Is there a critical but analytical evaluation of Islamic financial instruments? A Comparative Literature Survey of Islamic Finance and Banking"

Abstract

When the Idea of Islamic finance was put into practice on a large scale, few of Islamic financial instruments did exist. The pioneers of the idea were not given blueprint of Islamic finance in practice. Most of Islamic financial instrument as one sees today were developed in the daily practices of Islamic finance and banking. From time to time, these instruments have been developed according to nature of business of particular Islamic financial institution and needs of particular markets.

On the contrary, many other forms of Islamic financial instruments have gained popularity but they are subject of on-going discussions. Although, their legal form may be acceptable by Shariah point of view but their economic effectiveness is not different from interest based financial instruments which Islamic financial theories propose to try to replace. The present study deals with many other of the main financial principles. It then analyses and assesses how many prevalent and inherent Islamic financial products utilised today stays as commercially competitive.