Islamic economics


Growth; Development; Planning; Fluctuations



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100 Growth; Development; Planning; Fluctuations

110 Economic Growth, Development, Planning Theory and Policy in Islam

111 Concept, objectives and motives of economic growth in Islam


111:1 AHMAD, AUSAF, Economic Development in Islamic Perspective Revisited, 1998, 26 pp. Unpublished. Presented to the First International Conference on Islamic Economic Development Management organized by Universiti Sains Malaysia during pp. 8-10 December 1998.

Takes a critical view of the existing literature and points out that the earlier approach neglects certain historical characteristics of development process. Suggests that there is no inherent conflict between the Islamic values and the values required for economic growth and development.

For economists. Based on contemporary literature. Documented.

111:2 DIN, SEIF I.T., "Conventional Growth Policy and the Forgotten Potential Resources: A Case for the Ethical Economic Resource," Journal of King Abdulaziz University: Islamic Economics, Jeddah, (9), 1997, pp. 3-27.

Development of man's ethical economic resource along religious lines and brotherly caring behavior among individuals adds a utility function norm which contributes to the creation of a growth-devoted economy.

Mathematical. For economists. Based on contemporary literature. Documented.

111:3 KHAN, SHUJAAT A., "Two Pathways to Development: Capitalist vs. Islamic Approach", Hamdard Islamicus, Karachi, (XXI: 2), April-June 1998, pp. 7-16.

Examines capitalist and Islamic approaches to development in historical perspective. Each approach is grounded in its respective worldview. The capitalist approach is materialistic. The Muslim countries have adopted the capitalist approach with similar consequences as the Western countries have faced. The paper does not construct a development model nor does it give any analytical framework. However, it delineates the two approaches. In the final analysis, it is not the search for technical solutions that is of primary importance. It is the political will that is of importance. The Muslim countries should demonstrate the will to adopt the Islamic approach and benefit from it.

For general readers. Based on contemporary literature. Documented.

111:4 SADEQ, A. H. M., "Entrepreneurship Development and Training: An Islamic Perspective", Hamdard Islamicus, Karachi, (XX:4), Oct-Dec 1997, pp. 37-44.

Argues that the Islamic economic system encourages entrepreneurship. But the present day Muslim states lag far behind the Islamic ideal. They should invest in teaching entrepreneurship to their people.

For Muslim economists. Based on contemporary literature. Documented.

111:5 TAHIR, SAYYID, "Islamic Perspectives on Economic Development", The Pakistan Development Review, Islamabad, (34;4), Winter 1995, pp. 845-856.

Section one presents existing views of the conventional and Islamic economists about economic development. Re-states the Islamic concept of development in section two. Section three defines the role of government in an Islamic economy. Derives policy implications in section four.

For economists. Based on primary sources. Documented.

112 Critique of the Western growth theory and specific models


112:1 DHAOUADI, MAHMOUD, "Capitalism's Impending Dangers for Global Humane Development", American Journal of Islamic Social Sciences, Herndon, VA. (17:1), Spring 2000, pp 39-64.

Suggests that development models influenced by capitalism overlook non-material dimensions of development and underdevelopment. Social sciences shaped by capitalist concerns do not examine the negative consequences of colonization on underdeveloped societies. The problem is not just ideological; it is also epistemological. Positive social science is also unable to comprehend the most important consequence of colonization other under-development: under-development of the cultural symbols, psychology and language of colonized societies. The author advances a model that will help include analysis of cultural-symbolic under-development in the study of development and under-development of societies.

Sociological. Based on contemporary literature. Documented.

113 Planning in Islamic framework


113:1 OMAR, FUAD, al-, Islamic Banking: Theory, Practice and Challenges, Karachi: Oxford University Press, 1996, 137 pp.

Gives an overview of Islamic banking. Discusses case histories of al-Baraka International Bank Ltd, Jordan Islamic Bank for Finance and Investment, Special Finance Houses of Turkey, Bank Islam Malaysia, Islamic Development Bank, Jeddah and Islamic banking in Pakistan. Discusses the question of derivatives and options in the framework of Islamic banking and various challenges faced by the Islamic banks.


For bankers and economists. Based on primary and contemporary sources. Documented. Contains a glossary of terms as well

116 Alleviation of poverty in Islamic framework


116:1 SADEQ, A. H. M., "Poverty Eradication: An Islamic Perspective", Thoughts on Economics, Dhaka, (6:3), Jul-Sep 1996, pp. 7-26.

Gives a framework for measuring poverty. Describes the Islamic framework for fighting poverty.

For economists and general readers. Based on primary sources. Documented.

116:2 SIRAGELDIN, ISMAIL, "Elimination of Poverty: Challenges and Islamic Strategies", Islamic Economic Studies, Jeddah, (8:1), Oct 2000, pp1-16.

Focuses on basic tenets of Islamic ethical system. Suggests that the policies to eliminate poverty should not lead to greater dependency or amoral activities. Policies based on transfers that do not lift the poor from dependency status should not be adopted except in cases where such shift is not feasible. Concludes that Islamic ethics support a poverty-alleviation strategy based on the principle of promoting economic growth with productive equity.

For economists. Based on contemporary literature. Documented.


120 Economic Development Studies

121 Economic development studies of Muslim countries


121:1 ARIFF, MOHAMED (ed.), The Muslim Private Sector in South East Asia, Singapore: Institute of Southeast Asian Studies, 1991, 257 pp. Compilation of ten papers presented to a workshop held in Singapore on 26-27 September 1988 organized by the Institute of Southeast Asian Studies, Singapore.

Contains one theme paper by Monzer Kahf titled, "The role and importance of private sector in Islamic perspective." Rest of the book contains eight case studies from Philippines, Singapore, Thailand, Malaysia, and Indonesia. The last chapter is a paper by the editor that sums up the whole debate. The focus of the book is to highlight the condition of private Muslim enterprises in the South East Asia.

Based on field research and primary sources. Documented.

121:2 MIKAILU, AMINU S., "Islamic Political Economy and Military Governance: The Nigerian Experience", Hamdard Islamicus, Karachi, (XX:4), Oct-Dec 1997, pp. 25-36.

Nigeria inherited political economy based upon secular perspectives of capitalism. The military's performance in Nigeria in the secular framework was not enviable. Recommends that the Government should facilitate emergence of Islamic political economy in Muslim majority countries. The individuals and leaders should comply with the ethical values of Islam. The leaders should encourage the good and prohibit the evil. They should not rule by coercion. Instead they should adopt consultation.

For economists. Based on contemporary literature. Documented.


122 Evaluation of development experience from Islamic perspective


122:1 AHMAD, AUSAF, "Economic Development in Islamic Perspective Revisited, Review of Islamic Economics, Leicester, (9), 2000, pp.83.

Economic development has been the focus of many studies in Islamic economics. While these studies have rightly brought out the holistic nature of the concept of development in Islamic perspective, they also suggest a change in the present strategies of development. Takes a critical look at the literature. Points out shortcomings in the approach. Suggests integration of Islamic values in the theory of economic growth. The reasons for dismal performance of Muslim countries must be sought elsewhere. Instead of advocating an Islamic strategy of development, integration of Islamic institutions into a development strategy is pleaded.

For economists. based on contemporary literature. Documented.

122:2 BASHIR, Abdel HAMID, "Money and Growth in Islamic Economies: Theory and Evidence" in Ehsan Ahmed (ed.), Role of Private and Public Sectors in Economic Development in an Islamic Perspective, Herndon, VA: International Institute of Islamic Thought, 1996, pp.147-166

Based on empirical data of 30 member countries of OIC for 1960-1985 and a mathematical model, argues that government policies that favor inflation and tax revenues tend to increase demand for money by lowering the profit-sharing ratio. Such policies discourage investment and eventually reduce growth. Empirical data testifies the hypothesis.

For economists. Based on published data and contemporary literature. Documented.

122:3 HAMID, A. F .ABDUL, Refuting Weber: A Sufi-Revivalist Experience of Economic Development in Malaysia Considered, 1998, 24 pp. Unpublished. Presented to the First International Conference on Islamic Economic Development Management organized by University Sains Malaysia during 8-10 December 1998.

Challenges implications of the sociological analysis of religions developed by Max Weber. Seeks to address lack of contemporary evidence by citing the development experience of Malaysia-based Islamic movement, Dar-al-Arqam. Argues that the movement's model of a self-sufficient Islamic society shows that Islam may be helpful in the processes of modernization and development.

For economists. Based on contemporary literature. Documented.

122:4 KHAN, MUHAMMAD AKRAM, Managing Islamic Economic Development in Pakistan: The Case of Zakah and Interest-free Banking in Pakistan, 1998, 27 pp. Unpublished. Presented to the First International Conference on Islamic Economic Development Management organized by Univeristi Sains Malaysia during 8-10 December 1998.

Evaluates the implementation of zakah and interest-free banking in Pakistan. Concludes that both the programs have been quite unsuccessful. Gives suggestions to remedy the situation and to proceed further in the right direction.

For economists and policy makers. Based on published sources of the government of Pakistan. Documented.

122:5 MAHDI, SYED IQBAL, "The Role of Public and Private Sectors in Islamization of the Economy of Iran", in Ehsan Ahmed (ed.), Role of Private and Public Sectors in Economic Development in an Islamic Perspective, Herndon, VA: International Institute of Islamic Thought, 1996, pp.135-146

Finds that Iran's strategy of heavy reliance on central planning and the public sector failed to achieve the goal of Islamization of its economy. There was need for a balance between growth of private sector and the public sector. Also emphasizes the need for imposing zakah and abolishing interest from the economy.

For economists. Based on contemporary literature. Documented.

122:6 SUBAIR, KOLA, " Economic Revival and Management in Nigeria: An Islamic Economic Model", Hamdard Islamicus, Karachi, (XXIV:1), Jan 01, pp.73-83.

Capitalism and socialism have failed to provide precise solutions to the Nigerian economic predicaments. This inevitably necessitates call for the third order option: Islamic economic system. The Islamic system emphasizes justice among other things. The Islamic model promises to solve the economic problems of Nigeria.

For general readers. Based on primary sources. Documented.


123 Poverty in the Muslim states


123:1 HUSSAIN, MUHAMMAD, "An Analysis of Pakistan's Poverty Problem from an Islamic Perspective", The Pakistan Development Review, Islamabad, (34:4), Winter 1995, pp. 857-864.

Uses the nisab of zakah as poverty line and analyses the incidence of poverty. Amazingly, the analysis shows that the poverty is decreasing in Pakistan.

For economists. Based on analysis of published statistical data. Documented.

123:2 KURAN, TIMUR, "Islam and Under-development: An Old Puzzle Revisited", Journal of Institutional and Theoretical Economics, Tubingen, (153:1), March 1997, pp. 41-71.

Poses the question why the Muslim countries have been underdeveloped for centuries now? Examines and criticizes various explanations. Argues the real cause is inhospitable environment to innovative thinking and ideas. People with innovative ideas, for fear of reprisals, do not make their ideas public. The public discourse, therefore keeps on revolving around false or static ideas. The new generations also accept the situation as given. As a result, the society loses its vitality to interact with changing situations and in building an appropriate response. Closing doors of ijtehad was also not challenged by the then intelligent Muslims. Even now, innovative Muslim minds, for fear of punishment, do not make their ideas public. It leads to a static society which remains backward.

An original thesis. Based on contemporary literature. For social scientists. Documented.


130 Strategy and Mechanism of Development for Muslim Economies (Establishment of Economic System of Islam)

132 Allocation of resources in Islamic framework


132:1 CHOUDHURY, MASUDUL ALAM, "Why Cannot Neoclassicism Explain Resource Allocation and Development in the Islamic Political Economy?" in Ehsan Ahmed (ed.), Role of Private and Public Sectors in Economic Development in an Islamic Perspective, Herndon, VA: International Institute of Islamic Thought, 1996, pp.17-44.

Argues that the neoclassical models are ethically as well as methodologically inapplicable to Islamic economies. Introduces a knowledge-based worldview of economic development and resource allocation. Gives an empirical analysis of characteristics of Islamic countries among the commonwealth of independent states.

Analytical. Mathematical. For economists. Based on contemporary economic literature. Documented.

132:2 ZARQA, ANAS, "Project Evaluation and Time Value Discounting", in Monzer Kahf (ed.), Lessons in Islamic Economics, Vol.2, Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 1998, pp. 541-558. Presented to the Seminar on Teaching Islamic Economics at University Level held at Dhaka during 23 July to 5 August, 1991.

Discounting for project appraisal involves comparison of or various options. It is not like discounting of loans. The first one is permissible and second one is prohibited. The most appropriate rate of discount is the expected rate of return on investment in the private sector. But for public sector projects, the objectives of Shari’ah will also have to be kept in view. Social benefits within the overall framework of Shari’ah will be aim of discounting.

For economists. based on primary sources. Documented.


133 Investment decision-making and capital budgeting in Islamic framework


133:1 AWAN, KAZIM RAZA, Project Appraisal: A Comparative Survey of Selected Conventional and Islamic Economics Literature, Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 1995, 60 pp.

After discussing main features of Islamic economy, gives a survey of literature on Islamic welfare function. Sums up debate on project appraisal. The main issues addressed are: enumeration of costs and benefits, market versus shadow prices and discounting.

For economists. Mathematical. Based on contemporary literature. Documented.

133:2 AZIZ, ABDUL, "Islamic Corporate Finance: A Tool for Development of Muslim Economies", in Ehsan Ahmed (ed.), Role of Private and Public sectors in Economic Development in an Islamic Perspective, Herndon, VA: International Institute of Islamic Thought, 1996, pp.89-104.

Explores application of Islamic principles to three major areas: (i) cost of capital and capital budgeting; (ii) working capital; (iii) dividend policy. Argues that elimination of fixed income and debt securities will result in hardship in performance of managerial finance function. Instead, the use of straight equity will accelerate the process of economic development.

For financial analysts. Based on contemporary literature. Documented.

133:3 HASANUZZAMAN,S. M. "Interest-free Financing of Social Overheads," Journal of Islamic Banking and Finance, Karachi, (15:3), Jul-Sep. 1998, pp. 7-11.

Considers the possibility of alluring investment on interest-free basis by providing some extra benefits to investors. Examples are: allowing investors for a road project to buy state land at cheaper rates around the road for developing into housing or business estates and then selling these estates at commercial rates to public; allowing a railway construction company the right to collect platform ticket charges or the right to sell to vendors space on the railway platforms, etc.

For Muslim economists. Undocumented.

133:4 KHAN, M. FAHIM, "Cost of Capital for an Islamic Firm: The Case of the IDB", Islamic Economic Studies, Jeddah, (4:1), Dec. 1996, pp. 68-72.

Gives a general formula for working out the cost of capital for an Islamic bank.

Mathematical. For economists only. Documented.

133:5 KHAN, M. FAHIM, Islamic Benchmark as Alternative to LIBOR/Interest Rates, 36 pp . Unpublished. Mimeo. [ n.d. perhaps, 1999]

Discusses need for developing a benchmark like that of interest rate or LIBOR for use as a discounting factor in the Islamic framework. Proposes that such a benchmark can be developed by using the rate of return being paid by banks to depositors or by using an index like that of DJIM on equity capital. The former can be used for investment through Islamic banks and the latter for investment through stock market.

For economists and financial analysts. Based on primary sources and contemporary literature. Documented.

133:6 KHAN, MANSOOR H., "Designing an Islamic Model for Project Finance", New Horizon, London, (74), April 1998, pp. 3-6.

Applying the Islamic concepts of bai' salam and bai’ , explains how an independent power producer (IPP) can avail of finance in the Islamic framework. The model is applicable to other investment proposals also.

For bankers and financiers. Based on contemporary literature. Undocumented.

133:7 MEENAI, ANWAR A., "Developing New Modes of Investment", New Horizon, London, (67), Sept. 1997, pp. 10-12.

Discounting is acceptable if the rate of discount is not rate of interest but expected rate of return of the project.

For economists and accountants. Based on contemporary literature. Undocumented.

133:8 MIRAKHOR, ABBAS, "Cost of Capital and Investment in an Non-Interest Economy", Islamic Economic Studies, Jeddah, (4:1), Dec. 1996, pp.35-46.

In absence of an interest rate mechanism there is no benchmark against which the cost of capital can be measured and the efficiency of investment projects evaluated. Proposes a method by which the cost of capital can be measured without resorting to a fixed and predetermined interest rate. The suggested procedure is simple and is based on the well-known Tobin's 'q' and can be used in the private as well as public sectors to obtain a benchmark with reference to which investment decisions can be made.

Analytical. Uses mathematics. For economists only. Documented.


134 Islamic economic institutions


134:1 Tabung Haji As An Islamic Financial Institution, Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 1995, 41pp.

A general introduction to the evolution, organization and operation of Tabung Haji -the Malaysian institution for collecting savings and facilitating the hajj.

For general readers. Based on the organization's internal documents. Undocumented.

134:2 MANNAN, M. A., Hajj Management of Malaysia, Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 1996, 103 pp.

Introduces the Malaysian institution of Tabung Haji, its evolution, history and progress. Highlights its role in mobilizing resources and making them available for hajj. Suggests the Muslim ummah should try to develop the institution of Hajj. It should make this occasion a place for exchanging information on prospective projects. Ultimately, the Muslim ummah should develop a central village for exhibiting the products of the whole ummah at the time of Hajj.

For general readers, policy makers and economists. Based on secondary sources. Documented.


