Overview Of Contemporary Islamic Finance Book Review Example

Various principals surround the financial transactions of the Islamic finance. In the Islamic finance, the purpose of financing should not involve an activity that is against the Islamic law. The financing is not supposed to receive or give interest (riba) as well as risk which is known as gharar in Islamic. However, Islamic finance is very relevant to society because it promotes the sharing of risk and reward between contracting persons. The investor always goes for projects that has a high degree of risk and reward sharing because they are for profitable. In order to achieve all these principals, the Islamic finance incorporates other doctrines of Muslim faith in order to match the growing demand of financing and investment in the global market.
The origins and emergence of banking and financing are the fundamental development of the Islamic finance. The ethical teachings of Islam have promoted the active participation of financial institutions. Meanwhile, it has helped investors in achieving their goals and objectives of the Islamic economy. They have helped the society to meet their needs because it encourages socioeconomic justice. The key players in the Islamic financial system are Islamic banks and western because they have maintained the underlying principles and doctrine. Meanwhile, the Islamic financial system is based on various policies and goals that promote development and sustainability of Islamic finance.
In a recap, all activities that take place in the Islamic finance are based on the ethical teachings of Islam. The Islamic finance has greatly promoted the socioeconomic justice among societies that enhance economic growth. Therefore, the growth of the Islamic finance is due to strict Islamic teachings and the willingness to achieve various drivers of growth.