Ethicas handbook of islamic finance (preview)

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a 700 page e-book packed with practical, usable information. Everything from sample Islamic finance contracts, over 1,000+ scholar-approved Q&As, the entire "Meezan Bank Guide to Islamic Banking," study notes to Ethica's award-winning Certified Islamic Finance Executive (CIFE) program, and much more. All organized with an easy-to-use subject index at the end.

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Ethicas handbook of islamic finance (preview)

  1. 1. www.EthicaInstitute.comETHICA’S HANDBOOK OF ISLAMIC FINANCE 2013 EDITION www.EthicaInstitute.com 1
  2. 2. www.EthicaInstitute.com © 2013 Published by Ethica Institute of Islamic Finance 1401, Boulevard Plaza, Tower 1 Emaar Boulevard, Downtown Dubai P O Box 127150, Dubai, United Arab Emirates www.EthicaInstitute.com info@EthicaInstitute.comAll rights reserved. Aside from fair use, meaning a few pages or less for nonprofit educationalpurposes, review or academic citation, no part of this publication may be reproduced without theprior permission of the Copyright owner.Disclaimer: Content in this e-book and available at www.EthicaInstitute.com is provided foreducation and informational purposes only, without any express or implied warranty of any kind,including warranties of accuracy, completeness, or fitness for any particular purpose. Theinformation contained in or provided from or through all of Ethica’s content is general in nature andnot specific to you or anyone else and is not intended to be and does not constitute financial, legal,investment, trading or any other advice. You understand that you are using any and all informationavailable on or through this and other Ethica content at your own risk.If you are the owner of publishable content that you would like included in the next edition ofEthica’s Handbook of Islamic Finance, please contact us at contact@ethicainstitute.com.Cover photo: Copyright © Sohail Nakhooda 2
  3. 3. www.EthicaInstitute.comEthica’s Handbook of Islamic Finance is a free book designed foryou. Everyone is welcome to copy, forward, store, or share all or partof this book for non-commercial use.We only ask that the words be left as they are and that the source beattributed and acknowledged with a link to our website(www.EthicaInstitute.com).This version is only a preview. You may download the full 700 pageoriginal e-book from: http://bit.ly/EthicaEbook.Click here to receive regular updates and the 2014 edition of Ethica’sHandbook of Islamic Finance. 3
  4. 4. www.EthicaInstitute.comCorruption has appeared in the land and sea, for thatmens own hands have earned, that He may let them taste some part of that which they have done, that haply they may return. Quran (30:41) "All that we had borrowed up to 1985 or 1986 was around $5 billion and we have paid about $16 billion yet we are still beingtold that we owe about $28 billion. That $28 billion came aboutbecause of the injustice in the foreign creditors interest rates. If you ask me what is the worst thing in the world, I will say it is compound interest." President Obasanjo of Nigeria, G8 summit, Okinawa, 2000 4
  5. 5. www.EthicaInstitute.comTABLE OF CONTENTSWe Believe... 6Speech 8Use this speech or the accompanying video at your conference, training session, bank oruniversity.Petitions 19Use these sample petitions to bring standardized Islamic finance into your community.Articles 24Use these articles to inform yourself and others about the basics of Islamic finance.Meezan Banks Guide to Islamic Banking by Dr. Imran Usmani 63Use this section for a more detailed understanding of the industry’s core products from one ofits leading scholars.Islamic Finance Contracts 192Use these sample contracts to educate yourself and your bank about Islamic financeinstruments.CIFE™ Study Notes 298Use these study notes to help you prepare for Ethica’s Certified Islamic Finance Executive™(CIFE™) program.Recommended Reading for Practitioners 351Use this reading list to help develop your worldview on finance.Recommended Reading for Entrepreneurs 358Use this reading list to help you jump start your Islamic finance idea.Islamic Finance Questions and Answers 362Use this database of 1,000+ scholar-approved answers to guide your commercial dealings.Glossary of Commonly Used Terminology 643Use this section to understand the industry’s most commonly used terminology.About Ethica Institute of Islamic Finance 667About the Certified Islamic Finance Executive™ (CIFE™) 670Press Releases 676Subject Index 679Use this detailed index to quickly search the entire e-book.Contact Ethica 700 5
