merit in this system … Continue reading

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Future Research Directions in Islamic Economics

Salman Ahmed Shaikh The recent literature on Islamic economics hardly makes use of mathematics even for expositional purposes. Mathematics is a language. It keeps argument and logic straight. Just like growth models could talk of seemingly non-mathematical concepts like public … Continue reading

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Forex Trade and Islamic Viewpoint

Salman Ahmed Shaikh The top most priority of an Islamic investor is to earn Halal income and avoid such sources of earning income and indulging in transactions which are prohibited in Islamic faith. Trading in foreign currencies offers a very … Continue reading

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Corporate Governance: Agency Conflicts and Islamic Economics

Salman Ahmed Shaikh Agency conflict arises when the various parties have different incentives or objectives in a mutual relationship. Two main agency conflicts which arise in commercial context are: Between shareholders and managers Between shareholders and creditors In the first … Continue reading

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