Islamic structured investment: an example and critical analysis

Mustaffa Kamil, Nazrol Kamil (2019) Islamic structured investment: an example and critical analysis. In: 1st International Conference on Financial Markets 2019 (ICFM), 11th-12th July 2019, Kuala Lumpur. (Unpublished)

	PDF (Program and abstract) Restricted to Repository staff only Download (231kB) | Request a copy
	PDF (Unpublished paper) Restricted to Repository staff only Download (953kB) | Request a copy

Abstract

This paper discusses in detail one example of an Islamic structured investment product. The said product is used as an illustration to highlight some issues deemed critical in the development of the wider Islamic finance space. The author humbly submits that convoluted structures, quite common in contemporary Islamic finance, are generally not healthy for the industry and its stakeholders. Opacity in financial dealings not only increases the cost of doing business, it makes risk assessment and management that much more challenging, to both transacting parties and regulators. Some additional perspectives related to the polemic on the practice of tawarruq are also offered. Finally, some thoughts on the widespread usage of wa’d as a somewhat indispensable tool in structuring contemporary Islamic financial instruments as well as the attitude towards risk inherent in structured products vis-à-vis a reasoned Islamic risk-return paradigm are deliberated upon.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	4979/73487
Uncontrolled Keywords:	Islamic Structure Investment, Islamic finance, Tawarruq, Waa’d
Subjects:	H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance H Social Sciences > HG Finance > HG4501 Stocks, investment, speculation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr. Nazrol Kamil Mustaffa Kamil
Date Deposited:	26 Jul 2019 14:42
Last Modified:	01 Nov 2019 08:20
URI:	http://irep.iium.edu.my/id/eprint/73487

Actions (login required)

View Item