Critical issues and challenges in Islamic economics and finance development.

Abstract

Islamic finance is one of the fastest growing fields in the world’s economy that offers great perspectives and dynamism; but in its structure, products and services it creates institutions that are offered by the conventional system as well. As it grows, it encounters new experiences, markets and clients—but also competitors that bring new challenges that this industry needs to identify and anticipate. This is especially the case in non-Islamic countries and regions, such as Europe and the Western world in general. Accordingly, in November 2014, the European Association for Islamic Economics, Banking and Finance and the School of Economics and Business in Sarajevo, at the University of Sarajevo, in collaboration with the Islamic Research and Training Institute (a member of the Islamic Development Bank), together with their esteemed partners, organized Sarajevo’s third Islamic Finance Conference entitled: “New Challenges For Islamic Economics and Finance Development”. This conference covered contemporary issues in Islamic finance and gathered various experts and practitioners from the field who presented their recent research. The special focus of the conference was to set the basis for further discussion and development of Islamic economics, banking and finance. The conference provided an opportunity both for leading experts and students to meet each other and exchange their knowledge and ideas. In this way, they contributed to the aim of establishing a stable network of academics and business people interested in this area. The peer-review team has selected the most relevant papers from the field of Islamic finance and the topics of the conference. There were many good papers, but only 25 were selected and presented at the conference. From these papers, the editorial board has selected ten that are most relevant and interesting for the broader public and further research in the field. The book covers a wide range of topics related to Islamic finance, from Islamic microfinance, the empowerment of women in Islamic economies, risk management, legal issues, sukuk, waqf, Islamic portfolio optimization, and some experiences in the implementation of Islamic finance. We would like to express our gratitude to Professor Mehmet Asutay from Durham University for his amazing efforts and deeds in supporting and promoting Islamic finance research and academic development in Bosnia. This book is just one product of his gracious support. Finally, we have to thank our young colleagues who have put much effort into the technical preparation of this book. We must first thank Admir Meskovic, without whom the project would not have been so successful. Also, we would like to thank our colleague from the USA, a student on the MA in Islamic Banking in Sarajevo, Omar B. Yunus, who helped in the editing of the text. Lastly, we would like to thank all our other colleagues, students, volunteers, partners and friends. Without their great support, this project would not have been realized at all.