  6. 6. www.EthicaInstitute.comWE BELIEVE...We believe that interest is the root cause of most of the world’s problems.If we did not have compound interest, we would not need compound growth. And if we did notneed compound growth, we would not have most of the debt-induced poverty, resource-hungrywars, and runaway climate change we now see. All interest – whether simple interest or compoundinterest, whether at very low rates or very high rates – grows so fast that we simply cannot keep up.Need an example? Brazil is home to the beautiful Amazon rainforest. This lush wonder supplies uswith a quarter of the world’s oxygen. That’s one in every four breaths. Unfortunately, this forest willvanish in our lifetimes. Why? So Brazil can pay off $200 billion of debt. How? With lumber.Or take an example closer to home. Are you or someone you know crushed under growing personaldebt?We believe there is a connection between interest and many of the world’s problems. And webelieve that Islamic finance can help solve some of these problems.But for this to happen we need two things: the letter of the law and the spirit of the law. For the letterof the law to work, Islamic finance needs to follow some basic minimum standards. Standards thatwon’t be taken seriously unless central banks start pulling some licenses.The best standard in the industry – de facto in over 90% of the world’s Islamic finance jurisdictions –is AAOIFI (pronounced “a-yo-fee”), which stands for the Accounting and Auditing Organization forIslamic Financial Institutions. AAOIFI brings together scholars from all over the world who agree onShariah standards. If it isn’t AAOIFI-compliant, it probably isn’t Shariah-compliant. We believe thatfollowing AAOIFI Shariah Standards – and questioning whether your bank, scholar, or trainer isfollowing them – is a good starting point for following the letter of the law.But we can’t stop there. Islamic finance needs to follow the spirit of the law as well.We need to promote equity-based structures like Musharakah and Mudarabah and reduce ourdependence on expedient structures like Murabaha. We need to eliminate Tawarruq. And at abroader level, we need to address the larger problem of fractional debt-reserve banking. Why dobanks get to lend money they don’t have? And make money on money that doesn’t exist? Does thismake sense?While the reality is that banks aren’t going away anytime soon, a first step to challenging fractionaldebt-reserve banking is establishing a globally recognized gold-based currency. This immediatelyforces the market to tie transactions to assets rather than base them on mere numbers insidecomputers.So where do we start with promoting the law in letter and spirit?We believe it starts with you and me. Manifesto 6
  7. 7. www.EthicaInstitute.comIf you’re a banker, you can start doing two things at your bank: 1) check that your bank’s productscomply with AAOIFI. The latest standards are available at www.aaoifi.com; and 2) start switching toMusharakah and Mudarabah for a variety of activities ranging from liquidity management to tradefinance. And if your bank doesn’t offer Islamic finance, start asking why.If you’re a regulator and Islamic finance is already practiced in your jurisdiction, pressure banks tofollow AAOIFI or risk having their licenses suspended. At a broader level, support the Islamicmicrofinance industry. If Islamic finance hasn’t yet reached your jurisdiction, promote awarenesswith training and educational initiatives.If you’re an entrepreneur, you probably have a skill the Islamic finance industry could use. Dreambig: create a company, a community-based institution, a local currency, an ecologically-mindedvillage, or an innovative product. In most countries, people still lack interest-free alternatives tohome, education, and healthcare financing. Why is it easier to issue a billion dollar Sukuk than it isto raise a single penny for a Shariah-compliant education financing? How can we betteroperationalize Zakah? How do we build Waqf-based community-owned trust models? Therecommended reading list for entrepreneurs later in this book gets you started with your idea.And if you’re a student, learn Islamic finance. Think beyond the standard career path and seriouslyconsider starting