Islamic structured investment: an example and critical analysis

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...

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Main Author:	Mustaffa Kamil, Nazrol Kamil
Format:	Conference or Workshop Item
Language:	English English
Published:	International Islamic University Malaysia 2019
Subjects:	HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/73487/ http://irep.iium.edu.my/73487/9/73487%20Islamic%20Structured%20Investment%20-Abstract.pdf http://irep.iium.edu.my/73487/10/73487%20Islamic%20Structured%20Investment.pdf

id	iium-73487
recordtype	eprints
spelling	iium-734872019-11-01T00:20:17Z http://irep.iium.edu.my/73487/ Islamic structured investment: an example and critical analysis Mustaffa Kamil, Nazrol Kamil HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation 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. International Islamic University Malaysia 2019 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/73487/9/73487%20Islamic%20Structured%20Investment%20-Abstract.pdf application/pdf en http://irep.iium.edu.my/73487/10/73487%20Islamic%20Structured%20Investment.pdf 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)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation
spellingShingle	HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation Mustaffa Kamil, Nazrol Kamil Islamic structured investment: an example and critical analysis
description	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.
format	Conference or Workshop Item
author	Mustaffa Kamil, Nazrol Kamil
author_facet	Mustaffa Kamil, Nazrol Kamil
author_sort	Mustaffa Kamil, Nazrol Kamil
title	Islamic structured investment: an example and critical analysis
title_short	Islamic structured investment: an example and critical analysis
title_full	Islamic structured investment: an example and critical analysis
title_fullStr	Islamic structured investment: an example and critical analysis
title_full_unstemmed	Islamic structured investment: an example and critical analysis
title_sort	islamic structured investment: an example and critical analysis
publisher	International Islamic University Malaysia
publishDate	2019
url	http://irep.iium.edu.my/73487/ http://irep.iium.edu.my/73487/9/73487%20Islamic%20Structured%20Investment%20-Abstract.pdf http://irep.iium.edu.my/73487/10/73487%20Islamic%20Structured%20Investment.pdf
first_indexed	2023-09-18T21:44:11Z
last_indexed	2023-09-18T21:44:11Z
_version_	1777413339823996928

Islamic structured investment: an example and critical analysis

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