Islamic financial industry is growing rapidly. Markets are increasingly appreciating Islamic instruments, and more institutions are willing to provide Islamic services to their clients. Lately, the United Kingdom prime minister pledge to make London one of the world's "great capitals of Islamic finance" when he unveiled Treasury plans to create a £200m Islamic bond by early next year 2014 (The gardian oct-29-2013).
Risk is a challenge in both Islamic and conventional finance. On one hand “Nothing ventured nothing gained” is the first principle of investment. Further, total absence of risk distorts incentives and hence deteriorates economic efficiency. On the other hand, excessive risk hurdle investment and deter growth.
Islamic finance proposes an effective strategy: Minimizing and controlling risk by having it integrated and embedded in real activities. Risk becomes controlled by real economy and real activities are simulated to generate sufficient wealth to compensate risk. The strategy helps then creating value and minimizing risk at once.
Topics of this seminar are:
- Termonology in Islamic Finance
- State of risk volatilities of financial markets / Derivatives and risk
- Risk: The Islamic Approach
- Theory of Gharar / Risk and uncertainty
- Financial Engineering: An Islamic Perspective
Al-Suwailem, Sami. (2006), `Hedging in Islamic Finance.' Islamic Development Bank. King Fahad National Library Cataloguing-in-Publication Data.
Al-Suwailem, S. (2008) Islamic Economics in a Complex World: Explorations in Agent-based Simulation, IRTI, Saudi Arabia.
Al-Suwailem (2009) "Tenets of the Islamic Economic System." Encyclopedia of Islamic
Economics, edited by Abdelhamid Brahimi and Khurshid Ahmed, Volume II, UK, pp. 235-245.
Bekri. M, Kim. Y.S., Rachev. S.T. (2014). Tempered stable models for Islamic Finance asset management. International Journal of Islamic and Middle Eastern Finance and Management volume 7 no 1 issue.
Rachev. S. T., Stoyanov. S., Fabozzi, F. (2008), ''Advanced Stochastic Models, Risk Assessement, and Portfolio Optimization.'' John Willey and Sons, New Jersey.
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