something on your own. Do what you love and success will follow.We believe this century – indeed, the coming years – will be like nothing before. Global heating willmean less food and water. Peak oil will mean less energy. And repeated financial crises will meanless certainty. We can throw our hands up and walk away in resignation. Or we can identify the rootproblems and do something about it. God only makes us responsible for our actions. He takes careof outcomes.We believe that it’s time to openly question the interest-based paradigm and promote interest-freefinance as the proven alternative. But the first step to questioning a paradigm and offering analternative is to educate yourself. Only then will you believe. And that’s what this book is all about:conviction. Because if you believe, then so will everyone else. Manifesto 7
  8. 8. www.EthicaInstitute.comSPEECH 8
  9. 9. www.EthicaInstitute.comSPEECH:WHY ISLAMIC FINANCE?You are free to read all or part of this speech or play the video at conferences, training sessions,banks and universities.What do President Obasanjo of Nigeria, Nick the UKhomebuyer, and Faisal the American college student allhave in common? They’re all trying to pay off loans thatseem to increase every single day. What started off witha seemingly small interest rate ballooned intosomething completely unattainable. We’ll look at eachof their examples a little later.First, let’s answer the big question on everyone’s mind:How is Islamic finance different from conventional PLAY NOWfinance? It looks the same. The result is often the same. What’s the difference?Well, the best way to find out is with a simple, real-world comparison. Let’s take $10,000, forinstance. And lets compare what a conventional bank can do with this $10,000 and what anIslamic bank can do.First, the conventional bank.The conventional bank finds a credit worthy customer and lends at 5% interest. The bank is notparticularly concerned about what happens to this money other than that it gets repaid. Thecustomer, on the other hand, has already found a borrower willing to pay 7%. This borrower runs asmall credit co-op for students and lends at 10%. One of these students is enterprising enough tolend to his unemployed brother at 15%. Who has just discovered the power of compoundinginterest and now lends to street vendors at 25%. We could go on. But you get the idea.As we speak, there are poor people paying upwards of 40%...per month! Now obviously we can’tblame conventional banks for everything that happens after they’ve made the initial loan. But wecan blame the power of compounded interest.”Interest, and the fact that you don’t need actual cash to lend money means that the original $10,000could keep passing hands until we pump out over $100,000 of artificial wealth. Artificial is right.How much actual cash is there? Only $10,000. With interest, we managed to turn $10,000 intomuch more. Speech: Why Islamic Finance? 9
  10. 10. www.EthicaInstitute.comNow what happens if the street vendors go out of business? Or the unemployed brother doesn’t findhis job? Or the credit co-op goes bankrupt?That’s right. Loans don’t get repaid. And if enough people can’t repay their loans, lenders get into allsorts of trouble. This vicious cycle sets off a domino effect of defaults.And imagine that instead of a $10,000 personal loan, it’s a million dollar business loan, or a billiondollar World Bank loan. Compounding interest grows so fast that borrowers are often unable torepay. People, economies, and the environment pay the price as we grow more desperate to meetrising debts.So are we surprised when billions of dollars vanish into thin air?Let’s take the example of the Islamic bank. With this $10,000 the Islamic bank only invests in actualassets and services. It might buy machinery, lease out a car, or invest in a small business. But,throughout, the transaction is always tied to a real asset or service.And this is the central point: we can’t simply “compound” assets and services like we cancompound interest-based loans. An asset or service can only have one buyer and one seller at anygiven time. Interest, on the other hand, allows cash to circulate and grow into enormous sums.That’s the difference between Islamic finance and conventional finance: the difference betweenbuying and selling something real and borrowing and lending something fleeting.In recent years we’ve witnessed the most dramatic global financial downturn seen in