135 Islamic economic development Management


135:1 ROUBAIE, AMER, al-, Economic Development Management: An Islamic Perspective, 1998, 25pp. Unpublished. Presented to the First international Conference on Islamic Economic Development Management organized by the Universiti Sains Malaysia during 8-10 December 1998.

Asserts that Islamic development management presents a comprehensive approach to social change as compared to Western economic approach that revolves around per capita income or output. Basic purpose of development in Islam is to enhance human welfare not only in terms of material requirements but also with respect to spiritual development.

For economists. Based on primary sources. Documented.

135:2 SALLEH, M. SYUKRI, Conceptualizing Islamic Development Management, 1998, 17 pp. Unpublished. Presented to the First International Conference on Islamic Economic Development Management organized by the Universiti Sains Malaysia during 8-10 December 1998.

Clarifies the concept of Islamic economic development management and compares it the with western concept of economic development. Discusses various issues relating to the concept of Islamic economic development management.

For economists. Based on primary sources. Documented.

135:3 UTHMAN, M. ZAINY, Islamic Worldview and Development: An Assessment of Myrdal's Modernization Ideals from an Islamic Perspective, 1998, 22 pp. Unpublished. Presented to the First International Conference on Islamic Development Management organized by the Universiti Sains Malaysia during 8-10 December 1998.

Attempts to evaluate modernization ideals along with the ethical and noble value standards which Islam has revealed. Observes that planning of any development program should not break any of the established ethical standards and values expounded by Islam. It should, rather, encourage them in order to bring about a truly emancipated man.

For economists. Based on primary sources. Documented.

140 Economic Fluctuations

143 Indexation


143:1 KHAKI, M. ASLAM, "Ashiya ka Tabadala aur Maujudah Currency," (Urdu) (Exchange of Goods and the Prevalent Currency) Nawa-i-Qanun, Islamabad, (2:10), Oct. 1991, pp. 53-61.

Discusses implications of inflation for purchasing power. Argues that indexation of loans to inflation is necessary for doing justice to creditors.

Based on everyday examples. Undocumented.

143:2 TASIN, MUHAMMAD, "Aik Ahm Iqtisadi Mas'ala aur us ka hall" (Urdu) (An Important Economic Problem and Its Solution) Hikmat e Qur'an, Lahore, (16:4), April 1997, pp. 46-51, 54.

Clarifies his earlier contention about indexation of loans. Insists that indexation of loans will not be riba.

For general readers. Based on primary sources. Documented.


200 Economics Statistics

220 Economic and Social Statistics

223 Cooperation for statistical information


223:1 KAMARUDDIN, A. R., "OIC Information Systems Network: Information Highway for Member Countries", Journal of Economic Cooperation Among Islamic Countries, Ankara, (17:1-2), Jan. 1996, pp. 61-86.

The OICIS-NET is a project aimed at setting up a global information network which will eventually interlink the national, regional, and international information systems and services. Presents the project in terms of its nature, purpose, structure and main features. Describes the steps taken by Islamic Development Bank in implementing the project in accordance with the strategy and guidelines adopted in April 1994.

For information scientists. Documented.

223:2 UGUREL, ILHAN, "Co-operation in the Area of Statistics Among the OIC Countries," Journal of Economic Cooperation Among Islamic Countries, Ankara, (17:1-2), Jan. 1996, pp. 41-60.

Stresses the importance of statistics as a branch of knowledge. Gives an account of the progress made by the SESRTCIC in its efforts to enhance co-operation in statistics among the OIC member countries.

For statisticians and information scientists. Documented.


300 Domestic Monetary and Fiscal Theory and Institutions

310 Domestic Monetary and Financial Theory and Institutions

311 Riba and its prohibition (including riba al-fadl)


311:1Journal of Islamic Banking and Finance, Karachi, (18:3-4), Jul 01, 192 pp.

The entire issue of the journal is devoted to the problem of riba and its elimination from economy. Includes 14 articles on various aspects of riba and Islamic banking. All these papers have been taken from earlier publications of the authors and have been annotated in the present or earlier volumes of the present bibliography.

311:2 Supreme Court of Pakistan Shari’ah Appellate Tribunal Judgment on Riba, Lahore: PLD Publishers, 2000, 557 pp.

Judgment of the Shari’ah Appellate Bench of the Supreme Court of Pakistan decreed on 23 December 1999. The judgment was on a number of appeals lying with the Supreme Court of Pakistan against the Federal Shari’ah Court Judgment of November 1991 that had declared all types of interest as riba. The present judgment upheld the FSC judgment and ordered the Government of Pakistan to take a number of measures including new legislation and setting up of a Commission for Islamization of the Financial System by June 2001.

Juristic. For bankers, government policy makers and lawyers. Based on primary sources and contemporary literature. Documented.

311:3 Report on Elimination of Riba, 1997, 114 pp. Unpublished report of the Commission for Islamization of Economy, Government of Pakistan, Islamabad.

Report prepared under the chairmanship of Raja Zafarul Haq. Reiterates the basic teachings of Islam relating to economy. Reviews the efforts earlier made with regard to elimination of interest from the economy of Pakistan. Proposes a strategy to proceed further and rectify the mistakes made so far. Presents a draft law for the prohibition of riba. Also analyses probable effect of the prohibition of riba on various macroeconomic indicators of the economy.

For government policy makers, legislators and bankers. Based on primary sources and contemporary literature. Documented.

311:4 AHMAD, A. R.YUSRI, "Riba, its Economic Rationale and Implications", New Horizon, London, (109), May-Jun 2000, pp. 9-14.

Riba allocates resources inefficiently. It distorts income distribution. It encourages idleness. Prohibition of riba would not affect the rate of savings.

For economists. Based on primary sources. Undocumented.

311:5 AHMAD, KHURSHID, "Sud ki La'anat se Nijat: Asl Rukawat," (Urdu) (Getting Rid of the Curse of Interest: Real Obstacle) Tarjmanul Qur'an, Lahore, (124:5), May 1997, pp. 3-16.

Analyzes reasons for non-implementation of interest-free banking in Pakistan. Concludes that the political leadership in the country is neither serious nor sincere in abolishing interest from the economy. There exists a sizeable literature which shows the way for the change-over. The practical experience of Islamic banks also testifies to the same conclusion.

311:6 AHMAD, SHAIKH MAHMUD, Man and Money: Towards an Alternative Basis of Credit, Karachi: Oxford University Press, 2002, 555 pp.

Critically examines the theory of interest as expounded in conventional economics. Argues that there is no sound basis for keeping interest as a basis for credit. Expounds the concept of Time Multiple Counter Loans (TMCL). Gives a detailed description of the operations of a commercial bank on the basis of TMCL.

Based on contemporary economic theory. For economists. Documented.

311:7 AHSANI, A.H., "a Historical Analysis Outlining the Attributes of Islamic Economic System and the Fallacy of the Dominant Interest-based Capitalist Order", New Horizon, London, (96), Jan 2000, pp. 3-4,12.

Argues that the present day capitalist system that is based on interest has failed to bring prosperity to the humanity, which is searching for another order. The Islamic economic system provides that alternative.

For lay readers. Undocumented.

311:8 AMJAD, MUIZ, "Riba ka khatima,"(Urdu) (Abolition of Interest) Ishraq, Lahore, 11:5), May 1999, pp.4-16.

A reply to questionnaire circulated by the Supreme Court of Pakistan on the concept of riba. Defines the term riba. Holds the orthodox position. However, thinks that indexation of loans equal to actual inflation is lawful. Similarly, to the extent the government is unable to pay back the domestic debt, taking of interest on these loans would remain an unavoidable sin.

Juristic. Based on primary sources. Undocumented.

311:9 ANSARI-POUR, M. A., "The Prohibition of Interest in Iran since the Revolution", New Horizon, London, (70-71), Dec 1997-Jan 1998, pp. 8-14.

Since the Islamic Revolution in Iran, the government has taken a number of legal measures for abolishing interest. The law allows an increase over principal of a loan if it is not pre-determined and binding and is purely voluntary. We should distinguish between "net interest" and "gross interest", where the latter includes such things as bank charges and rate of inflation. It should be the "net Interest' that is prohibited and not the "gross interest." Stipulation of interest is void, but it does not make the whole contract void. The loan contract remains valid, of course, without interest.

For general readers. Based on contemporary literature on Iran. Undocumented.

311:10 ASHRAF, JAWAD, "The Evolution of the Translation of Usury into the Spirit of Capitalism and the Qur’anic Response", The Qur’anic Horizon, Lahore, (5:4) Oct-Dec 2000, pp. 20-48.

Discusses evolution of interpretation of the Torah and Gospel (Injil) prohibiting usury. The Jewish and Christian religious scholars gradually gave way to a more secular interpretation, which resulted in legitimization of capitalism. As compared to earlier books, the Qur’anic verses relating to usury are quite clear and applicable to all societies and all people.

For jurists. Based on primary sources. Documented.

311:11 ASLAM, OWAIS, "Pakistan's Supreme Court Decision on Riba", New Horizon, London, (97), Feb 2000, pp. 10-13.

Analyzes implications of decision of the Supreme Court of Pakistan's Shari’ah Appellate Bench on prohibition of riba.

For general readers. Undocumented.

311:12 AYUB, MUHAMMAD, "Appeal of the Government of Pakistan Against FSC Judgment on Laws Involving Interest", Journal of Islamic Banking and Finance, Karachi, (17:2), April 2000, pp. 43-52.

A descriptive report of the main arguments presented to the court by various scholars against interest.

For general readers and jurists. Based on published reports of the court proceedings. Undocumented.

311:13 AYUB, MUHAMMAD, "Banks' Prize Schemes: Their Shari'i Position", Journal of Islamic Banking and Finance, Karachi, (17:2), April 2000, pp. 34-42.

Argues that the prize schemes announced by various banks in Pakistan do not conform to the Shari’ah. They involve interest, gambling and uncertainty, all prohibited by the Shari’ah.

For jurists. Based on legal documents. Documented.

311:14 AYYUBI, SALAHUDDIN, Qur'an Hakim aur Riba (Urdu) (Qur'an and Riba), Lahore: Idara Saut al-Qur'an, nd, 46 pp.

Reinterprets the Qur’anic verses relating to riba. Thinks riba means any wealth surplus to one's need. Seen in this perspective only hoarding of wealth is prohibited. The prevalent interest on loans is permissible. Similarly indexing of loans to inflation is also allowed.

For general readers. Based on primary sources. Undocumented.

311:15 BUCKLEY, SUSAN L., Teachings on Usury in Judaism, Christianity and Islam, New York: The Edwin Mellon Press, 2000, 386 pp.

A comprehensive treatise on teachings relating to usury in Judaism, Christianity, and Islam. Traces origins of theory and prohibition of usury in the three great religions and the evolutionary process through which it came to be rationalized in Judaism and Christianity. Similarly, traces the teachings of Islam relating to riba and its present day implementation in the form of Islamic banking. Concludes that the three religions have a lot of common ground and it is only the present effort of the Muslims to institutionalize prohibition of interest that gives hope to the humanity. The non-Muslims can learn a lot from the serious effort being made by the Muslims in this age.

For theologian, economists, bankers and general readers. Based on primary sources. Documented.

311:16 CHAPRA, M.UMER, "Why has Islam Prohibited Interest? Rationale Behind the Prohibition of Interest", Review of Islamic Economics, Leicester, (9), 2000, pp. 5-20.

Originally presented to Appellate Bench of the Supreme Court of Pakistan and also a modified version of author's chapter 7 of Future of Economics: An Islamic Perspective (The Islamic Foundation, Leicester, 2000). Argues that the Islamic Shari’ah has certain goals like other civilized societies. Islam has prohibited interest as it is an obstacle in realizing those goals. Points out negative role of interest in promoting unemployment, inequalities of income, wastefulness of consumption, and reduction in savings and investment.

For economists. Based on primary sources and contemporary literature. Documented.

311:17 DIWANY, TAREK EL-, The Problem with Interest, London TA-HA Publishers, 1997, 206 pp.

Interest is hardly justified on purely rational ground. The present day banking system is based on fractional reserve system, which is the root of all evils in the modern day economies. The banking system should be organized on 100 per cent reserve for the current accounts and profit-loss sharing for the investment accounts. In this scenario, there will be no monetary instability or inflation. There will be no need for a monetary policy. The money supply should be fully backed by gold. It will put an end to spurious expansion in the money supply. The Islamic business ethics and value judgments supplement the above model and create an environment where money becomes subordinate to human beings.

For economists. Based on contemporary literature. Documented.

311:18 GHAZALI, A. H. EL-, Profit Versus Bank Interest in Economic Analysis, Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 1994, 61 pp.

A compact thesis on harms of interest to a present day economy. Argues that a system based on profit rather than is more stable and workable than an interest-based system. Refutes various arguments in favor of interest. Part two of the booklet compiles a set of decrees on the prohibition of interest by various Islamic institutions and jurists.

A very valuable document. For economists and jurists. Based on primary sources. Documented.

311:19 HARON, SUDIN, "Profit-Sharing: Questions That Need To Be Answered," New Horizon, London, (60), Feb 1997, pp.10-12.

Raises the important question whether interest rate can be used as a point of reference for fixing profit-sharing ratio of Islamic banks, as most of the existing Islamic banks are doing. Suggests that Muslim depositors should not expect any return from Islamic banks and the banks should not fix their return with reference to the market rate of interest. In this way, the cost of funds to banks' clients will be substantially lower than the prevalent market rate.

For bankers and economists. Based on contemporary literature. Undocumented.

311:20 HASANUZZAMAN, S. M., "Conceptual Foundations of Riba in Qur'an, Hadith and Fiqh", Journal of Islamic Banking and Finance, Karachi, (11:1), Jan 1994, pp.7-15.

Discusses verses of the Qur'an relating to riba and highlights their meanings in light of various commentaries. Repudiates the assertion that riba pertains to consumption loans only. Also discusses the concept of riba al-fadl in the light of hadith and fiqh literature.

For jurists and Muslim economists. Based on primary sources. Documented.

311:21 HUQ, ISMAT ARA, "Impact of Interest on Economy - An Opinion Survey of Some Relevant Scholars," Thoughts on Economics, Dhaka, (10:1-2), Jan-Jun 2000, pp. 27-48.

Examines the impact of interest on economic, social, political and international affairs of Bangladesh. The study is based on the opinion survey of a total of 40 scholars. The study reveals that there is a remarkable difference of opinion among Islamic and non-Islamic scholars as regards the impact of interest.

Based on opinion survey. For economists and general readers. Supported by statistical tables.

311:22 HUQ, ISMAT ARA, "An analysis of Some issues Relating to Riba from an Islamic Perspective," in Proceedings of International Conference on the Theme of Accounting, Commerce and Finance: The Islamic perspective. Organized by the University of Western Sydney, Macarthur, Australia during 18-20 February, 1997, pp. 75-83

Argues that preference shares and debentures are more akin to interest and thus not legitimate from the Islamic point of view.

For general readers. Based on primary sources. Documented.

311:23 IFTIKHAR, ASIF, "What is Riba?" Renaissance, Lahore, (9:7), July 1999, pp. 48-62.

In a question-answer form, argues that all types of interest are riba. Explains the Islamic rationale behind prohibition of riba. Mark-up is also a form of riba. Interest from non-Muslims is also riba. The theory of riba-al fadl needs to be understood properly. Its prevalent understanding is not correct. In fact, riba in barter transactions also arises only when there is a loan transaction.

For general readers. Based on primary sources. Documented.

311:24 KAZMI, AQDAS ALI, "First step Toward Riba-free Economy," Daily Dawn, Karachi, 12 June 99.

Defines the term riba and concludes that it is equivalent to exploitative and usurious rates of interest. The prevalent commercial interest is not riba. Those who are trying to equate the two are in the process of turning the wheel of progress back by a few centuries.

For economists and general readers. Based on primary sources. Documented.

311:25 KEEN, STEVE, "From Prohibition to Depression: The Western Attitude to Usury," in Proceedings of International Conference On the Theme of Accounting, Commerce and Finance: The Islamic Perspective organized by the University of Western Sydney, Macarthur, during 18-29 February ,1997, pp. 55-74.

Traces the history of usury in the West. Argues that usury was criticized and condemned in the West but gradually it became acceptable. Introduces the theory of Fisher (1930) on interest. Argues that the modern economies under capitalism are susceptible to crises due to over-indebtedness. The fact that interest remains due even though the enterprise has not made any profit, leads to mass scale bankruptcies. Because of this, the ancient criticism on usury is still valid. As compared to this, the Islamic concept of profit sharing saves the enterprises from bankruptcy. It also saves the economy from collapse.

Uses diagrams. For economists. Based on original resources. Documented.

311:26 KHAN, MOHSIN S., "The Challenges for Islamic Banks," New Horizon, London, (62), April 1997, pp. 9-11.

Examines three areas: analytical or theoretical aspects of Islamic banking; central banking and experience of Islamic banking. Enumerates challenges in implementing the Islamic banking.

For bankers and economists. Based on contemporary literature and practice. Documented.

311:27KHAN, MUHAMMAD AKRAM, "Strategy for the Elimination of Riba", The Qur'anic Horizons, Lahore, (2:4), Oct-Dec 1997, pp. 66-67.

Comments on Sayyid Tahir's paper on the same subject and published in the same journal (2:3, July-Sep 1997). Argues that gradualism should be adopted in eliminating the interest from the economy.

