Islamic Finance

Vicary Abdullah Daud

Sujets

• Islamic studies
• Muslim world
• Finance

Informations

• Publié par: Marshall Cavendish International (Asia) PTE LTD
• Date de parution: 01 février 2010
• Nombre de lectures: 1
• EAN13: 9789814312448
• Langue: English

Extrait

© 2010 Marshall Cavendish International (Asia) Pte Ltd Reprinted 2010, 2011
Cover art by OpalWorks Co. Ltd Project editor: Lee Mei Lin / Designer: Rachel Chen
Image on pages 263 and 273 courtesy of Haji Noor Deen All content information in this book is correct at press time
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National Library Board Singapore Cataloguing in Publication Data Vicary Abdullah, Daud, 1951-
Islamic finance : why it makes sense / Daud Vicary Abdullah & Keon Chee.– Singapore : Marshall Cavendish Business, c2010. p. cm. Includes index. eISBN 978 981 4312 44 8 1. Finance – Religious aspects – Islam. 2. Finance – Islamic countries. I. Chee, Keon. II. Title. HG187.4 332.088297 – dc22                 OCN467596799
Printed in Singapore by Craft Print International Ltd

To my wife, Sabariah, and our four sons, Raslan, Rastam, Adam and Azrai, for their support and patience in allowing me to follow a dream. — Daud
To Amir Mikhchi (Iran), Ali Asadi (Iran) and Mohammad Nor (Pakistan) who showed me the gentleness of Islam. — Keon

P REFACE
A CKNOWLEDGEMENTS
F OREWORD
1       Why Islamic Finance?
2       Understanding Islam and Muslims
3       Basic Islamic Finance Principles
4       An Overview of Islamic Finance Contracts
5       Building an Islamic Finance Framework
6       How Financial Markets Work
7       Saving and Spending
8       Financing (Based on Debt)
9       Financing (Based on Leasing)
10    Other Islamic Financing Methods
11    Insurance
12    Investing
13    Trade Financing
14    Prospects: Ordinary or Extraordinary
G LOSSARY OF T ERMS U SED
I NDEX
S ELECTED R EFERENCES
P REFACE
AS WE WERE BOTH not born into Muslim families, getting an initial grasp of Islamic finance was rather challenging to us.
One positive outcome of this early experience is that we have obtained an excellent insight into how a person—whether new to finance, to Islam, or to both—can go about understanding Islamic finance. Our first objective is thus to attempt to shed a little light on the subject of Islamic finance and to provide a good basis for your better understanding in the future.
In helping you learn how Islamic finance works, we took the perspective of the consumer who may not know much about finance or Islam, but who, like everyone else, has to make very important financial decisions throughout his or her life.
We thus made the effort to first explain financial transactions that we often take for granted and which many of us may not actually understand, such as mortgages, investing, insurance and trade finance. We then described their Islamic versions.
Our second and equally important objective is to help you appreciate the very quintessential principle of Islamic finance. It is that of fairness—in all interactions with people, family, business partners, non-Muslims and the community. For this, we sincerely hope to have lived up to achieving this objective.
This has been an enjoyable journey for us. We hope we have helped you begin your own journey with Islamic finance.
Daud Vicary Abdullah and Keon Chee
December 2009
A CKNOWLEDGEMENTS
from Daud Vicary Abdullah
I would like to thank my co-author Keon Chee for getting me involved in this project. It was not something that I had thought of doing. However, his persistence, vision and hard work have been an inspiration to me throughout. I do not have the words to thank my mentor, Mustapha Hamat (Pak Mus) enough for his guidance and contribution throughout my career in Islamic finance. His quiet, understated manner belies a fervent passion for the truth and a desire for the world to have a clearer understanding of this topic. This really has been a case of “when the student is ready, the teacher appears”.
from Keon Chee
I would like to thank my co-author Daud Vicary Abdullah for believing in me at a time when I was completely new to Islamic finance. My deep thanks and respect to Pak Mus, whom I am much awed by, for his inspirational guidance and passion.
from both of us
We would like to thank Lee Mei Lin, senior editor at Marshall Cavendish, whose enthusiasm and foresight for this project made the hard work all worthwhile. And finally, we would like to thank See Phui Yee who is a most masterful and clever editor.
I AM VERY PLEASED to be writing this foreword for Daud Vicary Abdullah and Keon Chee.
When they first told me that they wanted to write a book on Islamic finance that would appeal to non-Muslims as well as Muslims, I felt immediately encouraged. I had been involved in Islamic finance for over two decades and it is a subject that is very close to my heart. In fact, I was involved with Islamic finance right from the very start when the first Islamic commercial bank, Bank Islam Malaysia Berhad, was set up here in Malaysia. It is my ongoing aspiration and commitment to help spread the message that Islamic finance is for everyone, and that it is founded on sound business, social and ethical principles that apply to both Muslims and non-Muslims. So when Daud and Keon sought my help for guidance, I gladly said yes.
Daud’s professional experience in banking and finance gave me great confidence that the book will be able to provide the general public, particularly non-Muslims, with a good and comprehensive exposure on Islamic finance. Daud was a senior banker with one of the big UK-based banks, CEO of a newly established full-fledged Islamic bank in Kuala Lumpur, and a senior consultant with the well-known consulting and audit firm Deloitte for most of his career. He has acquired substantial knowledge and experience in banking and finance, conventional as well as Islamic.
I met Daud for the first time in June 2002 when he was a partner in Deloitte Consulting with responsibility for the financial services industry in Korea. As CEO of the Islamic Banking and Finance Institute (IBFIM) then, I had sought Deloitte’s assistance in one of IBFIM’s assignments to introduce Islamic finance products to an investment bank in Kuala Lumpur, and Daud was assigned by the firm to work with IBFIM on this project. Daud came with such fire in his eyes I became very confident that the project was going to be successfully completed, and it was.
One thing I do take credit for is that I must have inspired him to learn about Islamic finance. Because from there on, he started to study at the IBFIM, attended many other courses in Islamic finance and obtained several Islamic finance credentials. Soon after, he was appointed as a board member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the global accounting standards-setting body for Islamic finance, which is located in Bahrain. Daud Vicary is now back with Deloitte as the Global Leader of its Global Islamic Finance Group. He is today a very well-respected Islamic banker in Malaysia as well as in other parts of the world.
I met Keon in February 2008 when Daud set up a breakfast meeting in Kuala Lumpur. Daud had been in several discussions with him earlier and was convinced that Keon would be a good writing partner for the book. I trust Daud’s judgement and agreed right away to provide guidance even though Keon knew very little about Islamic finance then.
But something about Keon made me believe that it was the right thing to do. He too had an unmistakable fire about him. It also struck me that Keon, being non-Muslim, can be an excellent choice for this purpose. His perspectives could help thousands of non-Muslims learn about Islamic finance. Up till now, many who are interested in the subject, including Muslims, have found it difficult because the writing done by academics and experts in the field is too advanced for the general public. Along with the Islamic expertise that Daud brings to the table, I thought they would make quite a diverse and formidable partnership.
There will no doubt be mistakes or even inaccuracies in their writing. The Koran says, “for Allah is with those who patiently persevere” (2:153). I believe that the book they have written will move things forward and I applaud them for their efforts.
Mustapha Hamat
Distinguished Academic Fellow of IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University, Malaysia (IIUM); and former General Manager of Bank Islam Malaysia Berhad and CEO of IBFIM
IMAGINE—A MODEL of finance that rejects interest payments has been firmly regi