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Islamic Finance in the Digital Age
This book investigates the integration of emerging technologies within Islamic finance, reconciling Islamic values with contemporary financial innovations and ensuring ethical integrity in the face of rapid digital transformation. It delves into the challenges and opportunities posed by 21st-century technological advancements, including decentralized finance and AI.
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Critical Acclaim
Contents
More Information
This book investigates the integration of emerging technologies within Islamic finance, reconciling Islamic values with contemporary financial innovations and ensuring ethical integrity in the face of rapid digital transformation.
Islamic Finance in the Digital Age delves into the challenges and opportunities posed by 21st-century technological advancements, including decentralized finance and AI. Furthermore, it examines the theoretical foundations of Islamic finance, compliance with Shariah law, and innovative finance solutions, advocating for a maqasid-centric approach to leveraging the benefits of digitalization. Featuring insights from leading experts, the book provides a forward-thinking perspective to guide the Islamic finance industry towards a sustainable, prosperous, and ethically grounded future.
This book is a crucial reference for students and scholars of financial economics and regulation, and Islamic economics and finance. It is also beneficial for practitioners and policymakers in the financial sector.
Islamic Finance in the Digital Age delves into the challenges and opportunities posed by 21st-century technological advancements, including decentralized finance and AI. Furthermore, it examines the theoretical foundations of Islamic finance, compliance with Shariah law, and innovative finance solutions, advocating for a maqasid-centric approach to leveraging the benefits of digitalization. Featuring insights from leading experts, the book provides a forward-thinking perspective to guide the Islamic finance industry towards a sustainable, prosperous, and ethically grounded future.
This book is a crucial reference for students and scholars of financial economics and regulation, and Islamic economics and finance. It is also beneficial for practitioners and policymakers in the financial sector.
Critical Acclaim
‘This book addresses a wide range of emerging topics in a fast-changing financial landscape and provides intellectual discourse from Islamic economics and finance perspectives. Given the diversity of topics addressed, I find this book as one of the pioneering efforts to tackle complex issues highlighting the potential of the role and contribution of principles of Islamic finance to the emerging FinTech industry. I congratulate the editors and the contributing authors for making a valuable contribution to Islamic finance literature.’
– Zamir Iqbal, Islamic Development Bank, Saudi Arabia
‘The digital age is bringing about significant advancements in financial services, including Islamic banking and finance, making it more accessible, efficient, and Shariah-compliant. This edited book is a good compendium for understanding the integration of emerging technologies in Islamic finance and harmonizing Islamic values with groundbreaking financial innovations. Kudos to the authors and the editors.’
– Nafis Alam, Monash University Malaysia
– Zamir Iqbal, Islamic Development Bank, Saudi Arabia
‘The digital age is bringing about significant advancements in financial services, including Islamic banking and finance, making it more accessible, efficient, and Shariah-compliant. This edited book is a good compendium for understanding the integration of emerging technologies in Islamic finance and harmonizing Islamic values with groundbreaking financial innovations. Kudos to the authors and the editors.’
– Nafis Alam, Monash University Malaysia
Contents
Contents
Preface xvi
Acknowledgements xviii
1 Islamic finance in the age of digital transformation: an
introduction 1
Syed Nazim Ali and Zul Hakim Jumat
PART I ISLAMIC FINANCE IN THE DIGITAL AGE:
THEORETICAL AND CONCEPTUAL FOUNDATIONS
2 Al-iqtisad al-wasati: a finance vision for the ummah 9
Mohamed Aslam Haneef and Riasat Amin Imon
3 Scarcity or abundance: why having so much means too
little—Islamic economics and the search for its methodology 36
Wahabalbari Amir Ahmed
4 Monetary policy and inequality: conceptual framework
and preliminary evidence 53
Sajid Amin Javed and Aqsa Naveed
5 The theory of money: an analysis of cryptocurrency in
a faith-based finance paradigm 73
Samir Alamad
6 Cryptoassets as property (maal): Islamic legal and ethical
foundations and evaluative framework 102
Habib Ahmed
7 Do regulatory sandboxes help achieve the goals (maqasid)
of al-Shariah better? Case of the Islamic fintech sector 125