For economists and jurists. Undocumented.

311:28 KHAN, MUHAMMAD AKRAM, "Eliminating Interest from the Economy: Do We Need a Public Law?”, New Horizon, London, (109), May-Jun 2000, pp. 21-30.

Argues that riba is an economic phenomenon. It should be eliminated from the economy through economic imperatives. It is not a legal phenomenon. The Shari’ah did not promulgate any law for prohibiting it. Instead, it should be left to the free will of the people. The state should try to eliminate it through an economic mechanism. It should facilitate development and evolution of Islamic financial system and people should be persuaded by the operation of Islamic financial institutions to adopt them and to leave riba-based transactions. Proposes institutional mechanism for eliminating riba.

For economists and policy- makers. Based on primary sources. Undocumented.

311:29 KURAN, TIMUR, "Interest," in The Oxford Encyclopedia of the Modern Islamic World, New York: Oxford University Press, 1995, pp. 205-207.

Surveys the arguments in favor and against interest. Argues that the orthodox Muslim opinion, which equates interest and riba, has not been practiced by the Muslims throughout history. Nor are they practicing it these days. They are relying on a number of ruses in the garb of Islamic banking.

For economists. Based on primary sources. Documented.

311:30 LEWIS, MERVYN K., "The Cross and the Crescent: Comparing Islamic and Christian Attitudes to Usury," Iqtisad: Journal of Islamic Economics, Yogyakarta, (1:1), April 1999, pp. 1-23.

The Christian objection to usury was almost identical to the Islamic viewpoint. Many of the legal devices used to hide interest were borrowed by the Christians from the Muslim merchants. Some were similar to the Muslim musharaka and mudaraba. Differences included: severity of penalties in Christianity. It also lacked an overriding injunction on the topic like that in the Qur'an.

A scholarly paper for economists and theologians. Based on primary sources. Documented.

311:31 MANSURI, TAHIR, "Riba per Ba'd Ma'asar Nuqta Hai Nazar ka Ilmi Jaiza," (Urdu) (Review of Some Contemporary Theories of Riba) Fikro Nazar, Islamabad, (35:1), July 1997, pp. 13-38.

Critically examines the concepts and definition of riba presented by Ziaul Haq, Imran Niyazee and Sayyed Tahir. Disagrees with all of them since their concepts are at variance with the majority of the Shari’ah scholars.

A scholarly paper. For jurists. Based on primary sources. Documented.

311:32 MILLS, PAUL S., Islamic Finance: Theory and Practice, London: Macmillan Press, 1999, 166 pp.

Develops a critique of interest-based debt finance. Argues that the Islamic analysis of banking and finance is a viable option as compared to interest-based finance. Seen in light of actual experience of Islamic banking and finance, it shows a way for considering the possibility of introducing non-interest bearing finance in the Western economies. Develops a model of profit-loss sharing. Argues that the non-interest bearing finance brings in greater stability as compared to interest-bearing finance. Identifies key issues in Islamic finance that need to be resolved. Outlines a survey of interest-related ideas in the Western tradition, religions and literature.

For economists. Based on primary sources as well contemporary literature. Documented.

311:33 NUR, ELMI M., The Principles of an Integrated Concept of Riba: Toward an Islamic Theory of Value, 40 pp. Unpublished. Presented to the International Conference on Islamic Economics in 21st Century organized by International Islamic University Malaysia during 9-12 August, 1999 at Kuala Lumpur.

Examines the concepts of riba al-nasi'a and riba al-fadl. Integrates the two concepts by re-interpreting riba al-fadl. Considers that in exchange of commodities, quality should also be considered for determining the equivalence. The Prophetic injunction regarding simultaneous exchange is only meant to give the two sides an opportunity for inspection.

For jurists and economists. Based on primary sources. Documented.

311:34 PERVEZ, IMTIAZ A., "What is the Islamic View on Time Value of Money and How Does It Differ from That of the Traditional One?", New Horizon, London, (65), July 1997, pp.7-8.

The Western concept of time value of money is the anchor on which the theory of interest is based. In the Islamic framework, the time value of money on purely financial transactions is not recognized. Time value may be applicable only on asset-based transactions such as ijara rentals where the use of asset is relevant to its period.

For economists. Based on contemporary literature. Undocumented.

311:35 QARDAWAI, YUSUF AL-, Riba and Bank Ka Sud (Urdu) (Riba and the Interest of Banks) , Islamabad: Institute of Policy Studies, 1993, 117 pp. Urdu translation by Atiq al-Zafar.

A comprehensive statement on the classical concept of riba and its relationship with the prevalent interest in commercial transactions. Argues that riba and interest are identical.

Refutes the arguments of Sheikh Tantawi and Sheikh Shaltut of Egypt.

Based on primary sources. Documented.

311:36 RAHMAN, GOHAR, Hurmat e Sud (Urdu) (Prohibition of Interest), Lahore: Islamic Research Academy, Mansura-Lahore, 1993, 165 pp.

A reply to the questionnaire issued by the Federal Shari’ah Court of Pakistan. Deals with the basic issues relating to definition, scope of riba and strategy of eliminating interest. Argues that riba covers all types of interest and the government should enact laws to abolish it. Considers that interest on provident funds is not riba. Similarly, difference between cash and credit prices is also not riba.

For jurists. based on primary sources. Documented.

311:37 RAHMAN, GOHAR, "Sud ke jawaz ke Liye Heelay," (Urdu) (Subterfuges to Legalize Interest) Tarjamanul Qur'an, Lahore, (126:6), June 1999, pp. 39-51.

Argues that some of the present day scholars have devised a number of subterfuges to legalize interest in disguise. Lists those subterfuges and explains their mechanism. Thinks that these tricks cannot help legalize interest. People should beware of them.

For general readers. based on primary sources. Documented.

311:38 RAHMAN, TANZILUR, "Alternate to Riba," Journal of Islamic Banking and Finance, Karachi, (15:4), Oct-Dec. 1998, pp.7-20.

Discusses the concept of riba. Also discusses various alternative modes of finance like mudaraba, musharaka, ijara, time-multiple-counter-loans, and bai' mu'ajjal. Traces the history of Islamic banking in Pakistan. Points to need for necessary legal changes for making this change effective.

For general readers. Undocumented.

311:39 RAHMAN, TANZILUR, "Alternatives to Riba", Hamdard Islamicus, Karachi, (XXIII: 3), July 2000, pp. 65-75.

In the background of Pakistani efforts to Islamize the entire financial sector during 1980s, surveys the various alternatives to riba-based banking. Analyzes the setback to the efforts in Pakistan.

Based on first hand experience of the author. Undocumented.

311:40 REHMAN, TANZILUR, The Judgment That Could Not be Delivered, Karachi: Royal Book Company, 1994, 151 pp.

The author, while being the Chief Justice of the Federal Shari’ah Court in Pakistan prepared this judgment and retired from service before he could deliver it. The judgment remained undelivered. Deals with the question whether an Islamic government or its corporate bodies could lawfully enter into agreements with other governments or corporate bodies for the payment of interest on loans. Explores the question in the light of fiqh, hadith and Qur’anic literature. Concludes that the Islamic governments or other bodies cannot lawfully enter into agreements for paying interest on their loans. Thus section 19 of the Shari’ah Act of Pakistan was also ultra vires the Shari’ah.

For jurists. Based on primary sources. Documented.

311:41 ROSLY, SAIFUL AZHAR, Bay 'an Dayn and Islamic Bonds Issues in Malaysia, 21 pp. Unpublished. Paper presented to the International Conference on Islamic Economics in 21st Century organized by the International Islamic University Malaysia, during 9-12 August, 1999 at Kuala Lumpur.

Argues that the issuance of the bond is a mode of deferred payments arising from murabaha. If they are at par value, they are covered by the Shari’ah. Discounting of these bonds by investors to the issuers is also covered by the Shari’ah. However, discounting by third parties is not covered. In general, the bond should be avoided as a debt-based economy is not in the spirit of Islam.

For jurists and economists. Based on primary sources. Documented.

311:42 SHAJARI, H., "The Interest Rate and the Islamic Banking", Islamic Economic Studies, Jeddah, (3:1), Dec 95, pp. 115-122.

Argues that omitting the rate of interest as price of money is not possible. Suggests that deposits may be treated as a kind of purchasing power which it has received from the owners of the deposits and must at the time of repayment pay its equal. Due to this, a new variable called, "Compensation Rate" has been introduced. This rate would create a proportional stability of the purchasing power with a coefficient adjustment. During periods of inflation it protects against diminution in value.

For economists. Based on contemporary economic literature.

311:43 SIDDIQUI, SHAHID HASAN, "Establishment of Model Islamic Bank is Need of the Hour - Interest-free Banking as Adopted in Pakistan is Un-Islamic", Journal of Islamic Banking and Finance, Karachi, (14:2), April 1997, pp.7-12.

Criticizes the Islamic banking in Pakistan and concludes that it is both un-Islamic as well as exploitative. Proposes the formation of a Model Islamic Bank.

For general readers. Based on contemporary sources. Undocumented.

311:44 SIRAJ, M. A. HADI al-,"Qurud, Buyu, and Riba", in Monzer Kahf (ed.), Lessons in Islamic Economics, Jeddah: Islamic Research and Training Institute, Islamic Development Bank , 1998, pp. 79-86. Presented to the Seminar on Teaching islamic Economics at University Level held at Dhaka during 23 July to 5 August 1991.

Discusses basic rules relating to riba, riba al-fadl, and sale transactions in Islam.

For jurists. Based on primary sources. Documented.

311:45 TAHIR, SAYYID, "Strategy for the Elimination of Riba With Special Reference to Existing Debts", Qur'anic Horizons, Lahore, (2:3), July 97, pp. 70-95.

Argues that the strategy for eliminating riba from the economy should be instantaneous and not gradual. Gradualism is against the Shari’ah. For foreign debts, the lenders should be taken into confidence for some sort of settlement. For domestic debts, proposes a number of drastic measures to eliminate riba conclusively from the economy.

For economists and general readers. Based on primary sources. Documented.

311:46 UTHMANI, M. TAQI, The Historic Judgment on Interest Delivered in the Supreme Court if Pakistan, Karachi: Idartul-Ma'arif, 2000, 247 pp.

It is part of the judgment of the Supreme Court of Pakistan delivered on 23rd December 1999 on appeal of the Federation of Pakistan against the Federal Shari’ah Court Judgment of 1991 on the question of riba. This part was written by the author, being judge of the Supreme Court Shari’ah Appellate Bench. Deals with the whole question of riba, its legal, economic and financial aspects and declares that all forms of interest are riba. Discusses various related issues and refutes all arguments offered for the legitimization of interest.

For jurists, economists and financial experts. Based on primary sources as well as contemporary economic literature. Documented.

311:47 UZAIR, MOHAMMAD, "Some Implications of Non-interest Based System", Journal of Islamic Banking and Finance, Karachi, (15:2), April 1998, pp. 18-24.

Points out changes required in monetary and fiscal policies due to abolition of interest. The central banks will need to adopt profit-loss sharing as a tool to adjust credit supply. For substituting interest on treasury bills, the central bank can use opportunity cost of banks on inter-bank call money. Alternatively, such bills can be issued against the administrative cost of the banks only. Similarly, for public debt, the government can offer average profit on public enterprises or average profit on corporate sector during the preceding year. For widows, orphans and pensioners who like to have risk-free investments, various mutual funds can be established where investment in carefully selected equities can be a good substitute of interest.

For bankers and economists. Undocumented.

311:48 VOGEL, FRANK E., Islamic Law and Finance: Religion, Risk and Return, London: Kluwer Law International, 1998, 330 pp.

Part one covers Islamic law of finance and has five chapters: Islamic finance as an application of Islamic law; Qur’an and Sunnah on contract and commerce; Islamic law of usury; Islamic law of contract; Islamic law of financial institutions and instruments. Part two has three chapters: Islamic financial instruments; opportunity rates and Islamic capital; derivatives in Islamic finance. The first part is legal while the second part is analytical. Part three deals with case studies of Islamic financial innovations.

For jurists, financial analysts and economists. Based on primary sources. Documented.

311:49 WAHEED, ATIF, "Pakistan men Insidad e Sud ki Koshashon ki Tarikh" (Urdu) (History of the Efforts for Abolishing Interest in Pakistan) Meethaq, Lahore, (46:4), April'97, pp. 47-58.

Summarizes efforts made in Pakistan for abolishing interest from the economy. Makes suggestions regarding a suitable strategy to abolish interest.

For general readers. Undocumented.

311:50 ZAMAN, ARSHAD, "Interest and the Modern Economy", Islamic Economic Studies, Jeddah, (8:2), April 2001, pp.61-74.

With reference to the debate on elimination of interest from the economy of Pakistan, argue that it would not cause any economic disruption in the economy. The business community prefers to rely on equity. The savings, investment and distribution of income and wealth would improve. Government would be able to finance its activities on the basis of interest-free alternatives.

For economists and policy makers. Based on contemporary economic literature. Documented.

311:51 ZIAUDDIN, M., "Blueprint for an Islamic Financial System", New Horizon, London, (67), Sept 1997, pp. 8-9.

A summary of the report submitted by the International Islamic University Islamabad to the Commission for Islamization of Economy, Pakistan in July 1987. Some of the interesting ideas are as follows:

a) The country should be on a flexible exchange rate system with fully convertible currency.

b) The Shari’ah rule relating to bai’ al-sarf do not apply to the present day paper currency.

c) Forward trading of currencies does not violate the Shari’ah.

d) The exporter or his bank can sell their collection rights against cash payments like bai' mu’ajjal based tradable securities. To this extent, the bills of exchange are tradable instruments.

For bankers and economists. Based on primary and contemporary sources. Undocumented.

312 Riba-free commercial banking: Theory and practice


312:1 Directory of Islamic Banks, International Association of Islamic Banks, 1990, 160+248 pp.

Provides basic information on Islamic banks regarding their functions, activities, progress, social scope and future outlook. Two chapters present fundamentals of Islamic banking and an introduction to International Association of Islamic Banks.

A source book for the Islamic financial institutions. Consists of two parts: English and Arabic. The Arabic part is more elaborate.

312:2 Concise Directory of Islamic Financial Institutions, London: Institute of Islamic Banking and Insurance, 1997, 32pp.

A list of Islamic financial institutions. Gives name, address, telephone, fax and names of board of directors for each entry.

312:3 Interim Report of The Commission for Transformation of Financial System, Islamabad: Ministry of Finance, Government of Pakistan, Oct. 2000, 87 pp. Unpublished. Mimeo.

It is an interim report by the Commission for Transformation of Financial System set up by the Government of Pakistan in response to the decision of the Appellate Bench of the Supreme Court on the appeal of the Government against a Shari’ah Court Judgment announced in 1991. The report reviews previous work on the subject and makes proposals for transforming the financial system of the economy on riba-free basis. It specifically deals with Islamic financial markets and instruments of monetary policy. Makes proposals for implementing the recommendations.

For policy makers. Based on primary sources and built on the previous work on the subject.

312:4 Experiences in Islamic Banking: A Case Study of Islami Bank Bangladesh, Islamabad: Institute of Policy Studies, 2000, 88 pp. Report of a seminar organized by the Institute of Policy Studies, Islamabad on 21 June 1999.

Consists of two papers. The first paper is by Waqar Masud Khan on the Pakistan’s experience of Islamization of banks and financial institutions. The second paper is by Fariduddin Ahmad, Muhammad Sharif Hussain and Shah Abdul Hannan on the experience of Islami Bank Bangladesh. Waqar Masud Khan summarizes the story of failure of the experience in Pakistan. The second paper documents the success story of Islamic banking in Bangladesh.

For economists, bankers and policy makers. Based on published reports. Documented.

312:5 "The Law for Usury (Interest)-Free Banking in Iran," Islamic Economic Studies, Jeddah, (7:1-2), Oct 1999-April 2000, pp. 125-133.

Text of the law on interest-free banking in Iran as approved on 30 August 1983.

For economists, bankers and financial analysts.

312:6 Islamic Banking and Insurance, Dhaka: Islami Bank Bangladesh, 1990, 210 pp.

Proceedings and papers of International Seminar held in Dhaka on 27 October 1989 organized by the International Association of Islamic Banks and Islami Bank Bangladesh. Some papers in the volume have been annotated in the third volume of the present bibliography (312:101, 312:24). Others have been included in this volume at appropriate locations.

312:7 AHAMD, AUSAF, Contemporary Practices of Islamic Financing Techniques, Jeddah: Islamic Research and Training Institute, 1993, 75 pp.

Gives a brief account of various financing modes adopted by Islamic banks in practice. Case study of Pakistan and Iran.

For economists and bankers. Based on published literature. Documented.

312:8 AHMAD, AUSAF, Structure of Deposits in Selected Islamic Banks, Jeddah: Islamic Research and Training Institute, 1997, 143 pp.

Gives theoretical basis of various concepts relating to deposits in banks from the Islamic point of view. Analyzes the deposits of ten top Islamic banks and concludes about their operations. Contains a statistical appendix.

For bankers and economists. Based on published statistics. Documented.

312:9 AHMAD, KHURSHID, "Interest-free Banking: Highway to Equitable Growth," Pakistan Banker, Lahore, (7:2), Jul-Dec 1997, pp. 104-112.

Within the existing world financial scene, conceives the model of Islamic banking and gives reasons for its evolution. Argues that the concept of Islamic banking is more equitable, more profitable and more stable in the long run. Outlines the progress made so far. But concedes that there is still a long way to go. Identifies the challenges and prospects.

