Preface ix Acknowledgments xv Acronyms xvii About the Authors xxi PART ONE Emergence of Modern Islamic Finance 1 CHAPTER 1 History and Core Principles of Islamic Finance 3 CHAPTER 2 Islamic Finance: Opportunity for Egypt's Development 19 PART TWO Managing Systemic Risks 51 CHAPTER 3 Risks, Spillovers, and Distress 55 CHAPTER 4 Coping with Crises: Policies, Institutions, and Markets 67 PART THREE Regulatory Challenges 93 CHAPTER 5 The Dilemma of Tailor-Made versus Mainstream Regulation 95 CHAPTER 6 Toward an Enabling Framework 107 PART FOUR Corporate Governance 121 CHAPTER 7 Financial Fiduciary Governance 123 CHAPTER 8 Corporate Governance and Shari'a Compliance 145 CHAPTER 9 Toward a Systemic Shari'a Governance Framework 181 APPENDIX Islamic Finance: The International Landscape 205 References 217 Index 231.

Islamic finance, like conventional finance is a business of financial intermediation. Its distinctive features relate to the requirement that it abides by Shari'a rules that promote fairness of contracts and prevention of exploitation, sharing of risks and rewards, prohibition of interests, and tangible economic purpose. Islamic finance should not fund activities considered "haram" or sinful. The book expounds on how these distinctive features bear on the opportunities and challenges facing the Islamic finance industry's development, risk management, regulation and corporate governance. Covers the history and basics of Islamic finance, and provides insight into current conditions and future landscape; Explores regulatory framework, including opportunities and challenges for the industry's development and mainstreaming; Presents an approach to developing a systemic Shari'a governance framework to govern operations in the Islamic finance industry.