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acknowledge the patronage and assistance provided by World Scientific Group Company to publish this book. We thank the entire team that worked on this book project, especially Balamurugan Rajendran and Karimah Samsudin for their assistance in various stages of the editing and printing process.

      M. Kabir Hassan is a Professor of Finance in the Department of Economics and Finance in the University of New Orleans. He currently holds three endowed positions of Chairs-Hibernia Professor of Economics and Finance, Hancock Whitney Chair Professor in Business, and Bank One Professor in Business in the University of New Orleans. Professor Hassan is the winner of the 2016 Islamic Development Bank (IDB) Prize in Islamic Banking and Finance. Professor Hassan has done consulting work for the World Bank, International Monetary Fund, African Development Bank, Transparency International-Bangladesh (TIB), Islamic Development Bank, United Nations Development Program (UNDP), Government of Turkey and many private organizations. Professor Hassan has over 350 papers published as book chapters and in refereed academic journals. For his outstanding research and scholarly work, Dr. Hassan has been recognized with Lifetime Achievement Award by UNO Research Council in 2019.

      Salman Ahmed Shaikh holds a PhD in Economics from the National University of Malaysia. He has published research papers on Islamic Economics in top international journals; presented research papers in conferences held in Malaysia, Turkey, Brunei, Indonesia, and Pakistan; and has also contributed several book chapters in books published by Routledge, Springer, Palgrave, Edward Elgar, and Gower Publishing. He is also on the Editorial Advisory Board of several research journals. He also worked as Editor for the 2019 Global Islamic Finance Report for the Cambridge Islamic Institute of Islamic Finance. Furthermore, Emerald editorial team selected two of his papers for two separate journals as Highly Commended Paper in the 2018 Emerald Literati Awards. He also won paper prize in the World Islamic Finance Forum in 2018.

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      Selim Kayhan is a Professor of Economics at Necmettin Erbakan University, Turkey. He earned his PhD in Economics from Erciyes University, Turkey. He spent 2 years as Visiting Professor at Michigan State University and University of New Orleans. He specializes in monetary macroeconomics and has published a good number of articles in highly reputed journals. He has also worked as a consultant to the Turkish Government and presented papers in international conferences.

       Contents

       Foreword

       About the Authors

       List of Figures

       List of Tables

       List of Abbreviations

       PART IFoundations of Islamic Finance

       Chapter 1Introduction to Islamic Finance

       Chapter 2Islamic View on Capital Allocation

       PART IITheory and Application of Islamic Banking Products

       Chapter 3Product Structures in Islamic Banking

       Chapter 4Economics of Islamic Banking Product Structures

       PART IIIIslamic Capital and Money Markets

       Chapter 5Islamic Equity Investments

       Chapter 6Sukuk in Islamic Capital Markets

       Chapter 7Islamic Money Market

       PART IVRisk Management in Islamic Finance

       Chapter 8Takaful

       Chapter 9Risk Management in Islamic Banks

       PART VIslamic Banking: The Way Forward

       Chapter 10Islamic Social Finance

       Chapter 11Islamic Banking in the Digital Era

       Chapter 12Mainstreaming Islamic Finance: The Way Forward

       Answers to Self-Assessment End of Chapter Quizzes

       Index

       Figure 1.1.Islamic finance architecture

       Figure 1.2.Dow Jones Islamic Market Index closing values (May 2009–2019)

       Figure 2.1.Equilibrium in the interest-free asset market

       Figure 2.2.Downward shift in SDU curve

       Figure 2.3.Upward shift in SDU curve

       Figure 2.4.Rightward shift in SSU curve

       Figure 2.5.Leftward shift in SSU curve

       Figure 2.6.Islamic economics framework

       Figure 3.1.Some widely used Islamic modes of financing

       Figure 3.2.Murabaha process flow

       Figure 3.3.Salam process flow

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