It is important to remember that Islamic finance is about sharing both risks and rewards.  Legitimate profit can be made by having the investor and the investee enter into business together.  Many non-Muslim investors, as well as Muslim investors, are attracted to Halal finance because of it is ethical investing.  Investors don’t want to be loan sharks.  Businesses that need financing do not want to deal with usury.  This is why Australia is excited about the prospect of Islamic financial institutions investing in their nation, not just because it is such a large potential source of capital: 

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Tags: islamic finance | Australia

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IHI chairman Mohammad Rahman and board member John Foster were quoted in a piece about Dubai’s debt crisis and Islamic finance on PRI’s the World. Mohammad and John explain how Islamic finance failed to protect investors from the global economic crisis. You can listen to the full story here, on PRI’s the World.

Tags: financial crisis | rahman | foster | dubai

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Tun Dr. Mahathir Mohamad Center for Islamic Finance chairman Mohammad Rahman was quoted in an article by John Foster about the missed opportunities for Islamic finance in the recent economic crisis. “When Western banking collapsed, one sector should have escaped unscathed: Islamic banking,” says Mohammad Saeed Rahman, “Technically, Islamic banks should have sidestepped the falling grand piano…The industry was not allowed exposure to CDOs, derivative products and the kind of intra-financial counter party risk that crippled the conventional banks. It couldn’t play the sub-prime mortgage game, was backed by real money in the form of petro-dollars and manufacturing export receipts. It was simple, straightforward banking.” You can find the full story on the BBC website.

Tags: financial crisis | islamic banking | rahman | foster

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I’d like to introduce everyone to IHI’s newest board member, John Foster. John is a financial media professional who has worked across both the media and the financial services industries and has international exposure. He understands all aspects of the media as well as having extensive knowledge of investment banking, socially responsible investment and Islamic finance. While educated in the West, he has extensive professional experience in the Middle East and understands the need to translate western financial instruments and concepts into Islamic terms, so that the Islamic world can participate more fully in the global economy. He is very excited to be joining IHI and contributing to our knowledge base. The following post is a article he wrote for Islamic Business & Finance about Islamic Financial Indexes.

Tags: islamic funds | foster

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Hello, and welcome to the blog for the Institute of Halal Investing. Here we will share news from the Center and the world of Islamic finance. We are committed to demystifying Islamic finance among both Muslims and non-Muslims by providing research on Shari’ah-compliant financial products. This blog will be a place where ideas and events that change how the world approaches finance can be illustrated and discussed.

The irresponsible lending practices that culminated in the recent economic crisis have brought much attention to alternative, more ethical methods of finance. In recent years, financial practices have become increasingly reliant upon ethically questionable methods and prioritizing individual gains over sustainable growth.

Now more than ever, it is essential we strive to create equity through sustainable lending principles. Halal investment has emerged as a way to create and sustain financial and economic growth through equity based investment according to a set of specific guidelines. Islamic finance is a fast growing financial sector, with Islamic finance institutions estimated to manage between $300 and $750 billion worldwide, growing at 15 percent per year.

This blog will explore the structure and nuances of Halal finance, as well discuss current events in Islamic finance. Welcome, and we hope to see you frequently!

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Today we launch a new website for our Center for Islamic Finance. Please stay tuned as many more features will be available soon. It is our hope that this website can serve a global community of the many people interested in exploring Islamic finance and halal investing.

Tags: islam | finance | website

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