Faith, Value, and Risk: Principles and Practice of the Islamic Financial System

Faith, Value, and Risk: Principles and Practice of the Islamic Financial System provides a broad and structured examination of Islamic finance, from its foundations in Islamic jurisprudence to its contemporary applications in banking, investment, insurance, social finance, technology, and global markets. The book begins by establishing the historical and intellectual foundations of Islamic finance and explaining the role of fiqh in shaping financial principles and practices. It then examines the system's fundamental contractual structures, including mudarabah and musharakah, and considers the distinctive importance of risk sharing and responsible financial relationships. A central theme throughout the book is the relationship between financial activity and ethical responsibility. The discussion addresses key Islamic financial principles and the prohibitions associated with riba, gharar, and maysir, while exploring their implications for contemporary transactions and financial design. The analysis then moves into the institutions and mechanisms through which Islamic finance operates. Topics include Shariah governance and legal compliance, Islamic banking and retail finance, Islamic capital markets and sukuk, and takaful insurance. The book also explores the social dimension of the Islamic financial system through zakat, wealth redistribution, and social finance. Contemporary developments receive substantial attention. The relationship between Islamic finance and environmental, social, and governance (ESG) principles is examined alongside developments in financial technology, including blockchain and digital assets. The book also considers regulatory environments and global adoption, strategic implementation for Islamic financial institutions, and the challenges associated with Shariah non-compliance and financial risk. The final chapter looks toward future trends and strategic possibilities, considering emerging markets and innovation pathways. Faith, value, and risk will appeal to readers who want to understand Islamic finance as a comprehensive system rather than as a collection of specialised financial products. It offers useful perspectives for students, researchers, financial practitioners, policymakers, entrepreneurs, and anyone interested in the relationship between Islamic values, economic activity, financial risk, and institutional innovation.