Balancing Religion and Finance. Did Islamic Finance overcome possible difficulties that the Islamic law posed on conventional finance?

Inhaltsverzeichnis (Table of Contents)

• Introduction
• What were the exact investment problems of conventional finance?
• Financial operators before Islamic Finance (supply side)
• The Islamic financial markets between 1850 and 1970 (roughly): structure and size
• The role of the Shari'ah: prescription and reality in conventional finance
• The consumers' preferences before Islamic Finance (demand side)
• Defining the consumers of conventional finance and their difficulties with conventional finance
• Which financing methods were common?
• Pre-conclusion: What did the restraining impact of the Shari'ah and the consumers' religious mentalities on conventional finance exactly look like?
• Did Islamic Finance provide solutions to the hitherto carved out problems?
• What is Islamic Finance?
• The concept of Shari'ah-compliance
• What is the \"Islamic world\" - or: which countries are important to survey?
• Islamic banking and Investment
• Takaful or Islamic insurance
• The market situation with Islamic Finance
• Is Islamic Finance working on the markets? (supply side)
• How 'big' is Islamic Finance? Structure and size of the markets
• Is Islamic Finance working? The comparative efficiency of conventional and Islamic Finance
• Is Islamic Finance really Shari'ah-compliant? The disputes around Islamic Finance
• Who is interested? The demand for Islamic Finance

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This work examines the emergence and development of Islamic Finance in the context of the challenges that conventional finance faced in the Islamic world. It investigates whether Islamic Finance effectively addressed these challenges by offering a financial inclusion model that adheres to Islamic law (Shari'ah).

• The difficulties that conventional finance encountered in Islamic markets before the 1970s
• The role of Islamic law (Shari'ah) in shaping both the supply and demand sides of the financial market in the Islamic world
• The key features of Islamic banking, Islamic investment, and Islamic insurance
• The structure, size, and efficiency of Islamic financial markets in comparison to conventional markets
• The acceptance and preference for Islamic Finance among both Muslim and non-Muslim consumers

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter provides an overview of the rise of Islamic Finance as an alternative to conventional financial products in the Islamic world. It highlights the growth of the industry and the various reasons for its adoption and challenges faced in different countries.
• What were the exact investment problems of conventional finance?: This chapter delves into the specific problems faced by conventional finance in Islamic markets before the emergence of Islamic Finance. It examines the restrictions imposed by Islamic law on the supply side (financial operators) and the demand side (consumers' preferences). This includes a detailed analysis of the role of Shari'ah and the influence of religious mentalities on conventional financing methods.
• Did Islamic Finance provide solutions to the hitherto carved out problems?: This chapter explores the fundamental principles of Islamic Finance, defining its concept of Shari'ah-compliance and analyzing the “Islamic world” in terms of relevant countries. It provides an overview of Islamic banking and investment, as well as Takaful or Islamic insurance. This chapter also examines the market situation of Islamic Finance, including its structure, size, and efficiency. It discusses the debate on the true Shari'ah-compliance of Islamic Finance and analyzes the demand for Islamic Finance products.

Schlüsselwörter (Keywords)

This work focuses on the relationship between Islamic law (Shari'ah), conventional and Islamic finance, and financial inclusion in the Islamic world. Key themes include the prohibition of interest (riba), the emergence and growth of Islamic financial institutions, the structure and size of Islamic financial markets, the efficiency of Islamic financial instruments, and the demand for Shari'ah-compliant financial products.