For general readers and economists. Based on contemporary literature. Documented.

312:10 AHMAD, KHURSHID, "Islamic Finance and Banking: The Challenge and Prospects", Review of Islamic Economics, Leicester, (9), 2000, pp. 57-82.

Originally a keynote address to the First International Conference on Islamic Finance and Banking held at Houston, USA, in July 1998 under Islamic Society of North America. Reviews the progress made by Islamic banks in the recent decades. Islamic banking stands for equity-sharing and stake-taking. It is opposed to exploitative, unjust and crisis-generating Western economic system. Based on religious and moral premises, the Islamic finance and banking model has to address many challenges and tasks ahead, ranging from an efficient and equitable system to complete restructuring of the economy. The Islamic banking movement is a positive development which bears great promise for the future.

For economists. Based on contemporary literature. Documented.

312:11 AHMED, NASIRUDDIN, "Islamic Banking and Its Mode of Investments", New Horizon, London, (67), Sept 97, pp.3-7.

A elementary essay on Islamic banking and Islamic modes of finance.

For general readers. Undocumented.

312:12 AHMED, ZIAUDDIN (DR),"Conversion from Interest-based to Islamic Banking," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Institute of Islamic Banking and Insurance, 2000, pp. 83-96

Discusses the rationale of Islamic banking in brief. Gives in detail the method to convert interest-based transaction of banks into Islamic format. Takes up balance sheet of the bank and discusses each item of liability and asset sides.

For economists, bankers and policy makers. Based on primary sources and contemporary literature. Undocumented.

312:13 ALAM, JAHANGIR, "An Attempt to Measure Productivity of Islamic and Conventional Banks in Bangladesh: A Comparative Study", Thoughts on Economics, Dhaka, (10:3-4), Jul-Dec 2000, pp.22-33.

Compares the performance of Islami Bank Bangladesh with three conventional banks: Agrarian Bank, National Bank, Arab Bangladesh Bank. The period covered is 1986-1999. Concludes that on a number of productivity indicators the performance of the Islamic bank was higher than the conventional banks.

Analytical. For economists and bankers. Based on published reports. Documented.

312:14 ALAM, M. BADIUL, "Analysis of Comparative Financial Performance in Banking Sector of Bangladesh: A Study of Interest-free and Secular Banks. Thoughts on Economics, Dhaka, (7:3-4), Jan-Jun 1998, pp. 43-60.

Compares the performance of Arab Bangladesh Bank (secular bank) and Islamic Bangladesh Bank for the period 1988-95. Concludes that on all indicators the performance of the Islamic bank was better than the secular bank.

For economists and bankers. Based on published data. Documented.

312:15 ALI, MUAZZAM, "Islamic Banking: Challenge From Within", New Horizon, London, (101), August 2000, pp. 3-4.

A critical review of the Islamic banking movement as it stood in the mid-half of year 2000. Warns Islamic bankers that if they did not take enough innovative measures to adhere to the Shari’ah and kept themselves busy with cosmetic changes, the whole movement of Islamic finance would wither away.

For Islamic bankers and general readers. Based on author's direct observation. Undocumented.

312:16 ANWAR, MUHAMMAD, "Interest-bearing Debts," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London Institute of Islamic Banking and Insurance, 2000, pp. 148-153

Argues that Islamic economists have not been able to find a satisfactory solution to the problem of inflation and the way it affects the relationship of borrowers and lenders. Thinks a compensation equal to inflation rate should not be considered riba. Discusses the methodology of handling interest-bearing loans on the eve of conversion of conventional banks into Islamic banks. Suggests that debt-servicing of existing interest- bearing loans could be linked to rate of growth of economy, rate of inflation or rate of average profitability of the sector in which funds were invested. Other alternatives are debt-debt swap by providing the lender incentives such as tax holidays. Another option could be debt-equity swap.

Based on contemporary economic literature. For bankers and economists. Documented.

312:17 ASHRAF, S. M. A., "Impediments in the Islamization of Banks and Financial Institutions," New Horizon, London, (82), Dec 1998, pp. 3-5.

Reports that Islamic banks have not made much progress in mobilizing resources and floating new products. Whatever is being done in the Islamic banking is far from true Islam The financial institutions have been working on periphery of Islam. Analyses reason for this state and pleads for adopting the pristine Islam if Islamization process has to succeed and if it has to have a justification.

For general readers. Undocumented.

312:18 ASHRAF, S. M. A., Impediments in Islamization of Economy , Karachi, 1998, 10 pp. Unpublished. Presented to the Conference on Islamic Corporate Finance organized by Centre for Islamic Economics, Karachi during 21-22 November 1998.

Discusses the experience of Islamic banking in Pakistan and analyses reasons for failure of the experience.

Based on the practical experience of the author. A first had account. Undocumented.

312:19 BUCKMASTER, DAPHNE ,"Overview of Islamic Banking and Finance," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Institute of Islamic Banking and Insurance, 2000, pp. 6-10

A general overview about the history, evolution and current status of Islamic banking.

For general readers. Undocumented.

312:20 CHAPRA, M. UMER, "Islamic Banking and Finance: The Dream and the Reality", Journal of Islamic Banking and Finance, Karachi, (18:2), April 2001, pp.7-39.

Reviews the evolution and growth of Islamic banking around the globe. Critically examines the progress made so far. Replies to the criticism on Islamic banking and traces reasons for not achieving the ideal. Makes a number of proposals for proceeding further. Thinks there is little room for despondency, though more could be done in the last two decades.

For bankers, policy makers, researchers and general readers. Based on primary sources and contemporary literature. Documented.

312:21 CHAPRA, M. UMER, "Islamic Banking and Finance: The Dream and the Reality", Hamdard Islamicus, Karachi, (XXII: 4), Oct.1999, pp. 69-87.

Traces evolution of Islamic banking and finance movement around the globe. Takes stock of the criticism on Islamic banking and refutes most of it. Critically examines the experiment of Pakistan, Iran and the Sudan. Makes useful suggestions to improve the existing Islamic banks.

For general readers, economists and bankers. Based on primary sources.

312:22 CHEEMA, AFTAB AHMAD, "Islamic Development Bank: Role in Member Countries", in Mohibulhaq Sahibzada (ed.), Poverty Alleviation in Pakistan, Islamabad: Institute of Policy Studies, 1997, pp. 323-334.

Gives a brief description of the role of Islamic Development Bank Jeddah in alleviating poverty from Muslim countries. Mentions the two programs of scholarships and technical assistance for education.

For bankers and general readers. Based on IDB's published reports. Documented.

312:23 CIZAKCA, MURAT, "Islamic Economic Institutions and the Newly Emerging Muslim States", Islamic Economic Studies, Jeddah, (3:2), June 1996, pp. 81-90.

There is need for developing Islamic financial institutions in the newly emerging Muslim states in Central Asia. The Islamic banks should sponsor venture capital companies (VCC). These companies should deal with entrepreneurs on basis of mudaraba. Also makes several other proposals to make Islamic banks more efficient and more acceptable to the Shari’ah.

For Islamic bankers, policy makers and economists. Based on contemporary literature and published reports. Documented.

312:24 CLODE, MICHAEL, "Islamic Finance: Stalled at the Crossroads," New Horizon, London, (81), Nov. 98, pp. 2-3.

Expresses concern at the relative lack of imagination in devising Islamic financial products which rely on simple modes of finance. Encourages creation of a central regulatory Shari’ah board. Recommends that the range of financial products should be widened for viable competition with conventional finance.

For Islamic bankers. Based on personal experience. Undocumented.

312:25 COWAN, DAVID, "Islamic Principles and Modern Commercial Practice," in Asma Siddiqi(ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp.107-110

Islamic banking should compete with conventional banks in security of funds, return on investment and efficiency of operations. They should invest in technology, marketing and innovative financial engineering. They have a bright future.

For Islamic bankers. Based on practical experience of the author. Undocumented.

312:26 COX, STELLA, "The Role of Conventional banks in Development of Islamic Financial Products and Services," New Horizon, London, (79), Sept. 1998, pp. 3-6.

Reviews scene of Islamic banking and its inter-relationship with conventional banks. Asserts that many conventional banks are getting attracted toward Islamic banks. They are marketing Islamic financial products, offering training to Islamic bank staff and sharing results of their R & D with the Islamic banks.

For bankers and general readers. Based on author's practical experience. Documented.

312:27 DEVENISH, SIMON, "Are We Hampering the Growth of Islamic Financial Institutions by Calling Them Banks?", New Horizon, London, (65), July 1997, pp. 3-6.

Argues that the present day Islamic banks are not "banks" in the sense they are understood in the contemporary world. Their functions and operations differ considerably from the banks. Therefore, they should be termed as "financial institutions". Once it is done, the regulatory bodies would not apply same rules to them as they apply to banks. As a result, the "Islamic banks" will be relieved of some unnecessary regulatory requirements.

For bankers and economists. Based on the experience of the author. Undocumented.

312:28 DRUMMOND, JAMES, " 'Far-off' Sector Comes under Wider Scrutiny", New Horizon, London, (115), Dec 2001-Jan 2002, pp.21-22.

Points out that in the wake of post-September 11 events, the Islamic banks have come under wider scrutiny. It has revealed interesting facts. The Islamic banks suffer from poor banking practices. In effect, they are an inefficient way of doing the same thing as conventional banks do.

For Islamic bankers. Based on practical experience of the author. Undocumented.

312:29 GAFOOR, A. L. M. ABDUL, "Riba Free Commercial Banking," New Horizon, London, (112,113), Sep-Oct 2001, pp. 3-6, 3-8.

Discusses the basic concept of Islamic banking. Proposes that Islamic banking be made to conform to the Shari’ah by adopting a regime of fee for the banks for providing various services, such as managing funds. The fee would cover all expenses of the bank but would not be time related.

For researchers and academics. Based on the experience of the author. Undocumented.

312:30 GAFOOR, A. L. M. ABDUL, "Mudaraba-based Investment and Finance", New Horizon, London, (119), Jul 2001, pp. 12-16.

Proposes that instead of creating Islamic financial instruments a simpler version of Islamic banking can be adopted. The investors should pool funds in a fund to be managed by a bank. The bank should provide those funds to entrepreneurs on basis of mudaraba. The entrepreneurs can use these funds in a permissible manner. The profit and loss should be shared by all three groups in a pre-agreed arrangement. For this arrangement, no Shari’ah supervisory board is required.

For economists and bankers. Based on author's study and knowledge. Undocumented.

312:31GAMAL, MAHMOUD A. EL-, "The Survival of Islamic Banking: A Micro-evolutionary Perspective, Islamic Economic Studies, Jeddah, (5:1-2), Nov 1997-April 1998, pp. 1-22.

Presents an evolutionary game theoretic model in which PLS banks, conventional banks and banks with Islamic windows interact. In this model, an ideal PLS regime would be the most prosperous, even from a purely financial standpoint. However, the PLS banks are in jeopardy if they have to compete with conventional banks. In the face of competition with interest-based institutions, a critical mass of hybrid type is necessary not only for the survival but also efficiency of the PLS in a heterogeneous environment.

Mathematical. For economists. Based on contemporary literature. Documented.

312:32 GARI, M. ALI EL-,"Ijtehad in the Development of Islamic Banking", in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 571-574

Islamic banking being a recent phenomenon requires ijtehad in several areas. Gives examples of ijtehad for making the present practice of Islamic banking feasible. This should continue.

For jurists and bankers. Based on primary sources. Documented.

312:33 HALABI, ABDEL KARIM, "Seeds of Islamic Banking in Australia," New Horizon, London, (102), Sept. 2000, pp. 3-5.

Introduces the Islamic banking schemes started by Muslim community in Australia on cooperative basis. The introductory effort has the genesis of blooming into full-fledged Islamic banks.

Based on personal experience. Undocumented.

312:34 HAMDI, ABDUR RAHIM, Islamic Banking: Conceptual Framework and Practical Operations, Islamabad: Institute of Policy Studies, 1992, 25 pp.

An elementary essay on the concept and practice of Islamic banking.

For general readers. Based on Primary sources. Undocumented.

312:35 HAMID, M. A., Islamic Banking in Bangladesh: Expectations and Realities, 28 pp. Unpublished. Presented to the International Conference on Islamic Economics in 21st Century organized by the IIU Malaysia at Kuala Lumpur during 9-12 August, 1999.

Studies the performance of three Islamic banks in Bangladesh and evaluates their performance against the criteria of expectations and reality. Raises the difficult issue of whether the Islamic banks have in fact succeeded in eliminating riba and achieving the objective of socio-economic development. Concludes that on both counts the performance does not meet the expectations. Makes suggestions for improvement.

For economists and bankers. Based on secondary sources. Documented.

312:36 HANNAN, SHAH ABDUL, "Islamic Banking in Bangladesh: Impact and Prospects", Thoughts on Economics, Dhaka, (10:3-4), Jul-Dec 2000, pp.7-20.

Traces evolution of Islamic banks in Bangladesh. Highlights some of the important financing schemes and programs of four Islamic banks in Bangladesh. The impact of Islamic banks is that they have been able to mobilize considerable savings and provide finances for a host of economic activities. The banks have become acceptable socially.

For economists and bankers. Based on published reports of the banks.

312:37 HARON, SUDIN, "A Comparative Study of Islamic Banking Practices," Journal of King Abdulaziz University :Islamic Economics, Jeddah, (10), 1998, pp. 23-56.

Examines the practices of Islamic banks from eleven Muslim countries. The selected areas include usage of Shari’ah principles and uses and sources of funds. Disparity exists especially in areas such as number of Shari’ah principles employed and its usage in banking activities. There are also differences in the sources and uses of funds. All the banks concentrate on use of mark-up financing activities.

For economists. Based on published sources. Documented.

312:38 INAYAT, NADEEM, "Performance of Islamic Banks in Areas of Investment and Trade," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Institute of Islamic Banking and Insurance, 2000, pp. 278-283

Gives a broad overview of Islamic modes of financing. For a successful transition to Islamic financial system, it is essential that effective controls against fraudulent statements of profit and loss are devised. Besides, the government should stop deficit financing so that inflation is controlled and value of money is not depleted. Comprehensive legal changes in support of Islamic financing techniques should be introduced.

For bankers and economists. Based on contemporary literature. Undocumented.

312:39 IQBAL, MUNAWAR, "Islamic Banking", in Monzer Kahf (ed.), Lessons in Islamic Economics, Vol. 2, Jeddah: Islamic Research and Training Institute, 1998, pp. 493-506. Presented to Seminar on Teaching Islamic Economics at University Level held at Dhaka during 23 July to 5 August 1991.

The rationale of Islamic banking lies in prohibition of riba. Islamic banking is based on three approaches: buying on cash and selling on credit; profit-sharing; and rental of assets. Traces the evolution of Islamic banking from 1973.

For economists and general readers. Based on primary sources. Documented.

312:40 IQBAL, MUNAWAR, "Islamic and Conventional Banking in the Nineties: A Comparative Study", Islamic Economic Studies, Jeddah, (8:2), April, 2001, pp.1-28.

Using data for the period of 1990-98, several hypotheses and common perceptions about the practice of Islamic banking have been tested. Uses trend and ratio analysis. For this purpose, some objective 'benchmarks' for various ratios have been developed. Compares the performance of the Islamic banks with a control group of conventional banks. Concludes the Islamic banks have done fairly well during the period under study.

Based on published data. Empirical. For economists and bankers. Documented.

312:41 IQBAL, MUNAWAR, Challenges Facing Islamic Banking, Jeddah: Islamic Research and Training Institute, 1998, 95 pp.

Summarizes the concept of Islamic banking. Argues the Islamic banking faces several problems such as instruments for short-term investment, regulatory mechanism for oversight, cooperation among the Islamic financial institutions, moral hazard, relatively high emphasis on fixed return modes of finance, innovative financial instruments, lender of the last resort, uniform Shari’ah supervision, etc. Makes suggestions to overcome these problems.

For economists and bankers. Based on empirical evidence and contemporary literature. Documented.

312:42 IQBAL, ZAMIR, "Progress and Challenges of Islamic Banking," Thunderbird International Business Review, (41:4-5), July 1999, pp. 381-405.

Reviews the progress of Islamic banking and Islamic financial markets. Presents the fundamental principles of the Islamic financial system in the light of developments in modern financial theory. Identifies the challenges ahead for the development and future growth of a non-interest based financial system. Concludes that the Islamic banking has established itself as an emerging alternative to interest-based banking and is gaining roots. Research in Islamic economics and finance has further enhanced our understanding of Islam's vision of an economic and financial system. Developments in modern financial theory lead to the inference that, under certain conditions, a financial system based on Islamic principles can be more efficient than an interest-based system.

For economists and financial analysts. based on secondary Shari’ah sources and contemporary literature. Documented.

312:43 ISOBEL, LOBO, Implementation and Performance of Interest-free Banking in Pakistan, 330 pp. Unpublished. Ph.D. thesis submitted to the University of Notre Dame, 1998.

Evaluates the success of interest-free banking by examining and comparing the performance of interest-free banking in Pakistan in terms of source and uses of funds, profitability, and rates of return on deposits and finance, in the pre-nationalized commercial banks and selected foreign banks. Banking added a buy-back feature that is considered un-Islamic.

For economists and bankers. Based on published data. Documented.

