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Risk Management in Islamic Finance: An Analysis of Derivatives Instruments in Commodity Markets (Brill's Arab and Islamic Laws, Band 1) - Hardcover

Buch 1 von 17: Brill's Arab and Islamic Laws Series

Al-Amine, Muhammad Al-Bashir Muhammad

 
9789004152465: Risk Management in Islamic Finance: An Analysis of Derivatives Instruments in Commodity Markets (Brill's Arab and Islamic Laws, Band 1)

Inhaltsangabe

This study addresses derivatives instruments in Islamic finance. It highlights the benefits of these instruments, their legal aspects and the appropriate alternatives. The forward, futures and options contracts in commodity markets are discussed and the arguments in favour of and against these instruments examined.

The forward contracts issue includes the possibility of trading gold in forward basis, the forward market for currencies and the possible alternative to manage related risks. With the examination of futures contracts, the main arguments against such a contract are addressed, for example the sale prior to taking possession and the sale of debt hedging and speculation. The study proposes khiyar al-shart and bay al-arbun as tools of risk management and alternatives to options. The sale of pure rights is at the center of the admissibility of options in Islamic law and is investigated comprehensively.

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Über die Autorin bzw. den Autor

Muhammad Al-Bashir Muhammad Al-Amine, Ph.D. (2003) International Islamic University Malaysia, is currently Shariah Compliance Department Manager at Unicorn Investment Bank, Bahrain. He has published extensively on Islamic banking and finance in several reknown journals including Arab Law Quarterly.

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This study addresses derivatives instruments in Islamic finance. It highlights the benefits of these instruments, their legal aspects and the appropriate alternatives. The forward, futures and options contracts in commodity markets are discussed and the arguments in favour of and against these instruments examined. The forward contracts issue includes the possibility of trading gold in forward basis, the forward market for currencies and the possible alternative to manage related risks. With the examination of futures contracts, the main arguments against such a contract are addressed, for example the sale prior to taking possession and the sale of debt hedging and speculation. The study proposes "khiyar al-shart" and "bay al-arbun" as tools of risk management and alternatives to options. The sale of pure rights is at the center of the admissibility of options in Islamic law and is investigated comprehensively.

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