Explaining the Structure and Principles of Islamic Financial Engineering

Document Type : Paper

Authors
Ahmad Shabani 1
Abdolmajid Kajourinejad 2
1 Assistant Professor at Faculty of Islamic Education and Management, Imam Sadiq University, Tehran, Iran.
2 Student of Imam Sadegh University
10.30497/ifr.2011.1514
Abstract
Having a fundamental attitude to the issue of financial institutions, the present article maintains that it is necessary for an Islamic financial system to reconsider the issue of innovation, trying to produce an Islamic financial engineering to get rid of its present inactivity.
The term "financial engineering", as far as its specific sense is concerned, provides the tool for the development of an Islamic financial system, thus it is not restricted to the conventional meaning of the term, which refers to its financial derivations.
The first fundamental issue necessary to be taken into consideration on the way to produce an Islamic financial engineering, to which no specific attention has been paid so far, is to think of its structure. To this end, it is obligatory to consider the process of innovation and its restrictions and challenges on the one hand, and the opportunities and necessities on the other. The next important stage on the way to get to Islamic financial engineering is to pay attention to the principles related to the issue and its Islamic and religious foundations. As a matter of fact, fundamental policy of Islamic financial engineering can only be determined through the Islamic foundations, and their financial and scientific principles.
In the end, having recognized the current conditions of Islamic financial system, having explained the strategies and policies of such a system and having determined the ultimate goals and attitudes of the system, we will extract the central foundations and principles of Islamic financial engineering.
Keywords
financial engineering
Innovation
economic growth
balance
complete information
union
financial tools
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  • Receive Date 16 August 2011
  • Revise Date 30 August 2011
  • Accept Date 22 October 2011