decades. Whatbegan as a housing bubble soon became a sub-prime credit crisis. And what many thought wouldremain a credit crisis soon spread into a global financial meltdown. It devastated every corner of theworld.And while these events affected most of us negatively, there was one silver lining: people finallygave a serious look at alternative forms of finance. And many people stopped believing that interestcould solve all problems.Understanding what caused these events serves as our starting point for understanding Islamicfinance, and how it differs from conventional finance.What conventional finance enables is the ability to sell money when there is no money. To sell assetsbefore there are any underlying assets. And to allow debts to grow unchecked while borrowersbecome more desperate.Interest creates an artificial money supply that isn’t backed by real assets. The result? Increasedinflation, heightened volatility, richer rich, and poorer poor.Let’s look at 3 practical examples that show just how Islamic finance is different from, and betterthan, conventional finance. And while Islamic finance parts ways with conventional finance onmore than just being interest-free, we’ll focus on interest in this talk. Speech: Why Islamic Finance? 10
  11. 11. www.EthicaInstitute.comWe’ll look at 3 people in 3 very different, real-world situations: the first is the leader of a developingcountry: President Obasanjo of Nigeria; the second is Nick, a homebuyer in the UK, and the third isFaisal, an American college student.Debt-Laden Country: NigeriaWe begin by quoting President Obasanjo who said these wordsafter the G8 summit in Okinawa in 2000: "All that we hadborrowed up to 1985 or 1986 was around $5 billion and we havepaid about $16 billion yet we are still being told that we oweabout $28 billion. That $28 billion came about because of theinjustice in the foreign creditors interest rates. If you ask me whatis the worst thing in the world, I will say it is compound interest."It seems unbelievable but, sadly, it’s typical. Developing countriesstart off with relatively small loans and remain saddled with hugeamounts of growing debt for generations. And remember, this could be Nigeria, or any other poorcountry. To give just one other example, during the years leading up to the 1997 Asian collapse,Indonesia’s foreign debt as a percentage of GDP was over 60%. So Nigeria is certainly not anisolated example. There are countless more.How did borrowing just $5 billion end up in having to pay $44 billion in total? Lets open up aspreadsheet and find out. For the sake of simplicity we’ll just grow $5 billion into $44 billionbetween 1985 and 2000 and see what interest rate we get. It mustve been a very high interest rateto get to $44 billion in such a short period of time. So let’s start off with 40% per annum. No thatsnot right.Table 1: $5 billion growing at 40% Year Debt 1985 5,000,000,000 1986 7,000,000,000 1987 9,800,000,000 - - 1997 283,469,561,876 1998 396,857,386,627 1999 555,600,341,278 2000 777,840,477,789 Speech: Why Islamic Finance? 11
  12. 12. www.EthicaInstitute.comLets try 30%. That still gives us a very high number.Table 2: $5 billion growing at 30% Year Debt 1985 5,000,000,000 1986 6,500,000,000 1987 8,450,000,000 1988 10,985,000,000 - - 1997 116,490,425,612 1998 151,437,553,296 1999 196,868,819,285 2000 255,929,465,070It turns out that to grow $5 billion into $44 billion takes an interest rate of only 15.6%. Now on theface of it around 15% doesnt sound exorbitant. It doesnt seem unfair, and technically it isnt evenillegal according to international law. In fact, we personally know of banks that charge high-riskcredits upwards of 30% interest rates. But every day numerous countries find themselves in the samepredicament as Nigeria.UNICEF estimates that over half a million children under the age of five die each year around theworld as a result of the debt crisis. But as we’ve seen, it’s not the debt that’s the problem. It’s thecompounding interest.Now how would Islamic finance handle things differently?Using the $5 billion example, Islamic banks could provide $5 billion of financing for infrastructure,literacy, healthcare, or sanitation programs, to name a few. • An Islamic bank could have arranged for the $4 billion construction of a natural gas pipeline and delivered it to Nigeria for $5 billion using an Istisna. • Or taken an equity stake in a highway project and shared in profits and losses using Musharakah or Mudarabah. • Or purchased commodities and sold them at a premium using a Murabaha. • Or structured a project financing using an Ijarah Sukuk. Speech: Why Islamic Finance? 12
