sba photo shafiqur rahman

Dr. Shafiqur Rahman, Ph.D., MBA


Professor of Banking and Finance
Portland State University 
Portland, OR 97207-0751


White Paper:

Evaluating Investment Performance of Portfolio Managers


Research Papers:

Investment in Stock Market: Halal Investing and Zakat on Stocks

This paper examines how Muslim investors can invest in the contemporary stock market in a way fully compatible with the letter and spirit of divine Islamic law or shariah and how his or her investment is considered for zakat – a religious obligation to donate to the poor and needy a certain percentage of wealth. The paper discusses a qualitative screening process to identify stocks of companies that are engaged in business or activities permissible (halal) in Islam and a quantitative screening process utilizing financial ratio analysis to allow companies in permissible business to use a tolerable level of interest-bearing securities and associated interest income and expenses. Stocks of companies passing these tests are designated as shariah-compliant stocks and these stocks form the investment opportunity set for Muslim investors. The paper then discusses how to cleanse investment income from shariah-compliant stocks contaminated by income from impermissible (haram) sources and two opinions of Islamic jurists and shariah scholars regarding how to treat investment in stocks for zakat calculation........Download pdf


Zakat on Retirement and Pension Plans

This paper compares and contrasts alternative pension plans in the market place and their status as zakatable wealth or property. These plans differ in terms of who is responsible for providing funds for pension benefit to the retirees upon retirement and who is responsible for bearing investment risk. Whether a pension plan is subject to zakat immediately or upon receipt at retirement depends on immediate accessibility to and ownership of the funds in the account. It makes no difference whether employer and/or the employee is (are) responsible for funding the plan and who bears the investment risk. There is consensus among Muslim jurists and shariah scholars that mandatory plans offered as a part of compensation and benefit package for a job are subject to zakat when money is received upon retirement and non-mandatory plans offered as replacement for or supplement to employer-sponsored plans with voluntary employee participation are subject to zakat in each year of employment...........Download pdf



Maulana Justice Taqi Usmani

Islamic Finance by Maulana Justice Taqi Usmani is available now for download in .zip format. Book covers the following aspects of financial operations:

  • Musharakah;
  • Mudarabah;
  • Combination of Musharakah and Mudarabah;
  • Some objection on Musharakah Financing;
  • Diminishing Musharakah;
  • Murabahah;
  • Some Issues involved in Murabahah;
  • Ijarah;
  • Salam and Istina;
  • Principles of Shari'ah, Governing Islamic Investment Funds;
  • The principle of Limited Liability.

(download the book: "", 158Kb)

Prof. Dr. Zubair Hasan - INCEIF

Theory of Profit, Vikas Publishing House, New Delhi 1975.

Introduction to MICROECONOMICS: An Islamic Perspective
Pearson Prentice Hall, Malaysia 2006 (Reprinted 2007).

Macroeconomics, Oxford University Press, October 2009.


Articles are organized either by author or by subject.

White papers and articles can be sumbitted for inclusion in our library by emailing them to This email address is being protected from spambots. You need JavaScript enabled to view it. .

By Author

Zubair Hasan
Mahmoud El Gamal
Mughees Shaukat
Obiyathulla Ismath Bacha
Muhammad Rizwan-ul Haque

By Subject

Islamic Banking
General Islamic Finance

Government Documents

Two interpretive letters from the Office of the Comptroller of the Currency (OCC):

OCC, "Letter states that United Bank of Kuwait's Federal Branch may enter into leases of real estate to serve the home finance needs of its Muslim customers, who are prohibited by religious principles from obtaining traditional mortgages" (pdf), Interpretive Letter 806, December 1997.

• Download this file as .pdf (OCC), 64Kb

OCC, "Islamic Murabaha financing transactions, whereby a national bank acquires the property on behalf of the customer and then resells the property to the customer at a mark up on an installment basis, are permissible for national banks as part of the business of banking", Interpretive Letter 867, November 1999

• Download this file as .pdf (OCC), 48Kb

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