A comprehensive guide to mitigating risk and fostering growthin the Islamic financial sectorIslamic finance, like conventional finance is a business offinancial intermediation. Its distinctive features relate tothe requirement that it abides by Shari'a rules that promotefairness of contracts and prevention of exploitation, sharing ofrisks and rewards, prohibition of interests, and tangible economicpurpose. Islamic finance should not fund activities considered"haram" or sinful. In Islamic Finance and EconomicDevelopment: Risk, Regulation, and Corporate Governance,authors Amr Mohamed El Tiby and Wafik M. Grais expound how thesedistinctive features bear on the opportunities and challengesfacing the Islamic finance industry'sdevelopment, risk management, regulation and corporategovernance.An experienced banker with various Middle East bankinginstitutions, notably as former Vice President at UAE UnionNational Bank and Mashreq bank, Dr. El Tiby offers aninformed perspective on corporate finance from within theIslamic finance industry. With a long experience in internationaldevelopment and finance, notably as former Director at the WorldBank and Founder and Chairman of a Cairo-based FinancialAdvisors company, Dr. Grais brings global financial experience onthe topics of financial systems assessments, corporate governance,Islamic finance, and public policy.* Covers the history and basics of Islamic finance, and providesinsight into current conditions and future landscape* Explores regulatory framework, including opportunities andchallenges for the industry's development andmainstreaming* Presents an approach to developing a systemic Shari'agovernance framework to govern operations in the Islamic financeindustry

Preface ixAcknowledgments xvAcronyms xviiAbout the Authors xxiPART ONE Emergence of Modern Islamic Finance 1CHAPTER 1 History and Core Principles of Islamic Finance 3CHAPTER 2 Islamic Finance: Opportunity for Egypt'sDevelopment 19PART TWO Managing Systemic Risks 51CHAPTER 3 Risks, Spillovers, and Distress 55CHAPTER 4 Coping with Crises: Policies, Institutions, andMarkets 67PART THREE Regulatory Challenges 93CHAPTER 5 The Dilemma of Tailor-Made versus MainstreamRegulation 95CHAPTER 6 Toward an Enabling Framework 107PART FOUR Corporate Governance 121CHAPTER 7 Financial Fiduciary Governance 123CHAPTER 8 Corporate Governance and Shari'a Compliance145CHAPTER 9 Toward a Systemic Shari'a Governance Framework181APPENDIX Islamic Finance: The International Landscape 205References 217Index 231