  13. 13. www.EthicaInstitute.comThese names may sound new to you, but as we explain them in our training modules, they’re muchlike conventional equity, trade, and lease-based instruments already familiar to most bankers.Islamic finance, after all, permits legitimate profit.We’re not asking that everything be changed. Just the harmful parts, and eliminating interest wouldbe the first step.In all of these cases the bank could not have charged more than the initial financing premium. So ifthe Islamic bank was owed $5 billion, that could never turninto $44 billion or even $6 billion. The debt would have to befixed. Throughout our training modules we’ll show you howthese and other Islamic finance products operate.Lets take another example of how Islamic finance isdifferent from conventional finance. This time lets makeit a little bit more relevant to our day-to-day lives.Nick The HomebuyerNick has lost his job, his house, and all the moneyhe had spent paying off his mortgage.The property bubble that triggered the globalfinancial meltdown could not have happened if theproperties had been financed Islamically. Why?Because a conventional bank merely lends out cash. Legally,it can keep lending this cash over and over. Well above itsactual cash reserves.An Islamic bank, on the other hand, has to take directownership of an actual asset. Whether for a longer period in a lease or partnership, or a shorterperiod in a sale or trade, Islamic finance always limits the institution to an actual asset.The next time anyone wonders whether Islamic banking is just dressed up conventional banking, askthem to show you a single major consumer bank that co-owns actual properties with theircustomers.Of course, there’s no excuse for Islamic banks that are Islamic in name only. But if the transactioncomplies with internationally recognized standards like AAOIFI, for instance, then there’s no reasonfor it to have the many side effects associated with interest-based banking.To provide just one example of how Islamic banks get directly involved in asset purchases, let’s lookat how a Diminishing Musharakah works. The word Musharakah refers to a partnership in Islamicfinance. Speech: Why Islamic Finance? 13
  14. 14. www.EthicaInstitute.comAnd it’s called a Diminishing Musharakah because the banks equity keeps decreasing throughoutthe tenure of the financing, while the client’s ownership keeps increasing through a series of equitypurchases. Eventually, the client becomes the sole owner.If Nick had lost his job with a Diminishing Musharakah, at the very least he would still have anequity stake in an actual property that he could monetize.Pay close attention to this example because this is something you may want to suggest to your ownlocal bank. There’s no reason why they can’t do it.We’ve kept all the numbers and calculations very simple and straightforward for illustrationpurposes.Let’s take a $220,000 house. And let’s say the customer puts down $20,000 and finances theremaining $200,000 from the Islamic bank. Let’s also say that the financing lasts 20 years and thebank sets a 5% profit rate. For the sake of simplicity, we’ll make it 20 annual repayments.In the first column (see Table 3) we have the year. In the second column we have the homebuyer’sequity purchase, which is how much the buyer pays every year for buying the property’s actualequity. It’s his way of increasing his ownership in the property, while diminishing the bank’sownership, shown in the third column. The fourth column, called Rent, is what the homebuyer paysthe bank for that portion of the property he doesn’t yet own, a number that keeps decreasing as thebank’s share also decreases. The final column shows what the homebuyer pays in total every year.Let’s explain to you how we got these numbers, and how simple it is for most banks to put thistogether with just the will to take real ownership of an asset.Let’s go through each column one by one.The homebuyer’s equity purchase of $10,000 is a simple straight line calculation of the $200,000,divided by the number of years for the financing, 20 years. We subtract this $10,000 each year fromthe bank’s total balance, to get the next column, the bank’s ownership, which, as we see, keepsgoing down each year until the bank owns none of the property.Table 3: Nick’s Diminishing Musharakah Homebuyers Year Banks Ownership ($) Rent ($) Homebuyers Payment ($) Equity Purchase ($) 1 10,000 190,000 10,000 20,000 2 10,000 180,000 9,500 19,500 3 10,000 170,000 9,000 19,000 4 10,000 160,000 8,500 18,500 5 - - - - Speech: Why Islamic Finance? 14
