Product Development in Islamic Banks

This book systematically studies the process of developing Islamic financial products for banks.Islamic banking began in the 1970s with the aim of providing financial services compatible with Islamic law. Driven by market forces it has grown rapidly in both Muslim countries and also in international financial sectors. It is projected to grow at an annual rate of 15-20% and a key factor that will determine this future growth will be the availability of new products that will satisfy the needs of various segments of society.While other texts on the market discuss the basic principles and contracts used in Islamic banking and finance, few discuss how these can be used to develop financial products. This book fills that gap, starting with the basic principles that form the building blocks of contemporary Islamic financial products and then discussing the more intricate issues relating to product development processes. It discusses the different stages of the product development cycle in detail and includes case studies showing the structures of various products. The book also critically evaluates the issues related to product development including the types of products used by Islamic banks and the approaches adopted in developing them.

Habib Ahmed is the Sharjah Chair in Islamic Law and Finance at the University of Durham. Prior to holding this post he worked at the National Commercial Bank and Islamic Research and Training Institute in Saudi Arabia. He is author and editor of numerous papers and books on Islamic economics and finance including Issues in Islamic Corporate Finance (2007) and Operational Format for Islamic Equity Finance (2005).