Muhamed Zulkhibri - Islamic Finance, Risk-Sharing and Macroeconomic Stability

This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG

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The global crisis of 20072009 has clearly demonstrated the fallacies and inadequacies of the prevailing financial system and has made policymakers and regulators to rethinking the institutional framework for overseeing the stability of financial systems. Islamic finance underpinned by risk-sharing, real business activity and governance principles has offered itself as a possible alternative solution. Over the last decades, Islamic finance has experienced considerable expansion all over the world. It is promising for Islamic finance to become an integral component of the international financial system. The principles of Islamic economics and finance also promote the well-being of a society, where every individual and organization commits to justice, equity and freedom. Moreover, the risk-sharing principles in Islamic finance may contribute to improving macroeconomic stability. Islamic economics and finance offer an alternative form of financial contracts to support a stable environment for the economy.

This book provides original works and new insights covering the theoretical and empirical issues related to the Islamic financial system, risk-sharing mechanism and macroeconomic stability. In a nutshell, this book addresses some critical issues such as the ideal economic system to allocate economic resources from Islamic perspectives, the market and non-market mechanism and Islamic approach of distribution or redistribution of wealth for economic justice. Most of the contributed studies in this book have been presented and discussed in the IRTI-KAZGUU Research Workshop on Islamic Finance, Risk-sharing and Macroeconomic Stability: Issues and Challenges, which was jointly organized by Islamic Research and Training Institute, Islamic Development Bank and KAZGUU University in Astana, Kazakhstan.

We believe that the topic of Islamic Finance, Risk-Sharing and Macroeconomic Stability is a subject of great importance for policymakers, academics and practitioners. This book will contribute to contemporary Islamic finance debates, i.e. Islamic finance contribution towards sustainable development in Muslim and non-Muslim countries. Moreover, we hope this book will contribute to furthering the frontier of knowledge pertaining to Islamic economics and finance as well as providing new insights to the various stakeholders and policymakers around the world. We would like to take this opportunity to extend our deepest gratitude academic reviewers as well as those who have provided important contributions and rendered their support for making publication of this book a reality.