  15. 15. www.EthicaInstitute.com Homebuyers Year Banks Ownership ($) Rent ($) Homebuyers Payment ($) Equity Purchase ($) 6 - - - - 7 - - - - 16 10,000 40,000 2,500 12,500 17 10,000 30,000 2,000 12,000 18 10,000 20,000 1,500 11,500 19 10,000 10,000 1,000 11,000 20 10,000 - 500 10,500Next, we calculate the homebuyer’s rent. This is equal to the bank’s ownership for that periodmultiplied by the bank’s profit rate. This number also keeps declining each year, because as thebank’s ownership declines, so does the homebuyer’s rent.Lastly, we calculate the homebuyer’s total annual payment. This is simply the homebuyer’s equitypurchase plus his rent. This number also keeps declining each year until the homebuyer eventuallybecomes the homeowner.At no time does the homebuyer pay any interest. And, certainly, at no time does any paymentcompound. The homebuyer just pays for two things: the house, in small payments, little by little. Andthe rent, for the portion of the house he doesn’t yet own.This simple structure is something that just about any conventional bank can offer today. It takes aleap of faith for banks accustomed to interest-based lending to suddenly become direct stakeholdersin property. But as the growth of Islamic banking shows, these concerns are misplaced. Call itIslamic finance, ethical finance, or conventional finance, when a bank takes real ownership of anasset, economies don’t fall apart like a house of cards.Faisal The StudentNow our final example. Talking about indebted countries and property bubbles may seem removedfrom our immediate predicament.What are we talking about? That’s right: personal debt. In the US alone, credit card holders haveamassed over $1 trillion of personal debt. And that’s just credit cards.Lets take Faisal’s student loan for example. Speech: Why Islamic Finance? 15
  16. 16. www.EthicaInstitute.comHis education cost him about $30,000 a year forfour years. Thats $120,000. And Faisal had nosavings to start off with. He got an interest rate of10%, which is fairly typical for many students,and he began borrowing $30,000 at the beginningof each year. Three years after graduation hebegan paying off his student loans at the rate of$20,000 per year.Can you guess how long it took Faisal to pay offhis entire loan?That’s right. It’ll take him over 25 years to pay offhis loan.And in the end he spends over $400,000 to pay for his $120,000 education. And that’s assumingFaisal keeps his well-paying job. If he’s unemployed, the debt just gets bigger.An Islamic bank, on the other hand, could structure a service-based Ijarah to lease out theuniversity’s credit hours. Faisal ends up paying about 20% or 30% more; but with the interest-basedloan, he pays about 400% more.Islamic finance never can, and never will be able to grow Faisal’s debt once it’s fixed.Principles of Islamic FinanceLet’s now step back for a moment and ask: so how does Islamic finance make any money?Let’s take a moment to compare banking in general with Islamic finance.All banking products can largely be divided into the following 4 categories: 1. Equity 2. Trading 3. Leasing, and 4. DebtEquity refers to direct ownership, trading refers to buying and selling, leasing refers to giving an assetor service out on rent, and debt refers to providing an interest-based loan.Simply put, Islamic finance permits equity, trade, and lease-based transactions, but forbids debt.And in many ways we’re already familiar with these kinds of transactions. Here’s most of Islamicfinance in a nutshell: • Mudarabah, Musharakah, and Sukuk are all equity based Speech: Why Islamic Finance? 16
