Islamic financial services

Islamic finance is one of the fastest growing segments of global financial industry. In some countries, it has become systemically important and, in many others, it is too big to be ignored.Islamic finance is based on shariah, an Arabic term that often is translated to “Islamic law.”Shariah provides guidelines for aspects of Muslim life, including religion, politics, economics,banking, business, and law.The basic sources of Shari’ah are the Qur’an and the Sunna, which are followed by the consensus of the jurists and interpreters of Islamic law.
The central feature of the Islamic finance system is the prohibition in the Qur’an of the payment and receipt of interest (or riba). Islamic finance is a rapidly growing industry. While it represents a small proportion of the global finance market (estimated at 1%-5% of global share), the Islamic finance industry has experienced double-digit rates of growth annually in recent years (estimated at 10%- 20% annual growth). Industry experts estimate that assets held under Islamic finance management doubled between 2007 and 2010 to reach around $1 trillion.
This paper tries to note the main Principal of Islamic finance. In addition to discuss the Improvement can be made in several areas to promote and enhance the providing Islamic financial services.

This book gives an overall insight for those who have interest in the field of Islamic financial services. This book answers some of the questions that are often asked regarding this field: Are Islamic financial product and services similar to those that are being offered by the conventional financial institutions? How Muslim society can participate extensively in this field? Are Islamic financial product and services provide better alternatives for Muslims to manage their financial needs? This book helps to provide clearer understanding on the issues pertaining Islamic financial product and services. It is suitable as a reference for students, practitioners and those who wanted to learn more on this issues.

In Malaysia, the government’s halal policies are continuously enhanced to benefit the Muslim end–consumers particularly and Malaysians as a whole. The proposed study aims to investigate key influential factors affecting consumers’ adoption of a product compliant behaviour. Specifically, it embarks on a previously unexplored discipline of financial consumer behaviour and may provide insightful contributions towards understanding consumers’ needs of engaging in a permissible act of financial product and/or service consumption. Drawing from the Theory of Planned Behaviour, this study aims to establish an integral research framework towards understanding key influential factors impacting consumers’ adoption process. Psychological factors such as attitude, subjective norms and perceived behavioural control deem to influence one’s intention to accept halal compliant financial product behaviour. In addition, other underlying constructs such as religiosity, knowledge postulate to affect consumers’ attitude towards financial product. By addressing and predicting such traits, financial marketers expect to educate and stimulate targeted consumers in seeking halal compliant financial related products. Subsequently, this will further elicit future financial product innovation amongst marketers within the financial service sectors.

The need for Islamic accounting that deals with Islamic financial instruments has prompted AAOIFI recently to introduce Financial Accounting Standard No. 17 on investments in securities (AAOIFI FAS 17, 2003). The need for a codified Islamic accounting standard are ...