Driven by strong consumer demand for Shariah-compliant financial products, in many ways Islamic finance is an area where practice has preceded theory. While Islamic financial practitioners and institutions develop new products to meet the diverse needs of their clientele on an almost daily basis – and are aided by Shariah Scholars and others who engage in a discourse focusing primarily on transactional integrity – the broader theoretical development of these ideas continues to lag significantly behind.
What this enterprise really needs today – and has seriously lacked thus far – are the Adam Smiths, Maynard Keynes, and Irving Fishers of Islamic Economics – individuals of deep understanding and grand visions who could interpret economics under a different set of underlying principles, axioms, and institutional structures. What is also needed is that this theoretical project be complimented with serious empirical work to further understand and develop the field on solid empirical footing.
Read: Dinar Standard
Islamic Financing Sector to Reach $1 Trillion by 2010
“For Islamic financing to be successful, it needs to have similar breadth and access to financing solutions currently available in the conventional markets. That does not mean merely copying them. We need to provide a bona-fide alternative to conventional financing. That means financing in a manner that meets the core of Islamic financing’s objective—investing and finance in a responsible and ethical manner.” Cambridge Forecast Group
DIFC in Islamic finance standardisation study
A research project that will study the standardisation of Islamic finance is to be launched this year by the Dubai International Financial Centre (DIFC), says a top official. The centre, together with undisclosed partners, will formulate standards for different types of Islamic transactions including accounting and banking, Nasser Al Shaali, CEO of the DIFC, told Emirates Business. « This cannot be applied to the UAE or GCC only, » he said. « It has to have a global appeal, it has to have a broad base. Emirates Business