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Islamic finance

Starting in 2005, I have become a regular writer and presenter on Islamic finance. Some of my works are listed below.

The Royal Bank of Scotland disaster: its lessons for Islamic finance

The Financial Services Authority has published a 452 page report "The failure of the Royal Bank of Scotland." Islamic banks are exposed to many of the risks that brought down RBS.

The choice of applicable law for Islamic finance

Students of Islamic finance often wonder why so much of it takes place under English law. An interview with Global Islamic Finance Magazine allowed me to give a brief explanation.

Accounting and tax implications of sale and leaseback

This article first published in Islamic Finance News looks at the accounting under IFRS and AAOIFI accounting standards. It also briefly considers the tax issues that can arise.

Presentation on “Taxation of Islamic finance transactions” at ITIC MENA Tax Forum, Istanbul

The slides and addtional text explain why Islamic finance transactions often suffer a higher tax burden than equivalent conventional transactions. The coverage is not specific to any one country.

Accounting for sukuk under IFRS and AAOIFI accounting standards

My chapter from a new book which uses a hypothetical example to show how the two sets of accounting standards can give very different accounting results for the same transaction.

Video presentation on "Would Islamic finance have prevented the global financial crisis?"

In 2009, I spoke three times on this subject. The talk became a magazine article, but I have discovered that the video recording of the presentation given in Australia can be downloaded free from iTunes.

Liquidity management at UK Islamic banks

Islamic banks face greater liquidity management challenges than conventional banks. I cover the reasons and also review the liquidity management practices of the five UK Islamic banks.

A simple introduction to Islamic mortgages

There is much misunderstanding about Islamic mortgages. Accordingly, I have explained how they work in simple terms with diagrams and illustrative numbers.

Leaked US ambassador's report on UK Islamic finance scene.

The diplomatic cable released by WikiLeaks is a fair status summary with occasional errors, and quotes many people including myself.

What is AAOIFI’s Proper Accounting Standards Role?

A review of GCC Islamic banks shows that AAOIFI's accounting standards are only followed in Bahrain and Qatar. I conclude that AAOIFI should cease issuing its own accounting standards and instead collaborate with the IASB.

The tax treatment of Islamic finance in Western countries and Muslim majority countries

This is my chapter of the book "Euromoney Encyclopedia of Islamic Finance" edited by Aly Korshid and published by Euromoney Books. My goal in writing it was to explain the different approaches to the taxation of Islamic finance taken by the UK and some Muslim majority countries.

The role of the UK as an international centre for Islamic banking and finance

This is my chapter of the book "Islamic Investment Banking: Emerging Trends, Developments and Opportunities" edited by Sohail Jaffer and published by Euromoney Books. My goal was to explain the factors that have made the UK the leading centre for international Islamic finance outside Muslim majority countries.

Islamic financial products and their challenge to taxation systems

This is my chapter of the book "The Chancellor Guide to the Legal and Shari'a Aspects of Islamic Finance" edited by Humayon Dar. It explains why the UK would tax Islamic finance transactions more heavily than conventional finance, and discusses how UK law has been revised with the goal of parity of tax treatment.

The UK Islamic banking scene

This short article looks at the figures on the five UK Islamic banks as at 31 December 2009. Only one of them is a retail bank, and I explain why retail Islamic banking has not taken off in the UK.

Islamic finance in Australia

Australia is an important regional financial centre, and I believe it has significant competitive advantages if it chooses to compete regionally in international Islamic finance.

A review of "Islamic Commercial Law: An Analysis of Futures and Options" by Mohammed Hashim Kamali

This is my favourite book on Islamic finance, and the one I always recommend to people new to the subject who want to understand the religious background.

Why has retail Islamic banking not taken off in the UK?

I read a newspaper article which posed this question, and decided to set out my own thoughts.

How conventional insurance and takaful differ numerically

Many people who are new to Islamic finance often ask about the difference between takaful and conventional insurance. I have tried to explain this with the simplest possible example; two people who each have a house that is at risk from fire.

British Government Policy on Islamic Finance

I was asked to contribute an article on Islamic finance for the brochure being prepared by the Muslim Council of Britain's delegation to the World Islamic Economic Forum. As the audience at the WIEF would mostly come from Muslim majority countries, I decided to explain how the UK has been able to promote Islamic finance while maintaining a policy of religious neutrality.

The United Kingdom’s approach to the regulation of Islamic finance

The UK is globally recognised as the leading Western country for Islamic finance.  However from time to time proponents of Islamic finance ask me why the UK does not allow Islamic banks to offer “true” profit and loss sharing investment accounts. This item is a long answer to that short question.

Would Islamic finance have prevented the global financial crisis?

I gave a presentation on this subject to the Institute of Islamic Banking and Insurance in July 2009, and then wrote an article based on the presentation.

Are Islamic banks Islamic enough?

In one form or another, this question often crops up at conferences on Islamic finance. In my view, the answer depends upon the personal religious views of each Muslim, and I have therefore not sought to address it in any of my published writings on Islamic finance. However, the receipt by the Muslim Council of Britain of an open letter required me to address it when composing the response.

Should Financial Reporting for Islamic Finance be different?-video

This short video of 2 minutes and 17 seconds addresses the question of whether we need accounting standards for Islamic finance which are distinct from the accounting standards applicable to conventional finance. The short answer is no. The video is not very "bubbly"; apart from the subject being accounting, the other reason is that I was speaking without any notes or advance preparation, so I was literally making it up as I went along! It can be watched on the website of the Institute of Islamic Banking and Insurance.

Taxation of Islamic finance - video

The CFA Institute is a body engaged in financial training. I recorded for them a 25 minute video comprising a slide presentation with me talking on "Taxation of Islamic finance."