Contents
Publishers’ note ii
Contents iii
About the Contributors vii
Foreword xv
Foreword xvii
PART ONE Background to Islamic Finance
11.1 Religious Foundations of Islamic Finance 3 Roderick Millar
1.2 The Development of Islamic Finance in the UK 9 Michael Ainley, Ali Mashayekhi, Robert Hicks, Arshadur
Rahman and Ali Ravalia, The Financial Services Authority
1.3 Islamic Alternatives to Conventional Finance 13 Pervez Said, Islamic Banking Department, State Bank of
Pakistan
1.4 The Institutional Infrastructure Supporting the Islamic
Finance Industry 21
Professor Rodney Wilson, Durham University, UK
PART TWO Islamic Finance in Practice
292.1 Retail Banking: Current and Savings Accounts and Loans 31 Roderick Millar
2.2 Personal Finance: Credit Cards 37
Dr Saleh Alfuraih, Al Rajhi Bank
2.3 Islamic Mortgages 43
Sultan Choudhury, Islamic Bank of Britain, and Shaher Abbas, Islamic Finance Advisory and Assurance Services
2.4 Trade Finance 53
Richard T de Belder, Denton Wilde Sapte LLP
2.5 Working Capital 65
Dr Salman Khan, Abu Dhabi Islamic Bank
iv Contents
2.6 Commercial Real Estate and Project Financing 75 Richard T de Belder, Denton Wilde Sapte LLP
2.7 Syndicated and Structured Islamic Finance 83 Richard T de Belder, Denton Wilde Sapte LLP
2.8 Investment Banking 93
Richard T de Belder, Denton Wilde Sapte LLP
2.9 Islamic Capital Markets 103
Mansur Mannan, Credit Suisse
2.10 Secondary Markets in Islamic Finance 117
Majid Dawood, Yasaar Ltd
2.11 Screening and Purification Criteria: Shari’a Application to
Investments 125
Iqbal Asaria, Yasaar Ltd
2.12 Takaful 129
Mohammed Khan, PricewaterhouseCoopers
2.13 Takaful vs. Conventional Insurance 139
Mohammed Khan, PricewaterhouseCoopers
2.14 Human Resources and Training for Islamic Financial
Activities 143
Mohammad Shafique, Institute of Islamic Banking and Insurance
2.15 Taxation 149
Mohammed Amin, PricewaterhouseCoopers
PART THREE Regulatory Issues
1613.1 Prudential, Regulatory and Supervisory Criteria 163 Tim Plews and Antony Hainsworth, Clifford Chance
3.2 Basel II and Capital Adequacy 169
Natalie Schoon, Bank of London and Middle East
3.3 Regulations and Challenges in the UK 177
Michael Ainley, Ali Mashayekhi, Robert Hicks, Arshadur Rahman and Ali Ravalia, The Financial Services Authority
3.4 Shari’a Supervisory Boards and Shari’a Compliance 185 Richard T de Belder, Denton Wilde Sapte, LLP
Appendices
193Appendix 1: Contributors’ Contact Details 195
Appendix 2: Case Study: Conversion of a Commercial Bank to Islamic Banking
199
Roderick Millar
Contents v Appendix 3: Glossary of Islamic Finance Terms 203
Index: 211