Islamic structured investment: an example and critical analysis
This paper discusses in detail one example of an Islamic structured investment product. The said product is used as an illustration to highlight some issues deemed critical in the development of the wider Islamic finance space. The author humbly submits that convoluted structures, quite common in...
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
International Islamic University Malaysia
2019
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| Online Access: | http://irep.iium.edu.my/73487/ http://irep.iium.edu.my/73487/9/73487%20Islamic%20Structured%20Investment%20-Abstract.pdf http://irep.iium.edu.my/73487/10/73487%20Islamic%20Structured%20Investment.pdf |
| _version_ | 1848787805915840512 |
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| author | Mustaffa Kamil, Nazrol Kamil |
| author_facet | Mustaffa Kamil, Nazrol Kamil |
| author_sort | Mustaffa Kamil, Nazrol Kamil |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper discusses in detail one example of an Islamic structured investment product. The said
product is used as an illustration to highlight some issues deemed critical in the development of the
wider Islamic finance space. The author humbly submits that convoluted structures, quite common in
contemporary Islamic finance, are generally not healthy for the industry and its stakeholders. Opacity
in financial dealings not only increases the cost of doing business, it makes risk assessment and
management that much more challenging, to both transacting parties and regulators. Some additional
perspectives related to the polemic on the practice of tawarruq are also offered. Finally, some thoughts
on the widespread usage of wa’d as a somewhat indispensable tool in structuring contemporary Islamic
financial instruments as well as the attitude towards risk inherent in structured products vis-à-vis a
reasoned Islamic risk-return paradigm are deliberated upon. |
| first_indexed | 2025-11-14T17:30:46Z |
| format | Proceeding Paper |
| id | iium-73487 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T17:30:46Z |
| publishDate | 2019 |
| publisher | International Islamic University Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-734872019-11-01T00:20:17Z http://irep.iium.edu.my/73487/ Islamic structured investment: an example and critical analysis Mustaffa Kamil, Nazrol Kamil HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation This paper discusses in detail one example of an Islamic structured investment product. The said product is used as an illustration to highlight some issues deemed critical in the development of the wider Islamic finance space. The author humbly submits that convoluted structures, quite common in contemporary Islamic finance, are generally not healthy for the industry and its stakeholders. Opacity in financial dealings not only increases the cost of doing business, it makes risk assessment and management that much more challenging, to both transacting parties and regulators. Some additional perspectives related to the polemic on the practice of tawarruq are also offered. Finally, some thoughts on the widespread usage of wa’d as a somewhat indispensable tool in structuring contemporary Islamic financial instruments as well as the attitude towards risk inherent in structured products vis-à-vis a reasoned Islamic risk-return paradigm are deliberated upon. International Islamic University Malaysia 2019 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/73487/9/73487%20Islamic%20Structured%20Investment%20-Abstract.pdf application/pdf en http://irep.iium.edu.my/73487/10/73487%20Islamic%20Structured%20Investment.pdf Mustaffa Kamil, Nazrol Kamil (2019) Islamic structured investment: an example and critical analysis. In: 1st International Conference on Financial Markets 2019 (ICFM), 11th-12th July 2019, Kuala Lumpur. (Unpublished) |
| spellingShingle | HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation Mustaffa Kamil, Nazrol Kamil Islamic structured investment: an example and critical analysis |
| title | Islamic structured investment: an example and critical analysis |
| title_full | Islamic structured investment: an example and critical analysis |
| title_fullStr | Islamic structured investment: an example and critical analysis |
| title_full_unstemmed | Islamic structured investment: an example and critical analysis |
| title_short | Islamic structured investment: an example and critical analysis |
| title_sort | islamic structured investment: an example and critical analysis |
| topic | HG1501 Banking HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation |
| url | http://irep.iium.edu.my/73487/ http://irep.iium.edu.my/73487/9/73487%20Islamic%20Structured%20Investment%20-Abstract.pdf http://irep.iium.edu.my/73487/10/73487%20Islamic%20Structured%20Investment.pdf |