  17. 17. www.EthicaInstitute.com • Murabaha, Salam, and Istisna are trade based • And Ijarahs are lease basedLet’s look at some of the basic principles that guide Islamic banks.These are that transactions must: 1. Be interest free 2. Have risk sharing and asset and service backing 3. Have contractual certainty 4. And that all the elements of the transaction must, in and of themselves, be ethicalLet’s look at each of these 4 guiding principles.First, the transaction must be free of interest.The Islamic ban on interest is not new. For centuries banned by Christians and Jews, the Shariah, orIslamic Law, prohibits paying or earning interest, irrespective of whether it is a soft, developmentloan or a monthly consumption loan.In fact the Vatican itself has said, “The ethical principles on which Islamic finance is based maybring banks closer to their clients and to the true spirit which should mark every financial service.”The examples we’ve seen clearly show the harms of interest, not only to banks and governments butalso to individuals. Islam is concerned with the well-being of society, sometimes at the immediateexpense of the individual. A single interest-based loan may seem harmless, but an entire economybased on interest can have devastating consequences.The second principle that governs Islamic finance transactions is the element of risk sharing andasset and service backing.The central juristic principle in the Shariah that informs our concept of risk-sharing states: “al ghunmbil ghurm,” meaning “there is no return without risk.”Bankers know that the concept of risk sharing is common to all equity-based transactions. Islamicfinance is no different, where profit and loss distribution is commensurate with investmentproportions.Lending cash on interest is not the kind of risk sharing we’re talking about. In a conventional loanthe bank doesn’t directly involve itself in how the cash is spent. Here’s the cash. See you in a fewmonths with some extra cash. That’s all. Even with a secured loan, in which the bank takes securityand gets more involved, there is still no direct equity position. The bank still doesn’t own anything.An Islamic bank, on the other hand, actually takes a direct equity position, or buys a particular asset Speech: Why Islamic Finance? 17
  18. 18. www.EthicaInstitute.comand charges a premium through a trade or a lease. It uses risk mitigants, but not without first takingownership risk.There must also be contractual certainty.Contracts play a central role in Islam. And the uncertainty of whether a contractual condition will befulfilled or not is unacceptable in the Shariah.Contractual uncertainty happens when the basic prerequisite or integral of a contract is absent, suchas the existence of the subject matter, the fixing of a delivery date, or the agreement on a price.Conventional insurance, interest, futures and options all contain an element of contractualuncertainty and are thus prohibited.And lastly, Islamic finance transactions must be ethical, which means that there is no buying, selling,or trading in anything that is, in and of itself, impermissible according to the Shariah. Examplesinclude dealing in conventional banking and insurance, alcohol, and tobacco.With these basic principles in mind, we invite you to try our introductory training modules beforeprogressing onto more advanced topics. At Ethica Institute you learn at your own pace. Play, pause,stop. Anytime, anywhere.We blend live online training sessions and webinars with convenient e-learning modules, casestudies, quizzes, and the world’s largest database of Q&As available online. We bridge the gapbetween scholars and bankers by mixing theory with practical examples; by complementingauthentic Shariah knowledge with real-world banking expertise. And we ensure that everything youlearn complies with the Accounting and Auditing Organization of Islamic Financial Institution’s, orAAOIFI’s, latest Shariah Standards.And best of all, we provide you with the only Islamic finance certificate available 100% online.We look forward to you joining the Islamic finance community. We look forward to seeing you atEthicaInstitute.com. Speech: Why Islamic Finance? 18
  19. 19. www.EthicaInstitute.comCONTACT ETHICAEthica Institute of Islamic FinanceLevel 14, Boulevard Plaza - Tower OneEmaar Boulevard, Downtown DubaiPO Box 127150, Dubai, UAEEmails are responded to within the same workingday, usually in a few hours.New inquiries about Ethicas training andcertification:contact@ethicainstitute.comTechnical help:support@ethicainstitute.comIslamic finance questions:questions@ethicainstitute.comWe take calls Sunday to Thursday from 9am to5pm Dubai time:+9714 455 8690Fax? If you insist:+9714 455 8556This version is only a preview. You may download the full 700 pageoriginal e-book from: http://bit.ly/EthicaEbook.Click here to receive regular updates and the 2014 edition of Ethica’sHandbook of Islamic Finance. Contact Ethica 19

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