Islamic Finance

The creation of the first Sharia-compliant commercial bank in 1975 carved out a place on the world economic stage for Islamic finance. Since then, the industry has grown, offering products specially designed to comply with the principles laid out in the Qur’an and the Sunna, the most ancient and revered texts of the Islamic tradition. In this tradition, scholars trained in interpreting these texts within the context of Islamic jurisprudence (fiqh) offer rulings (fatwa) based on individual appeals for admissibility of certain practices. The Islamic finance industry created a highly specialized class of interpreters who study the instances of economic advice and instruction in the foundational texts of Islam, which can shape modern-day banking practice. As such, Islamic finance has been described as an ethical ...