By Mr. Mahfoud DJEBBAR
Abstract
The past two decades have witnessed phenomenal growth of the Islamic financial services industry. The whole industry has been thriving at about 15 percent per annum. This development brings a challenge to the Islamic financial engineering (IFE), which is lagging behind its conventional counterpart. Therefore, in order to achieve its goals, two approaches are available, i.e. 1) replicating engineering and 2) innovative engineering. We also try to emphasize the innovative strategy since it guards the Islamic identity of different financial products and processes, and thereby, improves the creativity in the Islamic financial industry. The attempt also centers on sukukization (Islamic securitization), liquidity management, and risk management and hedging in the Islamic financial system, as well as Islamic capital markets, as a fertile field for IFE. Finally, the challenges facing IFE are also addressed.
Comments are closed.