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Principals of the Islamic finance:A focus on project finance


  • Elasrag, hussein


Islamic finance is one of the fastest growing segments of global financial industry. In some countries, it has become systemically important and, in many others, it is too big to be ignored.Islamic finance is based on shariah, an Arabic term that often is translated to “Islamic law.”Shariah provides guidelines for aspects of Muslim life, including religion, politics, economics,banking, business, and law.The basic sources of Shari’ah are the Qur’an and the Sunna, which are followed by the consensus of the jurists and interpreters of Islamic law. The central feature of the Islamic finance system is the prohibition in the Qur’an of the payment and receipt of interest (or riba). Islamic finance is a rapidly growing industry. While it represents a small proportion of the global finance market (estimated at 1%-5% of global share), the Islamic finance industry has experienced double-digit rates of growth annually in recent years (estimated at 10%- 20% annual growth). Industry experts estimate that assets held under Islamic finance management doubled between 2007 and 2010 to reach around $1 trillion. This paper tries to note the main Principal of Islamic finance. In addition to discuss the Improvement can be made in several areas to promote and enhance the providing Islamic financial services.

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  • Elasrag, hussein, 2011. "Principals of the Islamic finance:A focus on project finance," MPRA Paper 30197, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30197

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    References listed on IDEAS

    1. El-Gamal,Mahmoud A., 2009. "Islamic Finance," Cambridge Books, Cambridge University Press, number 9780521741262, May.
    2. M. Umer Chapra, 2007. "Challenges Facing the Islamic Financial Industry," Chapters,in: Handbook of Islamic Banking, chapter 21 Edward Elgar Publishing.
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    Cited by:

    1. Hussein ELASRAG, 2016. "Islamic finance for SMES," Journal of Economic and Social Thought, KSP Journals, vol. 3(3), pages 417-433, September.

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    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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