Ahmed, Habib (2010) 'Islamic finance at a crossroads : the dominance of the asset-based sukuk.', Butterworth's journal of international banking and financial law., 25 (6). pp. 366-367.
Abstract
In mimicking conventional finance, Islamic finance is focusing on the legalistic forms and ignoring the substance of Islamic law. Long-term growth of the industry will depend on the dominance of substance over the form. KEY POINTS * The principles of Islamic law governing financial transactions can bring about stability in the financial system. * However, by replicating conventional financial products and focusing on the legalistic forms only, the practice of the Islamic financial industry is diluting the principles of Islamic law. * In the sukuk market, the overwhelming majority of sukuk are asset-based with the primacy of form over substance. * Moving to a more substance-based Islamic finance is needed to reduce the reputation risk and integrity of the industry.
Item Type: | Article |
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Full text: | (VoR) Version of Record Download PDF (14Kb) |
Status: | Peer-reviewed |
Publisher Web site: | http://lnbconnect.co.uk/vmchk/Journals/Butterworths-Journal-of-International-Banking-and-Financial-Law.html |
Date accepted: | No date available |
Date deposited: | 27 January 2011 |
Date of first online publication: | June 2010 |
Date first made open access: | No date available |
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