312:44 KAMEL, SALEH, Development of Islamic Banking Activity: Problems and Prospects, Jeddah: Islamic Research and Training Institute, 1998, 24 pp.

Reviews the evolution of Islamic banking and thinks that it has not achieved its real objective. The Islamic bankers have mainly aped the Western banking operations and have done little innovative work. If it goes like that Islamic banking will wither away. Suggests that Islamic banks should create a mechanism of control by depositors. The legal framework of Islamic banks should also undergo a change. It should discard the form of joint stock companies and adopt the form of partnership.

An innovative paper with many original insights. For Islamic bankers and economists. Based on author's experience as owner of a large Islamic banking chain. Undocumented.

312:45 KENNEDY, CHARLES, "Judicial Activism After Zia: Toward Prohibition of Riba", in his Islamization of Laws and Economy, Islamabad: Institute of Policy Studies, 1996, pp. 127-142. Also published as "Judicial Activism and Islamization after Zia: Towards the Prohibition of Riba," in Charles H. Kennedy, ed., Pakistan: 1992 (Boulder: Westview Press, 1993), pp. 57-74.

Gives a background of judicial activism in Pakistan. Discusses the judgment given by Justice Tanzilur Rahman on riba. Concludes that this decision has created a real dilemma for the Government and has a threat for the economic system of Pakistan.

For general readers and jurists. Based on contemporary literature. Documented.

312:46 KHAN, M. FAHIM, Social Dimensions of Islamic Banks, Jeddah: Islamic Research and Training Institute, Oct. 1997, 75 pp. Mimeo.

Argues that the distinctive feature of the Islamic banks is their contribution toward social uplift of the societies and to promote justice and benevolence. Analyses the data of 9 Islamic banks which responded to the author's questionnaire and concludes that there is a strong case for inviting the attention of the Islamic banks toward their social responsibility. Proposes a framework to build this aspect of the Islamic banks.

For bankers and economists. Based on primary sources. Documented.

312:47 KHAN, M. FAHIM (ed.), Islamic Financial Institutions, Jeddah: Islamic Research and Training Institute, 1995, 176 pp.

Proceedings of a seminar held in Jakarta, Indonesia in September 1990. Consists of three conceptual papers and four case studies. The conceptual papers deal with concept and operation of Islamic banks, practical requirements for establishing an Islamic bank, and development of financial institutions in an Islamic framework. The case studies deal with al-Baraka experience in the UK, survey of contemporary experiences of Islamic banks, Faysal Islamic bank, Bahrain and an evaluation of al-Baraka group of companies.

For economists, bankers and policy makers. Based on published literature. Documented.

312:48 KHAN, MUHAMMAD AKRAM, "Islamic Banking in Pakistan: The Management of Change," New Horizon, London, (77), July 98, pp. 3-7.

Analyses reasons for failure of the program of Islamization of financial institutions in Pakistan. Argues that the whole program should be conceived in a long term scenario and modern concepts of change management should be applied to it. Proposes to create a high-powered multi-pronged Commission for Islamization of economy with a powerful organizational set up.

For policy makers. Undocumented.

312:49 KHAN, WAQAR MASUD, Islamization of Financial Sector: Role and Performance of Islamic Financial Institutions Operating in Pakistan, 1998, 19 pp. Unpublished. Presented to the Conference on Islamic Corporate Finance organized by Centre for Islamic Economics, Karachi during 21-22 November 1998.

Traces the history and evolution of Islamic banking in Pakistan. Discusses the failure and its causes. Draws lessons for the future strategy. Emphasizes that the effort should be comprehensive and determined.

For economists and bankers. Based on contemporary literature. Documented.

312:50 KHAN, ZAFAR AHMAD, Islamic Banking and its Operations, London: Islamic Institute of Banking and Insurance, 2000, 145 pp.

A practical handbook on Islamic banking, it explains the concepts and operations of Islamic banking from practitioners’ point of view. The last part gives advice on setting up and operating an Islamic bank. The annexes give model agreements on Islamic finance such as mudaraba, musharaka, ijara, etc.

For bankers and scholars of Islamic economics and finance. Based on primary sources and practical experience.

312:51 LEWIS, MERVYN K., Islamic Banking, Cheltenham: Edward Elgar, 2001, 274 pp.

Explores the Islamic law and religious and ethical principles relating to prohibition of interest and Islamic banking. Considers analytical basis of Islamic banking and finance in the light of modern theories of financial intermediation and indentifies conceptual issues to be resolved. Cites case studies of Islamic banks in Bahrain, Bangladesh, Egypt, Jordan, Malaysia, Australia, Iran, Pakistan and Sudan and defends it against unjustified criticism.

For economists, financial analysts and non-Muslim general readers. Based on primary sources and contemporary literature. Documented.

312:52 MARTIN, JEREMY, "Enhancing the Competitiveness of Islamic Banks," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 111-113

Islamic banks need to enhance their competitiveness as compared to conventional banks. It would require political stability, investment in human resource development, innovation in product development, and creation of a central registry of Islamic legal opinions on banking transactions; create systems to compensate banks for delays caused by the customers in paying back the funds. Countries can change laws to enable the banks buy properties.

For bankers. Based on practical experience. Undocumented.

312:53 MEENAI, ANWAR, "Islamic Banks and Deposit Mobilization, "in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 259-266

The Islamic banks cannot mobilize deposits like conventional banks since they cannot ensure return of the principal nor can they guarantee a predetermined return on the principal. For financing trade and industry the Islamic banks should adopt any of the following methods: equity, murabaha, salam, istisna and ijara. They will also need changes in the macroeconomic and fiscal management of the economy by government. For financing in terms of loan, the banks will not be able to charge any interest. However, the loan should be denominated in terms of a basket of currencies.

For economists and bankers. Based on contemporary literature. Documented.

312:54 MEENAI, ANWAR AHMED, "A Critical Evaluation of Murabaha Moajjala," New Horizon, London, (112), Sept 2001, pp.10-12.

Re-examines the objections raised against murabaha in light of actual practice of Islamic banking in Pakistan. Thinks these objections are valid. However, the banks can overcome these objections by adopting a more careful approach, which is strictly in conformity with the Shari’ah as well as profitable for the banks.

For bankers. Based on practical experience of the author. Undocumented.

312:55 MEENAI, ANWAR AHMED, "Islamic Banking - Where are we Going Wrong?” New Horizon, London, (72), Feb 1998, pp. 3-5.

Gives a critical account of the effort made in Pakistan to transform the financial system into the Islamic mould. Analyses the factors leading to failure and makes suggestions to redeem the situation.

For bankers and general readers. Based on contemporary literature. Undocumented.

312:56 MIRAKHOR, ABBAS, "Progress and Challenges of Islamic Banking," Review of Islamic Economics, Leicester, (4:2), 1997, pp. 1-12.

Reviews briefly the progress in developing Islamic banking and discusses the prospects and challenges. To this end, the paper provides a historical overview of developments in the theory and practice of Islamic banking. This is followed by a discussion of analytical developments and financial theory. These sections provide basis for assessment of the remaining operational challenges and prospects for Islamic banking.

For economists and bankers. Based on contemporary literature. Documented.

312:57 MIRAKHOR, ABBAS, "Hopes for the Future of Islamic Finance, New Horizon, London, (121), July 2002, pp. 5-8.

Reviews the evolution and present status of Islamic banking and finance. Argues that in this age of global instability, Islamic finance gives a hope. However, the Islamic finance should develop its own products. For this purpose, the Muslims should set up research and development institutions to be financed by endowment funds.

For general readers and economists. Based on contemporary literature. Undocumented.

312:58 NOIBI, MANSUR A., "Seeking Islamic Banking in Nigeria", New Horizon, London, (73), March 1998, pp. 10-12.

Despite the fact that the Nigerian government issued the Banks and Other Financial Institutions Decree in 1991that gave legal recognition to the profit-loss-sharing system, and provided unprecedented support for the operations of Islamic banks, six and half years later there was no Islamic bank in Nigeria.

For general readers. Based on Nigerian law. Documented.

312:59 OMAR, F. ABDULLAH al-, "Some Strategic Suggestions for Islamic Banking in 21st Century", Review of Islamic Economics, Leicester, (9), 2000, pp. 37-56.

Islamic banking has made remarkable progress in the last quarter of a century. However, in recent years the financial services have undergone a massive transformation. As it enters the 21st century, the industry is taking a new shape which poses new challenges. The authors review some of these challenges and advance some strategic suggestions to enable the Islamic banking industry keep pace with recent developments.

For economists and bankers. Based on contemporary literature. Documented.

312:60 PERVEZ, IMTIAZ AHMAD, "Liquidity Requirement of Islamic Banks," New Horizon, London, (79), Sept. 1998, pp. 7-10.

Discusses the question of liquidity of banks. Proposes that the Islamic banks should adopt the following formula for working out liquidity requirements: after including the maturity factors of running assets, reserve assets and investment assets but excluding those relevant to restricted mudaraba, minimum one-month liquidity level of an Islamic bank should be fifty percent of which reserve assets must comprise 30 percent. When there is stability in the system and factors that affect a financial institution's credibility, lower levels can also be supported. But in case of volatility even fifty percent may be inadequate. But the formula needs to be debated further.

For bankers. Based on practical experience of the author. Undocumented.

312:61 QAYUM, KHALID, "The Scope and Challenges of Islamic Banking," New Horizon, London, (78), Aug. 1998, pp. 13-16.

An elementary essay on the basic concept of Islamic banking.

For general readers. based on contemporary literature and practice. Undocumented.

312:62 RAHMAN, S.M. H., "Islamic Banking: Issues to be Addressed", Journal of Islamic Banking and Finance, Karachi, (19:1), Jan 2002, pp.25-37.

Points out inadequacies in the existing Islamic banking practice from the Shari’ah perspective. Highlights tricks of Islamic banks for concealing interest without actually changing the substance. The practices of different banks also differ from each other making the Islamic position dubious for an ordinary person. The Islamic banks have also not played any role in economic development of social sectors and agriculture or for alleviation of poverty.

For bankers and economists. Based on contemporary literature. Documented.

312:63 RAHMAN, TANZILUR, "Interest-free Banking in Pakistan", Journal of Islamic Banking and Finance, Karachi, (14:4), Oct-Dec. 1997, pp. 6-10.

Critically reviews the efforts of the Government of Pakistan in eliminating interest from the economy. Concludes that the Government has not been sincere all along in this respect.

For general readers. Undocumented.

312:64 RAHMAN, TANZILUR, "Pakistan men Bila Sud Ma'eeshat ke Masa'il aur un ka Hall", (Urdu) (Problems of interest-free economy in Pakistan and their solution) Meethaq, Lahore, (46:9), Sept 1997, pp. 31-40.

Describes the history of efforts made in Pakistan to transform the economy on interest-free basis. Enumerates Islamic modes of finance. Thinks that a gradual approach will be appropriate.

For general readers. Based on primary sources. Undocumented.

312:65 RAY, NICHOLAS D., Arab Islamic Banking and the Renewal of Islamic Law, London: Graham & Trotman, 1995, 195 pp.

Originally a PhD dissertation completed under the supervision of Professor Andrew Hess of Boston's Fletcher School of Law and Diplomacy, the book contains a review of Islamic banking concepts as well as experience. Argues that the existing literature on Islamic banking does not give a detailed financial analysis of an Islamic bank in comparison with conventional banks. It concentrates mainly, on juridical rules. Gives a critical review of Islamic financial modes as being practiced by the Islamic financial institutions. Analyses extensively balance sheets of Islamic banks. Raises several new issues relating to Islamic financial law.

For economists, jurists and bankers. Based on primary sources and published accounting reports of the Islamic banks. Documented.

312:66 ROSLY, SAIFUL AZHAR, "al-Bay' Bithaman Ajil Financing: Impacts on Islamic Banking Performance," Thunderbird International Business Review, New York, (41:4-5), July 1999, pp.461-480.

Argues that the dual banking system of Malaysia where the Islamic banking co-exists with the conventional impacts adversely on the performance of Islamic banks. The reason is that the conventional banks are more flexible in adjusting the rate of interest as compared to Islamic banks which cannot change their rate of mark-up that quickly.

For Islamic bankers, policy makers and economists. Based on primary sources. Documented.

312:67 SAMAD, ABDUS, "The Performance of Malaysian Islamic Bank during 1984-1997: An Exploratory Study, Thoughts on Economics, Dhaka, (10:1-2), Jan-June 2000, pp. 7-26.

Uses ratio-analysis for analyzing performance of Bank Islam Malaysia Berhad during 1984-1997. Concludes that the bank made significant progress on basis of return on assets and return on equity. The bank was no different as compared to conventional banks on these regards. However, the Islamic bank was more liquid as compared to conventional banks.

Analytical. Based on published information. For economists, accountants, bankers and financial analysts. Documented.

312:68 SARKAR, M. A. AWWAL, "Why Islamic Banks have So Far Failed in Adopting the Two Major Modes of Financing, Mudaraba and Musharaka?" New Horizon, London, (79), Sept. 1998, pp. 14-17.

Based on contemporary data, argues that about 80% of the business of Islamic banks is around mark-up financing. Analyzes reasons for this. Suggests that the Islamic banks must move toward mudaraba and musharaka if they have to play the intended role.

For general readers. Based on contemporary literature. Undocumented.

312:69 SCOON, FARID, "Musharaka and Mudaraba - Toward Rationalization," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 355-359

Musharaka and mudaraba have not taken root in Islamic banking. One suggestion is that the Islamic banks consciously adopt the policy of setting aside a certain percentage of their funds for investment through these modes. However, this would also require training of the banking staff in various trades other than financing.

For bankers. Based on practical experience of the author. Undocumented.

312:70 SHARIF, M. I. M, "The Development of Islamic Banking: Juridical and Practical Issues - Is the Law Equipped?" New Horizon, London, (116), Feb 2002, pp.3-6.

Discusses development of Islamic banking in Malaysia from a legal point of view. Points out some of the deficiencies in the Malaysian law on Islamic banking. Makes proposal for amending the law.



For jurists. Based on Malaysian statutes. Undocumented.

312:71 SIDDIQI, ASMA (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, 652 pp.

A collection of 111 articles on various aspects of Islamic banking. Covers twelve areas as follows: concept, evolution, monetary policy, financial markets, financial products, accounting and taxation, insurance, zakah, Shari’ah supervision, research and development, reflections and future challenges. The articles are written by scholars and practitioners of repute.

A very valuable compendium of research work on the subject. For researchers, policy makers and practitioners.

312:72 SIDDIQI, M.N., "Islamic Banks: Concept, Percept and Prospects", Review of Islamic Economics, Leicester, (9), 2000, pp. 21-35.

Originally presented to a seminar organized by the Research Centre, al-Rajhi Banking and Investment Corporation in June 1996. Updated for the present publication.

Emphasizes the role of Islamic banks as financial intermediaries. Argues that Islamic banks' entering directly into trade, industry and agriculture, etc. is not beneficial because it means leaving the role of financial intermediation for others. Islamic banks can adopt the Islamic modes of finance such as mudaraba, murabaha, salam, istisna, and ijara on the pattern of two-tier mudaraba, without banks directly entering into the real sector. Emphasizes need for innovation by the Islamic banks for enhancing liquidity, transferring risk and generating revenue.

For economists and bankers. Based on primary sources and contemporary literature. Documented.

312:73 SIDDIQUI, SHAHID HASAN, "Islamic Development Bank: Prospects and Challenges," Journal of Islamic Banking and Finance, Karachi, (16:1), Jan 1999, pp. 7-19.

A general introduction to the Islamic Development Bank Jeddah. Discusses its various financing modes and the progress made. Points out various challenges with respect to complete Islamization in an un-Islamic world.

For general readers and economists. Based on published sources. Documented.

312:74 SIDDIQUI, SHAHID HASAN, "Islamic Banking: True Modes of Financing", Journal of Islamic Banking and Finance, Karachi, (19:1), Jan 2002, pp. 11-24.

Criticizes the present state of Islamic banking in Pakistan. Considers that true modes of financing compatible with Islam are mudaraba and musharaka. Point out inadequacies of other modes of finance being practiced by the Islamic banks. Proposes design of a model Islamic bank.

For general readers. Based on contemporary literature. Documented.

312:75 SIDDIQUI, SHAHID HASAN, "Islamic Banking System - A Word of Caution", Journal of Islamic Banking and Finance, Karachi, (14:3), July' 1997, pp.7-18.

The Islamic banks exist in 54 countries but none has developed innovative products or designed schemes for the common man. Some of the Islamic banks were facing problem of excess liquidity. Recommends measures for success of Islamic banking.

For general reader. Based on contemporary literature. Documented.

312:76 SIDDIQUI, SHAHID HASAN, "Islamic Banking: True Modes of Financing," Journal of islamic Banking and Finance, Karachi, (16:4), Oct. 1999, pp. 7-15.

Criticizes the present practice of Islamic banking because of various subterfuges which it has adopted. Proposes a model Islamic banking on ideal islamic lines.

For general readers. Based on practical experience of the author. Undocumented.

312:77 SIDDIQUI, SHAHID HASAN, "Islamization of Banking in Pakistan", Journal of Islamic Banking and Finance, Karachi, (14:4), Oct-Dec 1997, pp. 11-22.

Thinks that the political will to eliminate interest from the economy in Pakistan has been weak all along. The system of banking after the so-called Islamization has become more exploitative. The Government should regulate the banks and protect the interest of savers.

For general readers. Based on published statistics. Undocumented.

