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Islamic Finance: Ethics, Concepts, Practice

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Islamic economic thought and finance are rooted in Islamic ethics, but their ideals and means are not exclusive to Islam. The principles of Islamic finance emphasize market-based risk sharing of financing that promotes asset and enterprise, deploys finance in the service of the real economy, and facilitates redistribution of wealth and opportunity. Modern Islamic financial practices, however, promote legal forms over economic substance, creating an expectations gap between theory and practice. In the wake of the global financial crisis of 2007–2008, the ideas underlying Islamic finance appeal to people who are concerned with the broad impact of finance on society.

About the Author(s)

Adeel Malik
Adeel Malik PhD

Adeel Malik is Globe Fellow in the Economies of Muslim Societies at the Oxford Centre for Islamic Studies, an associate professor in development economics at the University of Oxford’s Department of International Development, and a senior research fellow at the Lebanese Centre for Policy Studies. He is an empirical economist with a multi-disciplinary orientation and is trying to develop a broader research lens to study Middle Eastern political economy. Professor Malik’s research articles have appeared in the Journal of Development Economics, Oxford Economic Papers, World Development, the Review of International Political Economy, and Modern Asian Studies. His most recent contribution to the field is a co-edited volume titled Crony Capitalism in the Middle East: Business and Politics from Liberalization to the Arab Spring. Professor Malik’s research has been featured on CNN and in the Financial Times, the New York Times, Project Syndicate, and Foreign Affairs. He received his doctorate in economics from Oxford University as a Rhodes Scholar.

Usman Hayat
Usman Hayat CFA

Usman Hayat writes about sustainable, responsible, and impact investing and Islamic finance. He is the lead author of "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals", and the literature review, "Islamic Finance: Ethics, Concepts, Practice." He is interested in online learning and has directed three e-courses for CFA Institute: "ESG-100", "Islamic Finance Quiz", and "Residual Income Equity Valuation." The other topics he writes about are macro-economics and behavioral finance. Previously, he was a content director at CFA Institute. He has experience of working in securities regulation and as an independent consultant. His qualifications include the CFA Charter, the FRM designation, an MBA, and an MA in Development Economics. His personal interests are reading and hiking.