Mohammed Obaidullah
PART II EMERGING FINANCIAL TECHNOLOGIES
AND SHARIAH COMPLIANCE
8 Islamic cryptoassets: model structure, operational
mechanisms, and Shariah review 133
Mohd Ma’Sum Billah
9 Crypto staking from the Shariah perspective 149
Farukh Habib and Ahmed Jawa
10 Financial applications of artificial intelligence: Shariah
issues and maqasid considerations 164
Abdulazeem Abozaid
11 Non-fungible tokens (NFTs) from fiqh and maqasid perspectives 189
Gapur Oziev and Abdulazeem Abozaid
12 How Islamic are the services offered by Islamic P2P
financing fintech companies? An observation from Indonesia 208
Miranti Kartika Dewi, Wasilah, Evony Silvino Violita, and
Sri Nurhayati
PART III EMERGING FINANCIAL TOOLS AND
APPLICATIONS: ISLAMIC FINANCE
SOLUTIONS AND OPPORTUNITIES
13 An empirical evaluation of blockchain technology:
challenges and opportunities for Islamic cryptoassets 224
Asif Zaman, Mushtaq Hussain Khan, and Zheyi Zhu
14 Central bank digital currencies, Internet of Things, and
blockchain: prospects and challenges for Islamic finance 249
Khalid Ahmed Al-Ansari and Ahmet Faruk Aysan
15 Decentralized Islamic finance: blockchain as a cure for the
murabaha syndrome 281
Youcef Maouchi
16 Islamic finance in the metaverse: meta-finance
frameworks for supporting the growth of
Shariah-compliant finance options in the metaspace 300
Klemens Katterbauer, Hassan Syed, Laurent Cleenewerck,
and Sema Yilmaz Genc
17 A critical appraisal of the Sovereign Green Islamic Bond:
case study in Indonesia 314
Nisful Laila, Raditya Sukmana, Dwi Irianti Hadiningdyah,
Dian Agustia, and Indah Rahmawati
18 Digitalization of the Islamic social economy: new
paradigms for maximizing social welfare 344
Hatim El-Tahir
19 Digital Islamic social finance in Indonesia: an
intergenerational analysis 360
Rahmatina Awaliah Kasri and Meis Winih Sosianti
20 Gig and platform economy: the next big opportunity for
mutuals and takaful in India? 385
Umar Farooq Patel, Shariq Nisar, and C.R. Chavan
Index 404
Preface xvi
Acknowledgements xviii
1 Islamic finance in the age of digital transformation: an
introduction 1
Syed Nazim Ali and Zul Hakim Jumat
PART I ISLAMIC FINANCE IN THE DIGITAL AGE:
THEORETICAL AND CONCEPTUAL FOUNDATIONS
2 Al-iqtisad al-wasati: a finance vision for the ummah 9
Mohamed Aslam Haneef and Riasat Amin Imon
3 Scarcity or abundance: why having so much means too
little—Islamic economics and the search for its methodology 36
Wahabalbari Amir Ahmed
4 Monetary policy and inequality: conceptual framework
and preliminary evidence 53
Sajid Amin Javed and Aqsa Naveed
5 The theory of money: an analysis of cryptocurrency in
a faith-based finance paradigm 73
Samir Alamad
6 Cryptoassets as property (maal): Islamic legal and ethical
foundations and evaluative framework 102
Habib Ahmed
7 Do regulatory sandboxes help achieve the goals (maqasid)
of al-Shariah better? Case of the Islamic fintech sector 125
Mohammed Obaidullah
PART II EMERGING FINANCIAL TECHNOLOGIES
AND SHARIAH COMPLIANCE
8 Islamic cryptoassets: model structure, operational
mechanisms, and Shariah review 133
Mohd Ma’Sum Billah
9 Crypto staking from the Shariah perspective 149
Farukh Habib and Ahmed Jawa
10 Financial applications of artificial intelligence: Shariah
issues and maqasid considerations 164
Abdulazeem Abozaid
11 Non-fungible tokens (NFTs) from fiqh and maqasid perspectives 189
Gapur Oziev and Abdulazeem Abozaid
12 How Islamic are the services offered by Islamic P2P
financing fintech companies? An observation from Indonesia 208
Miranti Kartika Dewi, Wasilah, Evony Silvino Violita, and
Sri Nurhayati
PART III EMERGING FINANCIAL TOOLS AND
APPLICATIONS: ISLAMIC FINANCE
SOLUTIONS AND OPPORTUNITIES
13 An empirical evaluation of blockchain technology:
challenges and opportunities for Islamic cryptoassets 224
Asif Zaman, Mushtaq Hussain Khan, and Zheyi Zhu
14 Central bank digital currencies, Internet of Things, and
blockchain: prospects and challenges for Islamic finance 249
Khalid Ahmed Al-Ansari and Ahmet Faruk Aysan
15 Decentralized Islamic finance: blockchain as a cure for the
murabaha syndrome 281
Youcef Maouchi
16 Islamic finance in the metaverse: meta-finance
frameworks for supporting the growth of
Shariah-compliant finance options in the metaspace 300
Klemens Katterbauer, Hassan Syed, Laurent Cleenewerck,
and Sema Yilmaz Genc
17 A critical appraisal of the Sovereign Green Islamic Bond:
case study in Indonesia 314
Nisful Laila, Raditya Sukmana, Dwi Irianti Hadiningdyah,
Dian Agustia, and Indah Rahmawati
18 Digitalization of the Islamic social economy: new
paradigms for maximizing social welfare 344
Hatim El-Tahir
19 Digital Islamic social finance in Indonesia: an
intergenerational analysis 360
Rahmatina Awaliah Kasri and Meis Winih Sosianti
20 Gig and platform economy: the next big opportunity for
mutuals and takaful in India? 385
Umar Farooq Patel, Shariq Nisar, and C.R. Chavan
Index 404