312:78 TURKI, MUSTAFA M., "Islamic Banking: A Systems Perspective", New Horizon, London, (62), April 1997, pp.3-5.

Emphasizes the need for the introduction of computerized systems in Islamic banks.

For Islamic bankers. Based on the experience of the author. Undocumented.

312:79 UTHMANI, M.TAQI, "Effective Policies, Moral Values: Pre-Requisites for Islamic Banking, New Horizon, London, (60), Feb.1997, pp.8-9.

An interview of the author. Compares Islamic banking in Pakistan and Malaysia and makes proposals for remedying the situation in Pakistan.

For general readers. Based on contemporary and primary sources. Documented.

312:80 UZAIR, MOHAMMAD, Interest-free Banking, Karachi: Royal Book Company, 2001, 222 pp.

A collection of thirteen papers of the author on various aspects of interest-free banking. Also includes author's earliest paper "interest-less banking" written in 1955.

For bankers, researchers and general readers. Based on primary sources. Documented.

312:81 WILSON, RODNEY, "Parallel between Islamic and Ethical Banking," New Horizon, London, (105), Dec 200 and Jan 2001, pp. 10-13,17.

Compares ethical banking with Islamic banking and draws several parallels. Cites the case of Cooperative Bank of UK as an example of ethical bank. Suggests improvements in dissemination of information, marketing and governance of Islamic banks.

For bankers and economists. Based on contemporary literature. Undocumented.

312:82 WILSON, RODNEY, Challenges and Opportunities for Islamic Banking and Finance in the West: The UK Experience," Islamic Economic Studies, Jeddah, (7:1&2) Oct 1999-April 2000, pp.35-60.

Islamic finance has become increasingly significant in financial centers in the West, notably in London, despite regulatory hurdles. It reflects demand from Muslim residents and non-resident clients for Islamic deposit facilities and fund management services which involves Shari’ah compliance. At the same time Islamic financing methods are viewed as a challenge and opportunity by industry. In client driven societies there is a willingness by those in financial services to listen and learn from the

experience of Islamic banks, which in the longer run may bring a major breakthrough for Islamic banking at the retail level in the West.

Descriptive. For economist and bankers. Based on contemporary literature and reports. Documented.

312:83 WRIGHT JR., J. W. ,"Muslim Attitudes Toward Islamic Finance: A Review Lecture and an American Survey", in Ehsan Ahmed (ed.), Role of Private and Public sectors in Economic development in an Islamic Perspective, Herndon, VA: International Institute of Islamic Thought, 1996, pp.123-134

Postulates that the Islamic banks can fill the gap of Islamic finance but that American Muslims' attitudes toward Islamic finance must be favorable for these ventures.

For bankers. Based on field survey. Documented.

312:84 YAQUBY, NIZAM S., "Shari’ah Requirements for Conventional Banks Engaged in Islamic Finance", New Horizon, London, (119), July 2001, pp. 8-10.

Discusses the requirements that a conventional bank must fulfill if it wants to start Islamic banking. The requirements are: complete segregation of funds; existence of a Shari’ah supervisory board; management committed to Islamic financial concepts; safeguarding of Muslim investors' funds from negligence, trespass and fraud; and compliance with AAOIFI standards of accounting and auditing.

For practitioners. Based on experience of the author. Undocumented.

312:85 ZAID, OMAR ABDULLAH, Development and Challenges of Islamic Banking and Investment and Its Opportunities An Australian Experience, 6 pp. Unpublished. Presented to the World Islamic Banking and Investment Summit organized by IBC Asia Ltd. at Kuala Lumpur during 23-24, September 1996.

A brief introduction to Muslim Community Cooperative Australia an organization involved in Islamic housing finance on a voluntary basis.

For general readers. Based on the published reports of the organization. Documented.

313 Riba-free financial systems and financial markets


313:1 ADREES, MOHAMMD, Corporate Finance: Musharaka Option, Unpublished. Presented to the Conference on Islamic Corporate Finance organized by Centre for Islamic Economics, Karachi during 21-22 November 1998. 6pp.

Discusses the main features of a financial instrument designed by a consulting company using the musharaka option as a mode of finance. Argues that such instruments can be developed provided there is a will.

Based on the practical experience of the author. For businessmen and bankers. Undocumented.

313:2 AHMAD, AUSAF, Towards an Islamic Financial Market: A Study of Islamic Banking and Finance in Malaysia, Jeddah: Islamic Research and Training Institute, 1997, 81 pp.

After giving a general introduction to Islamic financial market and financial instruments, describes evolution of Islamic banking in Malaysia. Discusses the salient features of the Islamic financial market as it exists in Malaysia.

For bankers and economists. Based on primary Shari’ah sources and published data. Documented.

313:3 AHMED, OSMAN BABIKIR, Islamic Financial Instruments to Manage Short-term Excess Liquidity, Jeddah: Islamic Research and Training Institute, 1997, 100 pp.

Discusses conventional Islamic financial instruments and criticizes them as most of them have an element of interest. Proposes some modifications in these instruments to bring them into the fold of the Shari’ah. Also proposes some new financial instruments which the Islamic financial institutions can adopt.

For bankers and economists. Based on contemporary literature and Islamic primary sources.

313:4 ARIFF, MOHAMED, Developing a System of Financial Instruments, Jeddah: Islamic Research and Training Institute, 1990, 284 pp.

Proceedings of a seminar held in Kuala Lumpur during 28 April to 5 May 1986 under the auspices of Islamic Research and Training Institute, Jeddah and the Ministry of Finance of Malaysia.

Contains six papers and five case studies. The papers relate to financial intermediation, financial instruments, capital market operations, resourcemobilization and mechanics of financial markets under Shari’ah. The cases pertain to Egypt, Sudan, Malaysia, Bangladesh and Pakistan.

Most of the papers are based on primary sources. The cases are based on published data.

313:5 ASKARI, HOSSEIN, "Opportunities in Emerging Islamic Financial Markets," Banca Nazionale Del Lavoro Quarterly Review , (194), Sept 1995, pp. 255-282.

The Islamic financial markets are merging but as yet there is not much progress in the development of financial instruments and Islamic capital market. Proposes a number of new financial instruments which are compatible with the Shari’ah but about which the general perceptions are that they are not. For example, forward contracts can be framed within the framework of bai’ al-salam. Similarly, commodity-linked notes can be issued. There is a possibility of using commodity price swaps within the Islamic parameters.

For financial analysts. Based on secondary Shari’ah sources. Documented.

313:6 BACHA, O. ISMATH, "Derivative Instruments and Islamic Finance: Some For Reconsideration", International Journal of Islamic Financial Services, Online, (1:1), April 1999, pp 9-25.

Examines contemporary derivative instruments and the Islamic viewpoint of the new instruments. The validity and permissibility of these instruments appears to vary by scholar. The Islamic scholars have examined derivatives within narrow confines of contractual arrangements and thereby miss the broader picture of why instruments like futures and options are needed in modern business environments. Analyzes forwards, futures and options, their unique benefits and makes a case for their need. Islamic financial instruments with derivative-like features such as bai' al-salam and bai' al-istijrar are also examined. Suggests mechanism to Islamize futures and options trading.

An original paper with several insights. For financial analysts and jurists. Based on primary sources. Documented.

313:7 CIZAKCA, MURAT, "Islamic Project Financing Conference", New Horizon, London, (63), May 1997, pp. 5-8.

Gives a summary review of papers presented in a conference held in Kuala Lumpur during March 10-11, 1997. While doing so makes several pertinent and interesting comments.

For Islamic bankers and economists. Undocumented.

313:8 COX, STELLA, "Issues of Islamic Equity Investment", New Horizon, London, (69), Nov. 1997, pp. 6-9.

Points toward recent and rapid development of Islamic equity products. Concludes there is a need for concerted efforts in expanding solutions to seemingly insurmountable problems that have previously hindered the innovation of equity investment.

For Islamic bankers and financiers. Based on practical experience. Undocumented.

313:9 DARRAT, ALI F., "On the Design of Interest-free Instruments," Journal of King Abdulaziz University: Islamic Economics, Jeddah (8), 1996, pp. 53-62.

Presents a theoretical model of an alternative fund-raising scheme for Muslim governments which are restricted by religious regulations against fixed-interest debt- financing techniques. The proposed instrument is developed using the principle of partial equilibrium theory for risk-neutral as well as risk-averse investors. Concludes on efficiency of the financial instrument proposed.

For economists. Mathematical. Based on contemporary.

313:10 FREELAND, RICHARD, "The Role of London Law Firms in Islamic Finance," New Horizon, London, (104), Nov. 2000, pp5-6.

Gives a brief introduction to the role of leading law firms based in London in dealing with legal issues relating to Islamic finance.

For general readers. Based on published information on law firms. Undocumented.

313:11 FUGARD, ROBERT, "Legal Issues of Islamic Finance", New Horizon, London, (66), August 1997, pp. 7-11.

Reviews several legal issues relating to financing through murabaha and ijara and interest-based financing and points out the additional risks involved in Islamic financing.

For bankers and businessmen. Based on contemporary experience. Undocumented.

313:12 GULAID, MAHMOUD A., Financing Agriculture Through Islamic Modes and Instruments: Practical Scenarios and Applicability, Jeddah: Islamic Research and Training Institute, 1995, 93 pp.

Examines functional and operational activities of sector. Describes contemporary modes of finance to rural sector by Islamic banks. Assesses the possibility of financing through Islamic financial instruments. Makes recommendations in the closing section.

For Islamic banks and economists. Analytical. Based on contemporary literature and primary sources. Documented.

313:13 HALIM, ABDUL ,"Islamic Equity Markets," in Asma Siddiqi(ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 238-242

Gives a brief introduction to equity financing in Islam and need of Islamic equity markets. Describes the development of Islamic equity market in Malaysia.

For bankers and economists. Based on practical experience of the author. Undocumented.

313:14 HAQUE, NADEEMUL, "The Design of Instruments for Government Finance in an Islamic Economy," Islamic Economic Studies, Jeddah, (6:2), May 1999, pp. 27-43.

Presents a viable approach for designing an instrument of government finance in an Islamic economy where conventional transaction-based onan ex-ante promise of a risk-free rate of return are forbidden. Resources to finance government infrastructural and development projects can be mobilized through the issuance of national participation paper (NPP) and this instrument can also serve as an instrument of monetary management. Various conceptual issues underpinning the introduction of an instrument and methods of calculating a corresponding rate of return are discussed. In this approach has been accepted in Iran.

For financial analysts and economists. Based on secondary sources and contemporary literature. Documented.

313:15 HAROON, YOUSAF SH., "Islamic Stock Market Indices," Pakistan and Gulf Economist, Karachi, 6 Sept. 1999, pp. 28-30.

A comprehensive introduction to Dow Jones Islamic Market Indices.

For financial analysts and general readers. Based on secondary sources. Documented.

313:16 HUME, JAMES, "Tracking the Performance of Islamic Equities," New Horizon, London, (84), Feb. 1999, pp. 15-16.

Stresses the need for developing and publishing an acceptable index of Islamic equities around the world stock exchanges. This should be done by an existing organization with proven and widely accepted credibility.

For financiers and economists. based on contemporary literature. Undocumented.

313:17 HUSAIN, SYED MOHAMMAD, Shari’ah Compliant Contemporary Corporate Finance: A Model, Karachi , 1998, 9 pp. Unpublished. Presented to the Conference on Islamic Corporate Finance organized by Centre for Islamic Economics, Karachi during 21-22 November 1998.

Gives a case study of the development of a financial instrument for raising finance for a textile industrial unit. The author had been a consultant for the development of this instrument. Argues that it is quite feasible to design such instruments which are in conformity with the Shari’ah, provided there is a will.

Based on the practical experience of the author. For businessmen and bankers. Undocumented.

313:18 HUSIN, AWANG ADEK, The Islamic Financial Landscape in Malaysia, 13 pp. Unpublished. Presented to the International Conference on IslamicEconomics in the 21t Century organized by the International Islamic University Malaysia, Kuala Lumpur during 9-12 August, 1999.

Reviews the Islamic financial landscape in Malaysia. Describes various approaches undertaken by the Malaysian authorities for developing an Islamic banking system. Identifies issues and future directions in implementation of Islamic banking in Malaysia.

Based on practical experience and published information. Undocumented.

313:19 IQBAL, ZAMIR, "Scope of Asset Securitization", Journal of Islamic Banking and Finance, Karachi, (14:4), Oct-Dec 1997, pp. 35-41.

Introduces the concept of securitization and shows how it is an increasing mode of investment. Suggests a mechanism for adopting securitization in the framework of Islamic finance.

An original paper. For economists and bankers. Based on contemporary literature. Documented.

313:20 IQBAL, ZAMIR, Islamic Financial Systems. Unpublished. Mimeo. 1997, pp. 9.

A general introduction to the Islamic financial system and financial markets. Highlights the present position of Islamic funds and capital markets. Spotlights the challenges being faced by Islamic financial markets.

A good introduction for western readers. Based on contemporary literature. Documented.

313:21 IQBAL, ZAMIR, "Islamic Financial Systems", Finance and Development, Washington, (34:2), June 1997, pp. 42-45.

Asserts that Islamic finance is emerging as a rapidly growing part of financial sector in the Islamic world. It is not restricted to Islamic countries, but is spreading wherever there is a sizeable Muslim community. Introduces Islamic modes of finance. Identifies issues and challenges and indicates future direction of Islamic finance.

For economists and bankers. Based on contemporary literature. Undocumented.

313:22 IQBAL, ZAMIR, "Financial Innovations in Islamic Banking", Journal of Islamic Banking and Finance, Karachi, (15:2), April 1998, pp. 7-17.

Financial innovations -securitizations and derivatives - play a vital role in global financial markets. Availability of marketable and liquidity-enhancing instruments expands opportunities for investors and financial institutions. The future of Islamic banks lies in resorting to these innovations. They must consider all options. Contrary to common belief, the Islamic financial system provides a flexible scenario to adapt to various Western financial innovations.

For bankers and economists. Based on contemporary literature. Documented.

313:23 IQBAL, ZAMIR, "The Benchmark Issue in the Islamic Financial System", American Journal of Islamic Social sciences, Herndon, VA, (16:2), summer 1999, pp. 45-54.

In absence of a well-developed benchmark that would facilitate macro and micro level decision-making with regard to cost of capital and opportunity cost of investments in comparative projects of similar risk, Islamic financial institutions are relying on LIBOR for lending decisions. This is unacceptable from Islamic point of view. Proposes a benchmark based on Tobin's q theory of investment. Maintains that unlike existing benchmarks which are limited to macro-level applications only q-based benchmark would be useful for firms and banks (micro-level) as well as governments and institutions (macro-planning).

Mathematical. For economists. Based on contemporary literature. Documented.

313:24 IQBAL, ZAMIR, "Financial Engineering in Islamic Finance," Thunderbird International Business Review (41:4-5), July 1999, pp. 541-560.

Depicts the scenario of Islamic finance. Argues that Islamic financial rules permit new financial instruments. For this purpose, the contemporary discipline of financial engineering can be used. However, care must be taken that no compromise is made on basic principles. Gives examples of commodity swap securities that can be developed within the Islamic framework.

For financial analysts. Based on contemporary literature and secondary Islamic sources. Documented.

313:25 ISMAIL, A. HALIM, Islamic Equity Markets", New Horizon, London, (68), Oct. 1997, pp. 9-11.

Introduces the concept of equity and debt in Islam. Explains the manner in which Bank Islam Malaysia (BIMB) operates. Also highlights the activities of BIMB Securities, which is a subsidiary of BIMB. Discusses salient features of some financial instruments being managed by the BIMB Securities.

For bankers and economists. Based on practical experience of the author.

313:26 KAMALI, M. HASHIM, "The Shari’ah Perspective on Futures," in Asma Siddiqi(ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 483-489

Argues that the contemporary understanding of futures trading by the Shari’ah scholars and their ruling to prohibit it requires re-consideration. The futures trading does not involve riba, gambling or any other type of exploitation. The futures trading should be considered lawful. However, we should develop sufficient safeguards against excessive speculation or any other means of misuse.

For jurists. Based on primary sources. Undocumented.

313:27 KHAN, M. FAHIM, Islamic Capital Market, 28 pp. Unpublished. presented to the Islamic Banking Conference organized by the Islamic Society of North America during July 17-18, 1998.

Identifies the need for developing a capital market for those Islamic investors who like to have a fixed income. Proposes a number of financial instruments carrying fixed income. These instruments revolve around the concept of securitizing income from ijara, murabaha and other similar Islamic contracts. Makes several proposals for institutional development like Islamic Investment Opportunities Information Centre, Islamic Corporate Trust, Islamic Entrepreneurs and Capital Development Centre, Research and Training Centre, etc.

For economists and bankers. based on primary sources. Documented.

313:28 KHAN, M. FAHIM, Islamic Futures and Their Markets, Jeddah: Islamic Research and Training Institute, 2000, 76 pp.

Critically reviews operations of futures market in the contemporary Western world. Points out that the Islamic contracts of bai' salam, bai' istisna' and bai' ju'ala have the potential to accommodate development of an Islamic futures market. Proposes a mechanism to develop such a market and argues that it will be free from the shortcomings of the Western style futures market.

For financial experts. Based on primary sources and contemporary literature. Documented.

