Author Profile

Nicholas White is a distinguished economist, financial strategist, and leading academic authority in the field of global finance, specializing in the mechanics, law, and application of Sharia-compliant financial systems. With over two decades of experience spanning both Western capital markets and Islamic financial hubs in the Middle East and Southeast Asia, White bridges the gap between conventional economic theories and the ethical frameworks of Islamic jurisprudence. He holds a Ph.D. in International Finance and Economics from the London School of Economics (LSE), where his doctoral research focused on the comparative stability of asset-backed financial instruments against conventional debt-based models. Recognizing early in his career the rapid globalization of Islamic capital, he went on to earn a Master of Laws (LL.M.) in Islamic Commercial Law from the University of Jordan, mastering the foundational principles of Fiqh al-Muamalat (Islamic jurisprudence governing commercial transactions). He is also a certified Islamic Markets Professional and has served as a senior advisor to central banks, multilateral development institutions, and sovereign wealth funds on the structuring of sovereign Sukuk (Islamic bonds) and the implementation of regulatory frameworks for Islamic windows in conventional banks. Throughout his career, White has been a dedicated educator and researcher. He currently serves as a Professor of Practice in Global Islamic Finance at a prestigious international university, where he designs postgraduate curricula aimed at training the next generation of ethical finance leaders. His extensive fieldwork and consultations with prominent Sharia boards have given him a rare, practical insight into the real-world operational challenges of modern Islamic banking.

About The Book

In an era of recurring global economic shifts, high inflation, and volatile financial markets, the search for ethical, resilient, and equity-based financial systems has intensified. Introduction to Islamic Finance and Banking serves as the definitive gateway to understanding one of the fastest-growing sectors in the global financial landscape. Moving far beyond the mechanics of conventional, interest-based banking, this comprehensive text delivers a deep dive into a system anchored by moral philosophy, shared risk, and social justice. At its core, this book demystifies how a multi-trillion-dollar global industry operates entirely without the concept of Riba (usury/interest). It bridges the gap between ancient ethical frameworks and modern economic realities, proving that finance can be both highly profitable and socially responsible. The book provides a systematic, highly structured breakdown of the foundational principles that govern all Islamic financial transactions. A thorough investigation into why interest is prohibited and how the system replaces it with asset-backed, value-creating economic activities. How Islamic law mandates absolute transparency, contract clarity, and the strict prohibition of speculative execution or deceptive risk. An analysis of the foundational philosophy that capital providers and entrepreneurs must share both the risks and the rewards of an enterprise. The strict ethical filtering process that bars investments in harmful industries such as alcohol, gambling, weapons, and highly leveraged conventional institutions. This book illustrates how Islamic finance anchors every dollar to a real, tangible asset, creating an inherent buffer against artificial market bubbles and economic crashes.

Table of Contents

Preface
Chapter 1. Principles of Islamic Finance Overview
Prohibition of Riba and its Rationale
Murabaha as Cost-Plus Financing
Shariah Supervisory Boards and their Role
Chapter 2. Prohibition of Interest Riba Explained
Riba Defined as Prohibited Increase in Islamic Law
Trade and Commerce Permitted as Alternative
Musharakah as Joint Venture Partnership
Challenges in Implementation of Islamic Finance
Chapter 3. Risk-Sharing in Islamic Finance
Prohibition of Riba and its Risk Implications
Risk-Sharing in Microfinance and Poverty Alleviation
Challenges in Implementing Risk-Sharing
Chapter 4. Ethical and Moral Foundations
Principles of Islamic Economics
Prohibition of Gharar and its Implications
Objectives of Islamic Law in Financial Matters
Ethics of Investment and Social Responsibility
Environmental Ethics of Islamic Finance
Ethics of Financial Inclusion
Continuing Development of Islamic Financial Ethics
Chapter 5. Mudarabah Profit-Sharing Contract
Mudarabah Contract Definition and Fundamental Principles
Comparison of Mudarabah with other Islamic Contracts
Mudarabah and Economic Development
Future Prospects for Mudarabah in Islamic Finance
Chapter 6. Musharakah Joint Venture Structure
Conceptual Foundations of Musharakah in Islamic Law
Project Musharakah and Large-Scale Financing
Risk Management in Musharakah
Legal and Regulatory Framework for Musharakah
Chapter 7. Murabahah Cost-Plus Financing
Classical Foundations of Murabahah in Islamic Law
Consumer Financing through Murabahah
Accounting Treatment and Financial Reporting
Chapter 8. Ijarah Leasing Arrangements
Conceptual Foundation of Ijarah in Islamic Commercial Law
Modern Ijarah Structures in Islamic Banking
Ijarah Documentation and Legal Requirements
Ijarah Pricing Methodologies and Benchmarking
Ijarah Documentation Standards and Industry Best Practices
Ijarah in Islamic Microfinance Applications
Ijarah and Social Responsibility
Ijarah and Strategic Planning
Chapter 9. Salam Forward Sale Contracts
Prophetic Authorization and Historical Context
Differences between Salam and Conventional Futures
Default and Remedies in Salam Contracts
Salam and Agricultural Development
Salam and Tawarruq Distinctions
Chapter 10. Istisna Manufacturing Contracts
Historical Origins and Development of Istisna
Delivery Terms and Specifications in Istisna
Agriculture and Food Processing Applications
Pricing and Profit Calculation in Istisna
Future Prospects for Istisna in Islamic Finance
Chapter 11. Sukuk Islamic Bonds Structure
Ijarah Sukuk as Lease-Based Structures
Sukuk Issuance Process and Participants
Sukuk in Sovereign and Corporate Finance
Chapter 12. Takaful Islamic Insurance System
Shariah Basis for Takaful Operations
Investment of Takaful Funds
Takaful and Financial Inclusion
Chapter 13. Islamic Banking Operations Model
Foundational Structure of Islamic Banking Operations
Mudarabah Financing Operations
Human Capital and Organizational Operations
Chapter 14. Sharia Compliance and Governance
Sources of Shariah Governing Financial Transactions
Qualifications and Independence of Shariah Scholars
Differences among Shariah Schools and their Impact
Disclosure and Transparency Requirements
Challenges in Shariah Governance
Evolution of Shariah Governance Standards
Chapter 15. Risk Management in Islamic Banks
Credit Risk in Islamic Financing Contracts
Operational Risk and Shariah Compliance
Risk Management in Islamic Retailing Banking
Risk Management and Financial Stability
Chapter 16. Islamic Capital Markets Development
Foundations of Islamic Capital Markets
Islamic Real Estate Investment Trusts
Sovereign Sukuk and Public Finance
Challenges Facing Islamic Capital Markets
Chapter 17. Conventional vs. Islamic Banking Comparison
Foundational Principles of Conventional Banking
Governance and Supervision Structures
Ethical and Social Dimensions
Financial Inclusion and Islamic Banking
Chapter 18. Regulatory Framework for Islamic Finance
Sources of Islamic Finance Regulation
AAOIFI Standards and their Role in Harmonization
Risk Management Framework for Islamic Financial Institutions
Fintech and Digital Innovation Regulation
Sustainable Finance Integration in Islamic Regulation
Bibliography
Index