A Basic Guide to Contemporary Islamic Finance
The primary objective of this introductory guide is to explain to the non-specialist curious Muslim the difference between the forbidden financial transactions commonly used in conventional finance, and their Islamically permitted counterparts. It is important for me to make it clear that I am not endorsing any particular institution or industry which labels itself “Islamic”. There are many honest, sincere, and hardworking Muslim men and women who are currently struggling to make it easier for Muslims in North America to lead their lives in accordance with the Sh ¯ ar¯ı‘ah, without having to make unreasonable financial sacrifices. Such individuals and groups deserve our support and du‘¯a’. However, prudence also dictates that we recall that religion has often been used by individuals with sick hearts to exploit the gullible. The humble educational aims of this work are two-fold: 1. By alerting the North American Muslims to the differences between conventional and Islamic finance, we may be able to boost the efforts of the sincere Muslims developing or dealing with Islamic financial institutions. 2. By providing a clear basic understanding of the underlying contracts, Muslims may become less prone to making inadvertent errors, as well as less likely to fall prey to the inevitable exploitative efforts of some unscrupulous individuals. I beg the forgiveness of All¯ah for the mistakes I make, and pray that He makes this effort a fruitful one.