313:29 LAWAI, HUSAIN, Packaging, Pricing and Distribution of Islamic Financing Products in the Conventional Banking Environment and Risk Factor Considerations, 18 pp. Unpublished. Presented to the World Islamic Banking, Finance and Investments Summit organized by IBC Asia Ltd. at Kuala Lumpur during 23-24 September 1996.

Argues for a special need to redesign some Islamic financing products to accommodate securitization. The IFIs should be able to offer total solutions through financial packaging of their products tailored to the needs of customers. The products should not only be meant for Muslims but equally attractive to all business community. The world-wide deregulation and privatization has opened up new opportunities for cross-border financing and IFIs can play an active role. The IFIs should reappraise themselves in light of prevailing market to exploit the available opportunities. Contains five case studies also.

For bankers. Based on practical experience of the author. Documented.

313:30 MALIK, M. HAFEEZ, Financing in Islam, Islamabad: Author: 670,St. 92, G/9/4, Islamabad, 1999, 293 pp.

A gives a general description of various Islamic financing techniques adopted by the financial institutions. Summarizes their practical application and procedures.

For students and practitioners. based on secondary sources. Undocumented.

313:31 OBAIDULLAH, MOHAMMED, "Istijrar: A Product of Islamic Financial", New Horizon, London, (68), Oct.1997, pp. 3-8.

Discusses main features of a new financial instrument introduced by the Muslim Commercial Bank of Pakistan. It is a contract which involves financing by the bank over an extended period for procurement of goods and supplies. The re-sale price of the goods is not fixed beforehand. Instead, it is determined in light of market price over the period of contract. The final settlement price is taken as average of market prices during the contract subject to the condition that both the bank and the client will have the option to opt for a pre-determined price if the market price exceeds a lower or an upper limit. In case of a party exercising the option, the opted price will become basis of resale and calculation of profit. Also discusses the factors which will determine the behavior of the two parties.

A highly useful paper. For economists and bankers. Based on contemporary literature. Undocumented.

313:32 OBAIDULLAH, MOHAMMED, "Capital Adequacy Norms for Islamic Financial Institutions", New Horizon, London, (70-71), Dec 1997/Jan 1998, pp. 15-17.

Islamic banks and financial institutions are exposed to various forms of risks. However, unlike conventional banks, they can pass on risk to their depositors, namely, the holders of unrestricted investment accounts. Like capital, unrestricted investment accounts can absorb potential losses on assets of Islamic banks. This is a unique feature of Islamic banks. Hence, there is a strong case for inclusion of unrestricted investment accounts in capital adequacy measures. These measures computed for Islamic financial institutions are, in general, found to be extremely high, much higher than the minimum required as per Basle Committee norms. The robustness of Islamic financial institutions further improves as they do not indulge in speculative transactions, like investment in options and derivatives.

For economists and bankers. Based on contemporary literature. Documented.

313:33 OBAIDULLAH, MOHAMMED, "Financial Options in Islamic Contracts: Potential Tools for Risk Management", Journal of King Abdulaziz University: Islamic Economics, Jeddah, (11), 1999, pp. 3-27.

Attempts to undertake an Islamic assessment of financial contracting in global currency markets. Examines some basic currency-related contracts in the mainstream finance in light of Islamic norms. Highlights views of some Islamic scholars on various conventional as well as Shari’ah-based contractual mechanisms. In cases where there is some degree of divergence of views, the study examines the nature and sources of disagreement as also implications and economic significance of the arguments. In view of the overwhelming importance of currency risk management in volatile markets, the study undertakes an assessment of the various financial contracts as risk management tools.

For financial analysts and economists. Based on primary sources. Documented.

313:34 OBAIDULLAH, MOHAMMAD, "Investment Products for Indian Muslims", New Horizon, London, (73), March 1998, pp. 6-9.

Examines some of the mutual funds and securities floated in India which appear to have an Islamic character. Concludes that none of the investment products is fully in line with the Shari’ah. However, some of them have features which are acceptable to Shari’ah and nearer to what Islamic finance will prescribe.

For general readers. Based on the Indian law and practice. Documented.

313:35 PERVAIZ, IMTIAZ AHMAD, Securitization in Islamic Corporate Finance, Karachi, 1998, pp. 23. Unpublished. Presented to the Conference on Islamic Corporate Finance organized by Centre for Islamic Economics, Karachi during 21-22 November 1998.

Discusses technical details of the process of securitization for developing Islamic financial instruments.

For bankers and investment brokers firms. Based on contemporary literature. Undocumented.

313:36 ROSLY, SAIFUL AZHAR, "Islamic Convertible Bonds", in Proceedings of the Third Harvard University Forum on Islamic Finance, Cambridge: Harvard Islamic Finance Information Program, 1999, 179-189 pp.

Provides a critical overview of Islamic debt securities in Malaysia and ways to make them more attractive to global Islamic funds. Attempts to design an Islamic convertible bond. Explains strengths and advantages of the proposed bonds.

For bankers and investment brokers firms. Based on contemporary literature. Documented.

313:37 ROSLY, SAIFUL AZHAR, "The Application of Bay' al-Inah and Bay' al-Dayn in Malaysian Islamic Bonds: An Islamic Analysis", International Journal of Islamic Financial Services, Online, (1:2), July 1999, pp.1-21.

Financial contracts involving use of bai' al-inah and bai' al-dayn have been extensively used in design of Malaysian Islamic bonds. Argues that both these mechanisms have been found unacceptable by the majority of Islamic scholars and proposes the use of financing based on muqarada and musharaka principles as genuine alternatives to interest-bearing financial instruments.

For financial analysts and economists. Based on contemporary literature. Documented.

313:38 SALAMA, ABIDIN A., "Financial Instruments and Liquidity Management", New Horizon, London, (119), July 2001, pp. 3-7.

Addresses the question of mismatch of maturities faced by the Islamic financial institutions. They do not have assets for very short periods such as one day, one week or one month. Perforce, they have to face the problem of liquidity surplus. Makes a number of suggestions for handling the problem.

For practitioners. Based on the practical experience of the author. Undocumented.

313:39 SALEEM, M. AHSAN, Short Term Islamic Corporate Financing: a Case Study, Karachi, 1998, 7 pp. Unpublished. Presented to the Conference on Islamic Corporate Finance, organized by Centre for Islamic Economics, Karachi during 21-22 November 1998.

Discusses salient features of a financial instrument developed by a firm of chartered accountants for the author's company for raising finance on basis of Shari’ah-approved mechanism.

Based on practical experience of the author. For businessmen and bankers. Undocumented.

313:40 SIDDIQI, ADEEL, "De-linking Islamic Finance from LIBOR",Islamic Banker, London, Oct.1995, pp. 2-3.

Argues that the Islamic banks must de-link themselves from such benchmarks as LIBOR and develop their own benchmark, based on an interest-free framework.

For bankers. Undocumented.

313:41 TAHIR, SAYYID, et.el., IIIE's Blueprint of Islamic Financial System , Islamabad: International Institute of Islamic Economics, 1999, 148 pp.

A comprehensive report on the Islamic financial system. Covers Islamic banking, government transactions, central banking, money market, and legal aspects of the Islamic financial system. Propose a number of new Islamic financial instruments. Introduces an innovative definition of riba. Consider difference between cash and credit prices as legitimate. Also, allow discounting bills of exchange and forward trading of foreign exchange. Make a comprehensive statement for practical implementation of the system. Propose a time frame-frame but do not agree with gradualism.

For economists, bankers financial analysts and policy makers. Based on primary sources. Documented.

313:42 THOMAS, RICHARD, "London Interbank Offered Rate and Murabaha - Strange Bedfellows?" Islamic Banker, London, Oct. 1995, pp. 1-3

Argues that in absence of any other benchmark, Islamic banks can use LIBOR as an acceptable benchmark for their transactions in murabaha.

For bankers. Undocumented.

313:43 UTHMANI, M. TAQI, "Futures, Options, Swaps, and Equity Investment," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 490-493

Argues that the sales contract involving forward or future sales, options contracts and swaps are unlawful. The investment should be based on equity and dividend should be based on actual results of the business. Predetermined rate of dividend is unlawful.

For general readers. Based on primary sources. Undocumented.

313:44 UTHMANI, M.TAQI, "How Far are Financial Contracts Permissible Islamically?" Hamdard Islamicus, Karachi, (XX: 2), April 1997, pp.91-93.

Gives juridical opinion on various forms of financial contracts such as sale and purchase of company shares, swaps, options, futures and direct investment in equities.

For general readers and jurists. Based on primary sources. Undocumented.

313:45 VOGEL, FRANK E., Islamic Law and Finance: Religion, Risk and Return, The Hague: Kluwer Law International, 1998, 330 pp

Discusses the law of Islamic finance as in the primary sources and as practiced by the Islamic financial institutions. The subjects covered are riba, law of contract, mudaraba, murabaha, musharaka, ijara, salam, and istisna'. Applies the theory of modern finance to the Islamic law. Highlights the problems that the Islamic law has yet to resolve if it has to provide a well-functioning basis for Islamic financial institutions in the present day world. Of special significance are problems relating to forwards, futures, options, swaps and various derivatives. Make highly valuable suggestions for innovative financial re-engineering.

An analytical source book. For economists, financial analysts, and jurists. Based on primary sources. Documented.

313:46 WILSON, RODNEY, Islamic Fund Management, 19 pp. Unpublished. Presented to the International Conference on Islamic Economics in 21st Century organized by the International Islamic University Malaysia, Kuala Lumpur during 9-12 August, 1999.

Based on practical experience of fund management in Jeddah and London, discusses the fund management in the Shari’ah framework. There are two approaches to fund management: (i) how to screen equity investments in stock markets throughout the world to identify companies which are potentially acceptable to Islamic investors; (ii) stresses the importance of investing in emerging stock markets of Muslim countries, even where companies themselves are not necessarily specifically run in accordance with the Shari’ah. In both cases, a degree of compromise and pragmatism is involved as none represents an ideal Islamic solution. The paper reviews both approaches in the light of experience in Europe and Gulf.

For bankers and fund managers. Based on published information. Documented.

314 Riba-free stock exchange and commodity exchange


314:1 AMINE, M.B.M.al-, "'Arbun, Risk Management and Options," Journal of Islamic Banking and Finance, Karachi, (17:4), Oct. 2000, pp. 7-32.

The hadith sources on the legitimacy or illegitimacy of bai' al-urbun are confusing and unreliable. On rational basis, the realities of market place compel us to accept it as a reasonable form of transaction. Examines the role of bai’ al-urbun in murabaha, salam and istisna. Based on this discussion, examines the application of bai' al-urbun in relation to options purchase and sale. Concludes that bai' al-urbun can be used a valid form of transaction in both a call option as well as put option.

A stimulating paper. For economists and financial analysts. Based on primary sources. Documented.

314:2 ANWAR, MUHAMMAD, "An Islamic Perspective on Capital Markets and 'Islamic' Securities in Malaysia", The Pakistan Development Review, Islamabad, (34:4), Winter 1995, pp. 865-878.

After a general description of the main features of capital and stock markets takes up the analysis of the so-called 'Islamic' securities introduced recently in Malaysia. Concludes that these securities contain elements of interest and cannot be termed as 'Islamic'.

For economists. Based on contemporary literature. Documented.

314:3 AZIZ, HASSANUDDEEN, "Malpractice of Insider Trading: An Economic, Legal and Shari’ah Response", Business Law Review, (20:11), Nov. 1999, pp. 261-264.

Insider trading leads to destabilization. Besides legal and economic implications, Shari’ah also condemns such behavior on basis of various ethical rules.

For general readers. Based on primary sources. Documented.

314:4 DIN, SEIF I. TAG EL-, "The Stock Exchange from an Islamic Perspective," Journal of King Abdulaziz University: Islamic Economics, Jeddah, (8), 1996, pp. 31-50.

Discusses normative rules governing exchange in an Islamic stock market and evaluates free market capitalist economy model from an Islamic perspective. Concludes that efficiency in financial markets cannot be ensured by leaving it free and unregulated. It is necessary to reinforce the Islamic rules. Indicates some regulatory measures from the Islamic point of view.

For economists. Based on primary sources and contemporary literature. Documented.

314:5 KHAN, TARIQULLAH, "Islamic Quasi Equity (Debt) Instruments and the Challenge of Balance Sheet Hedging: An Exploratory Analysis," Islamic Economic Studies, Jeddah, (7:1-2), Oct 1999-April 2000, pp. 1-34.

Debt creation by deferring payment on sales is a predominant form of financing, and is allowed by the Shari’ah. However, sale of debts through conventional procedures is prohibited in Islamic finance. Explores Islamic quasi equity (debt) instruments and argues that such instruments can empower the Islamic financial system to manage important risks and enhance the provision of long-term funds. The premises discussed are based on sale of debts against real assets, which facilitates embedded options and convertible Islamic financial instruments.

For Islamic bankers and financial analysts. Based on contemporary literature and primary sources of Islamic finance.

314:6 LAKHANI, M. YASIN, Development of Secondary Market for Islamic Instruments, 1998, 8 pp. Unpublished. Presented to the Conference on Islamic Corporate Finance organized by Centre for Islamic Economics, Karachi during 21-22 November 1998.

Describes functioning of the Karachi Stock Exchange. Refers to the Term Finance Certificates and leasing instruments on the Karachi Stock Exchange.

For general readers. Undocumented.

314:7 MANNAN, M. A., Understanding Islamic Finance: A Study of the Securities Market in an Islamic Framework, Jeddah: Islamic Research and Training Institute, 1993, 115 pp.

Studies the nature and characteristics of various securities in light of the Shari’ah. Argues that the framework of Islamic securities market can be developed on basis of mudaraba, musharaka, and murabaha concepts. Proposes a set of financial instruments in the Shari’ah framework. Highlights some of the nagging and unsolved issues in the area. Closes with a set of suggestions for policy makers.

For economists, financiers and policy makers. Based on secondary sources. Documented.

314:8 OBAIDULLAH, MOHAMMED, "Ethical Options in Islamic Finance," New Horizon, London, (78), Aug.1998, pp. 3-12.

Identifies the norms of Islamic ethics generally applicable to financial contracts and undertakes an assessment of various option-based financial contracts that are created and transacted in the conventional markets in light of these norms. Examines the notion of options (khiyar) forming part of the theory of contracting in Islamic jurisprudence and discusses possibility of designing financial instruments incorporating such options. Discusses some real life examples of options in use by Islamic financial institutions.

For financial experts, bankers and jurists. Based on primary sources. Undocumented.

314:9 OBAIDULLAH, MUHAMMAD, "Islamic Contracts for Currency Exchange," in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 165-174

In exchange of currencies, if one side defers payment, it would involve riba only in the following situations: when gold or silver function as thaman; when exchange involves paper currency belonging to the same country; when the exchange involves currencies of different countries following a fixed exchange rate system. In case the exchange rate is fluctuating, deferring one currency would not involve riba, as the fluctuation in the exchange rate introduces an element of risk that takes the transaction from out of the genus of riba. If both the currencies are deferred to a future date, it could involve gharar. However, Islamic scholars need to devise a system to hedge against the risk due to fluctuation in the exchange rates.

Based on primary sources of Islam as well contemporary theory of finance. For economists. Undocumented.

314:10 OBAIDULLAH, MOHAMMED, "Islamization and Stock Exchange Efficiency", New Horizon, London, (65), July 1997, pp.9-12.

Discusses the factors responsible for efficiency of stock exchange. Also recognizes positive role of speculation but emphasizes need for controlling it. Gives several suggestions to discourage unwholesome speculation in a stock exchange.

For economists and financiers. Based on contemporary literature. Undocumented.

314:11 OBAIDULLAH, MOHAMMED, "Islamic Options – Engineering Risk Management Solutions," New Horizon, London, (75) May 1998, pp. 6-9

Discusses legality of options on the stock exchange. Considers that some forms of options are legal and some others can be made legal with slight modifications. Points out the un-Islamic features of some of the options contracts.

For economists and financiers .Based on primary sources. Documented.

314:12 OBAIDULLAH, MOHAMMED, "Financial Engineering with Islamic Options," Islamic Economic Studies, Jeddah, (6:1), Nov.'98, 73-105.

Investigates into the permissibility of conventional options in light of various fiqh issues. Concludes that options as independent contracts may not be suitable forms of hedging risk as they are not compatible with the Shari’ah. The problem of managing risk can be tackled by designing instruments in the Islamic framework of khiyar shart. Shows how a specific instrument can be designed by combining khiyar shart with bai' al-istijrar.

For economists and financial analysts. Based on primary sources. Documented.

314:13 SALAMON, HUSSIN, "Speculation in the Stock Market from an Islamic Perspective", Review of Islamic Economics, Leicester, (9), 2000, pp.103-126.

Examines the Islamicity of speculation on stock exchange. Suggests how we can establish an alternative for speculative transactions.

For economists. Based on primary sources and contemporary literature. Documented.

314:14 SALAMON, HUSSIN, The Problem of Speculation in Stock Market from Islamic Perspective: Investment as an Alternative, 1998, 50 pp. Unpublished. Presented to the First International Conference on Islamic Economic Development Management organized by the Universiti Sains Malaysia during 8-10 December 1998.

Raises the question: Are the Muslims allowed to participate in stock market transactions which everywhere these days? If not, what is the alternative Islam offers? Argues that speculation is akin to gambling and hence not permitted in Islam. The Muslims must invest the money through stock market but should not gamble. The government should regulate the stock market in such a manner that it becomes impossible to speculate.

For economists and financiers. Based on primary sources of Islam. Documented.

