Product Development in Islamic Banks

This book systematically studies the process of developing Islamic financial products for banks.

Edinburgh Guides to Islamic Finance is a series of short guides to key areas in Islamic finance, offering an independent academic perspective and a critical treatment.

`Essential reading for those interested in having in-depth knowledge of the nature of product innovation and development in Islamic banks... Habib Ahmed offers new ideas in addressing some of the current challenges in a systematic way in this timely book.'' Roszaini Haniffa, Professor of Accounting, Hull University Business School, UK

Islamic banking began in the 1970s with the aim of providing financial services compatible with Islamic law. Driven by market forces, it has grown rapidly in Muslim countries and in international financial sectors. It is projected to grow at an annual rate of 15-20% and a key factor determining this future growth is the availability of new products that will satisfy the needs of various segments of society.

This book shows how the principles and contracts used in Islamic banking and finance can be used to develop financial products. Starting with the basic tenets of Shari''ah and the legal and regulatory environment under which Islamic banks operate, it then discusses the more intricate issues relating to product development processes.