World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data
Islamic Economics and Finance
Rodney Wilson
World Economics, March 2008

This article provides an introduction to key concepts and methods involved in an Islamic approach to business, investment, risk taking and insurance. The prohibition of riba (interest or usury) profoundly influences the way business transactions and investments are made and financial contracts must comply with Islamic law or shariah. Underlying all economic and financial transactions from an Islamic perspective is a moral dimension, with the authoritative source of guidance being the Holy Quran, the revealed word of Allah, and the Hadith, the sayings and practices of the Prophet Muhammad and his companions, referred to as the Sunnah. Notably there is a concern about the justice of outcomes for individuals. A valuable contribution of the Islamic finance industry-with over one trillion dollars’ worth of assets designated as shariah compliant-is the issues it raises about morality and social accountability in financial dealings and the challenge it poses to conventional assumptions.
Download paper

Related thinking:
    Data on Singapore’s Sovereign Wealth Fund is Flawed
Christopher Balding
World Economics, September 2015
    Taking Stock of Microfinance
Antara Haldar & Joseph Stiglitz
World Economics, June 2015
    Quicksilver Markets
Theodore Berg
World Economics, June 2015




© Copyright World Economics Ltd. 2017