Finance as Worship: A Survey of Islamic Finance Research

Abstract

The global Islamic finance industry is estimated to be worth approximately US $1.4 trillion, and has grown much faster than conventional finance over the past four decades. Although 80% of this industry is concentrated in the Middle East, North Africa, East Asia, and the Pacific, it is active in 59 countries across all continents. Formally launched in the 1970s, this industry has deep roots in Islamic law (Sharia) and offers many implications for modern finance. In this survey, we explore key aspects of Islamic financing through banking, capital markets, and private contracting. Our objective is to attract the attention of academic researchers, regulators and standard setters, and providers/users of Islamic funding to the critical issues related to the efficiency of Islamic finance.