314:15 SUWAILEM, SAMI AL-, "Review of Hussein Kotby's 'Financial Engineering for Islamic Banks,'” Journal of King Abdulaziz University: Islamic Economics, Jeddah, (8), 1996, pp. 65-73.

Reviews Kotby's book. Concludes that Kotby's position on the permissibility of forward and futures is doubtful from Islamic point of view. Also considers that the options trading is not permissible from the Islamic point of view.

An original paper. Based on primary sources. Documented.

314:16 SUWAILEM, SAMI, AL-, "Towards an Objective Measure of Gharar," Islamic Economic Studies, Jeddah, (7:1&2), Oct 1999-April 2000, pp. 61-102.

Develops a framework for analyzing gharar based on economic aspects of game. The framework is consistent with Shari’ah maxims as well as individual gharar transactions widely studies in classical fiqh resources. In addition, the framework brings insights into explaining different fiqhi positions on controversial gharar contracts. When extended to contemporary practices, the measure helps in understanding logic of instrument design, where violation of Islamic rules exactly lies. Argues that the modern contracts of insurance, forward trading, options sale are not in conformity with Islamic law. However, supports bai' al-arbun and revenue sharing rather profit-sharing in bank financing. The Islamic law on gharar leads to a more stable and consistent economy.

For economists, jurists and financial analysts. Based on primary sources and contemporary financial and fame theory. Documented.

314:17. ZARQA, M. ANAS, "Comments on Sami al-Suwailem's paper: Towards an Objective Measure of Gharar in Exchange," Islamic Economic Studies, Jeddah, (7:1-2), Oct 1999-April 2000, pp. 103-107.

Incisive comments on Sami Suwailem's paper published in the same issue. Thinks that the author's conclusion about insurance is not correct. Digresses into a few highly insightful observations relating risk and compensation of risk.

For jurists and economists. Based on contemporary economic theory and primary sources of Islamic law. Documented.

315 Riba-free financial intermediaries and investment banks


315:1 ABDULMALIK, ATIF A., "Innovative Investment Opportunities in the Islamic Banking Industry", New Horizon, London, (115), Dec 2001-Jan 2002, pp.16-19.

Emphasizes the need for innovating new financial products in Islamic banking. Argues this is possible if the right type of environment is created.

For bankers. Based on practical experience of the author. Undocumented.

315:2 ALI, AHMAD MOHAMED, "The Emerging Islamic Financial Architecture: The Way Ahead”, Islamic Economic Studies, Jeddah, (9:2), March 2002, pp.77-82. Presented to the Fifth Harvard University Forum on Islamic Finance held during 6-7 April 2002.

Gives a summary of the recent initiatives taken by the Jeddah for promoting Islamic banking and its related institutions.

For general readers. Based on author's experience. Undocumented.

315:3 KNIGHT, W. DONALD, "Islamic Investment in the US", in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 536-543

Discusses the tax law of the US with reference of investment and highlights its implications for Islamic investment. Suggests how non-resident US investors can structure their financial instruments to minimize the tax bite.

For bankers, tax consultants and investors. Based on practical experience. Undocumented.

315:4 RAHMAN, S. M. H., "IBP:A Step Forward Towards Islamic Financing", Journal of Islamic Banking and Finance, Karachi, (17:2), April 2000, pp. 26-33.

A brief description on incorporation and performance of Islamic banks' Portfolio scheme launched by the Islamic Development Bank Jeddah. The data is up to year 1418 AH.

For general readers. Based on published reports. Documented.

315:5 WILSON, RODNEY, "Islamic Investment Products in the UK", New Horizon, London, (107), March 2001, 3-5 pp.

Discusses the state of Islamic investment products. A brief description of the role of HSBC in the UK is followed by discussion of manzil scheme of United Bank of Kuwait. There is brief description of various Islamic investment funds based in the UK.

For general readers and Islamic bankers. Based on practical information. Undocumented.

316 Riba-free credit to business and consumers, etc. (including mortgages)


316:1 ABDALLAH, AHMAED ALI, "Forms of Investment in Real Estates in Islamic Perspective" in Mahdi, Mahmoud Ahmad (ed), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp.43-54

Presented to a workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute and the Sudanese Estate Bank. Explains how various forms of Islamic finance can be used to finance house building. Thinks that in case of rent-sharing the value of the property which is considered the basis of rent-sharing should also be determined by the market. This value should not be the book value of the shares of the bank and customer.

For bankers and Muslim economists. Based on primary sources and practical experience of the author. Documented.

316:2 AHAD, RAHMATULLAH A, "Islamic Banking Methods for House Financing: A Case Study of India", in Mahdi, Mahmoud Ahmad (ed.), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp.141-178

Presented to a workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute and the Sudanese Estate Bank. Explains with practical examples the methods of housing finance followed by three financial institutions of India: Bait-un Nasr Urban Cooperative Society, Bombay; al-Ameen Islamic Financing and Investment Corporation, Bangalore; and All-India Council of Muslims' Economic Upliftment, Bombay.

For bankers and Muslim economists. Based on practical experience and published documents. Documented.

316:3 AKHTAR, M. RAMZAN, "An Islamic Plan of Financing Microenterprise Development," Journal of Islamic Banking and Finance, Karachi, (15:3), Jul-Sep1998, pp. 21-39.

Explains the special nature and profitability of microenterprises. Discusses various modes of Islamic finance. Argues that microenterprises could be easily financed through these modes. Proposes establishing Microenterprise Development Bank. Thinks that cooperative societies can play an active role in this area.

For Muslim economists. Based on contemporary literature. Documented.

316:4 BENDJILALI, BOUALEM, On the Demand for Consumer Credit: An Islamic Setting, Jeddah: Islamic Research and Training Institute, 1995, 49 pp.

Lays down the main axioms that govern the consumer credit in an Islamic framework. Discusses economic implications of each one of them and derives the demand function for consumer credit using the murabaha mode of financing. Shows that this demand function depends explicitly on the murabaha rate, on the income structure size, and on the above axioms which are embodied in the first partial derivatives of the utility function of the consumer. Builds a simple econometric model that can be used to estimate the demand for consumer credit in an Islamic setting.

Mathematical. For economists. based on contemporary literature. Documented.

316:5 BUYUKDENIZ, ADNAN, "Housing Certificates as an Interest-free Financing Instrument: The Turkish Case", in Mahdi, Mahmoud Ahmad (ed.), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp. 203-208.

Presented to a workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute and the Sudanese estate Bank. Explains the mechanics of housing certificates issued by a governmental body called Mass Housing and Public Partnership Administration.

For policy makers and bankers. Based on practical experience. Undocumented.

316:6 MAHDI, MAHMOUD AHMAD, Islamic Banking Modes for Building Financing , Jeddah: Islamic Research and Training Institute, 1995, 283 pp.

Proceedings of a workshop organized in Khartoum (Sudan) during 27-29 October 1991 by the Islamic Research and training Institute of the Islamic Development Bank Jeddah and the Sudanese Estate Bank Sudan. Contains three theoretical papers and eight case studies. The theoretical papers discuss the economic and fiqhi aspects of various modes of house building finance. The case studies explain how various financial institutions practice house building financing.

For bankers and Muslim economists. Based on primary sources and published data. Documented.

316:7 NASIM, PERVEZ,"A Case Study of Interest-free Housing Financing", in Mahdi Mahmoud Ahmad (ed.), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995 pp.179-202.

Presented to a workshop on housing finance held in Khartoum during 27-29 October 1991 by Islamic Research and Training Institute, and the Sudanese Estate Bank. Explains the practice of housing finance by the Islamic Cooperative Housing Corporation Canada. The practice is based on rent-sharing. Explains the method with examples.

For bankers and Muslim economists. Based on practical experience and published data. Documented.

316:8 SALAMA, ABDIN A., "Housing Finance In Islamic Countries" in Mahdi, Mahmoud Ahmad (ed.) Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp.27-36

Presented to a Workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute and Sudanese Estate Bank. Discusses Islamic methods of financing for house building such as murabaha, bai' istisna', and decreasing partnership. Also discusses the problems relating to registration fee, and housing certificates being used in Turkey. Recommends the use of these certificates.

For bankers and Muslim economists. Based on primary sources. Documented.

316:9 SHALTUT, KHALIL, "The Experience of the al-Baraka International Bank London in Financing Real Estate", in Mahdi, Mahmoud Ahmad (ed.), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp.119-139

Presented to a workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute and the Sudanese Estate Bank. Explains various methods of financing followed by the bank in financing house building. Illustrates rent-sharing techniques with concrete mathematical examples.

For bankers and Muslim economists. Based on practical experience. Documented.

316:10 UTHMANI, M. TAQI, "Methods of House Building Financing According to Shari’ah", in Mahdi, Mahmoud Ahmad(ed.), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp.61-73

Presented to a workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute, and the Sudanese Estate Bank. Explains how various modes of Islamic finance can be used for house building. Discusses the question of pledge in great detail and also how various segments of the contract should be handled from a legal perspective.

For jurists and Islamic bankers. based on primary sources. Documented.

316:11 YAHYA, HUSNI A. A., "The Experience of the Jordan Islamic Bank in Financing Housing Projects", in Mahdi, Mahmoud Ahmad (ed.), Islamic Banking Modes for Building Financing, Jeddah: Islamic Research and Training Institute, 1995, pp.77-117

Presented to a workshop on housing finance held at Khartoum during 27-29 October 1991 by Islamic Research and Training Institute and the Sudanese Estate Bank. Based on data for 1987-1990, explains the housing finance operations of the bank. Attaches various forms for agreements to illustrate the nature of contracts with the customers.

For bankers. Based on practical experience and published data. Documented.

317 Riba-free central banking and monetary policy


317:1"Criteria for Setting up of Scheduled Islamic Banks in the Private Sector", New Horizon, London, (116), Feb 2002, pp.7-8.

Text of the criteria issued by the State Bank of Pakistan for issuing a license to a private bank for doing Islamic banking business in Pakistan.

Legal source document. For bankers and investors.

317:2 "Islamic Banking and the UK Regulatory Controls", New Horizon, London, (108), April 2001, 7-9 pp.

Report of the seminar organized by Islamic Institute of Banking and Insurance, London on Regulatory Issues Relating to Islamic Banks. The UK regulator explained the requirements for Islamic banks. Other participants discussed what had been achieved and what was in the process.

For Islamic bankers. Based on practical experience. Undocumented.

317:3 AHMAD, AUSAF, Instruments of Regulation and Control of Islamic Banks by The Central Banks, Jeddah: Islamic Research and Training Institute, 1993, 48 pp.

Discusses from theoretical angle the question of regulation of Islamic banks by the central banks in the absence of interest. Gives practice of central banks in relation to Islamic banks in various scenarios. For example, how central banks regulate Islamic banks where they operate in competition with conventional banks? The other scenario is where the whole financial system is under transformation like Pakistan and Iran.

For economists and bankers. Based on published literature. Documented.

317:4 ALI, SHAUKAT, "Creation of Money and the Role of Central Bank in Islamic Framework: Simulation for Pakistan", IIUM Journal of Economics and Management, (9:1), 2001, pp. 55-76. Presented to the International Conference on Islamic Economics in the 21st Century organized by the IIUM, Kuala Lumpur, during 9-12 August, 1999.

Formulates in the context of Islamic economy a practical model in which monetary management could be practiced in the absence of interest rate. Carries out a simulation exercise of money creation for Pakistan by applying the said model to the existing data.

For economists. Mathematical. based on published data. Documented.

317:5 ASHKAR, A. A.FATTAH el-, "Towards an Islamic Stock Exchange in a Transition Stage", Islamic Economic Studies, Jeddah, (3:1), Dec.1995, pp. 79-112.

Deals with the structure and operation of an Islamic stock exchange. Though speculation is often blamed for the volatility of share prices, the paper contends that a reasonable degree of speculation is still required in an Islamic stock exchange. To regulate speculation in an Islamic stock exchange, several methods have been suggested. Regarding price mechanism, argues that the price fixation should be avoided. Also discusses organizational structure of an Islamic stock exchange and code of conduct appropriate to it.

Analytical. Based on contemporary literature. Documented.

317:6 BALZ, KILIAN, "Islamic Investment Funds in Germany," New Horizon, London, (112), Sept 2001, pp. 7-8.

Lists the regulatory requirements of German law for Islamic investment funds. The requirements pertain to selection procedure for securities, fund management, role of Shari’ah supervisory board, and marketing of the fund.

For fund managers. based on the German law. Undocumented.

317:7 CHOUDHRY, NURUN N., "Indirect Instruments of Monetary Control in an Islamic Financial System," Islamic Economic Studies, Jeddah, (4:2), May 1997, pp. 27-65.

Discusses instruments of monetary control in a market-oriented Islamic financial system, highlighting relative advantages of indirect instruments. Proposes equity-based government securities with rates of return based on budgetary surplus. Such rates are imbedded in the concept of social rate of return and are consistent with Qur’anic prohibition against the payment nd receipt of interest. Discusses the use of such securities in indirect method of control, thereby enhancing the role of price signal and improving market incentives in the development of Islamic financial system. Concludes that in the transition to the Islamization of banking and financial sectors, the indirect instruments can improve economic efficiency with parallel reform in these sectors as well as concomitant actions.

Analytical. Fore economists and bankers. Based on contemporary literature. Documented.

317:8 FIENNES, TONY, "Risk Management and Liquidity in Islamic Banking A Regulator's Perspective," New Horizon, London, (111), Aug 2001, pp.3-5.

Discusses various concerns that a regulator of financial services has about Islamic banks in the UK. These concerns are about credit risk, liquidity risk, market risk, solvency risk and operational risks. Explains how these concerns are applicable to Islamic banks.

For Islamic bankers. Based on the legal and regulatory requirements of the UK.

317:9 GOODEN, SARAH, "Participation of Stakeholders in the Corporate Governance of Islamic Financial Institutions", New Horizon, London, (114), Nov. 2001, pp.12-15.

Highlights the need for regulating the Islamic banks. The regulation should besides other things, some protection to the investment account holders. A concrete suggestion is to create a separate class of capital for unrestricted investment account holders and give them limited voting rights in respect of some affairs so that they are able to protect their interest.

For bankers and jurists. Based on practical experience of the author. Undocumented.

317:10 HANNAN, SHAH ABDUL, "Can Islamic Economics Solve the problems in the World Monetary System?" Thoughts on Economics, Dhaka, (8:1), July 1998, pp. 7-26.

Analyzes the recent East Asian crisis and identifies monetary factors responsible for it. Thinks proper monetary management by central banks could avoid this crisis. But this solution is not specific to the Islamic system. However, the Islamic system because of its regulations against speculation and moral filter could forestall such crisis in the first place.

For economists. based on primary and secondary sources. Documented.

317:11 NAUGHTON, TONY, "Is an Islamic Stock Market Viable?" New Horizon, London, (61), March 1997, pp. 7-11.

Discusses the possibility of establishing an Islamic stock exchange.Reviews various problems and issues relating to it , e.g., short selling, margin trading, options trading, warrants sales, control of speculation through price limits or forfeiture of short-term profits.

For economists and stock market players. Based on contemporary Islamic literature. Undocumented.

317:12 PATRIKIS, ERNEST, "Islamic Finance in the United States The Regulatory Framework," in Asma Siddiq (ed.), Anthology of Islamic Banking, London: Islamic Institute of Banking and Insurance, 2000, pp. 532-535

Enumerates regulatory issues relating to Islamic finance in the legal framework of the United States.

For bankers. Based on practical experience. Undocumented.

317:13 TOUTOUNCHIAN, IRAJ, "The Role of Central banks in Islamic Banking", New Horizon, London, (120), June 20002, pp. 8-13.

With the elimination of interest the central banks would play the following role: (1) Active participation in the preparation of development plan; (2)Set priorities of investment for islamic banks; (3) Set profit-sharing ratios; (4) Determine risks for different sectors; (5) Inspect Islamic banks; (5) Gradually reduce the statutory reserve ratio to zero.

For economists. Based on contemporary literature. Undocumented.

317:14 UTHMAN, USAMAH A., "Money, Interest and Alternative Macroeconomic System", International Islamic University Malaysia Journal of Economics and Management, (9:1), 2001, pp.101-114. Presented to the International Conference on Islamic Economics in the 21st Century organized by the IIUM, Kuala Lumpur during 9-12 August, 1999.

Discusses the nature of money and how does the introduction of interest-based system disturbs the essential function of money and causes economic instability. Asserts that a profit-loss sharing system leads to higher level of investment and consumption and thus provides for greater economic stability. The interest-free central bank shall auction money supply on the basis of profit sharing with competing banks. The sovereign profit share replaces the discount rate in regulating money supply. Some alternative forms of re-discounting and open market operations are suggested.

For economists. Mathematical. based on contemporary literature. Documented.


318 Elimination of riba from monetary policy


318:1 KHAN, M. FAHIM, "Mobilization of Funds on Islamic Principles’, in Asma Siddiqi (ed.), Anthology of Islamic Banking, London: Islamic Institute of banking and Insurance, 2000, pp. 388-391

The government can mobilize funds by commercializing its activities, obtaining infrastructure-related assets on ijara, procuring goods on the basis of mark-up. It would require developing suitable institutional arrangements for adopting these means. However, in the interim period, it can adopt indexation or providing some compensation as a gift to those who lend money to the government on interest-free basis.

For economists and policy-makers. Based on primary sources.



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