Part VII International Securities, Including Markets and Clearing Systems, 24 Islamic Capital Markets »
Peter CaseyFrom: Financial Markets and Exchanges Law (3rd Edition)
Edited By: Michael Blair, George Walker, Stuart Willey
This chapter focuses on Islamic finance, which refers to financial activities conducted through a variety of financial contracts that comply with Shar?ah rules and principles as derived from primary and secondary sources. It explains the primary sources are the Quran, the Holy Book of the Muslims, and the Sunnah, the way of life prescribed as normative in Islam. It also mentions the secondary sources, which refer to the conclusions of legal reasoning by approved techniques and competent scholars. This chapter discusses modern Islamic finance, which can be seen as a product of the end of the colonial era. It notes that the first Islamic bank, a savings association, was established in Egypt in 1961 and the first modern commercial Islamic bank, Dubai Islamic Bank, was established in the United Arab Emirates in 1975.