Takaful and Islamic Cooperative Finance

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Title: Takaful and Islamic Cooperative Finance: Challenges and Opportunities
  S. Nazim Ali, Shariq Nisar
 Business & Economics
 Edward Elgar Publishing Ltd
 29 July 2016
ISBN: 1785363352

About the book

Islamic finance distinguishes itself from conventional finance with its strong emphasis on the moral consequences of financial transactions; prohibiting interest, excessive uncertainty, and finance of harmful business. When it comes to risk mitigation, it is set apart by its advocacy for sharing of risk.

This authoritative book tracks the evolution of the Takaful industry over the course of the last four decades and makes a major attempt to highlight the importance of risk sharing through a discussion of various models of cooperation and critical analysis of their performance, including illuminating case studies and a critical assessment of the Islamic insurance model and the role of alternate financing mechanisms. Its high level discourse on Sharia compliance and its nuances places emphasis on the importance of solidarity, cooperation, mutuality and reciprocity.

Scholars and practitioners working in Islamic Finance will appreciate the context and nuance of this important book, and it will be essential reading for anyone interested in alternative forms of Sharia compliant cooperative finance.

The book is equally vital for academics and researchers interested in understanding various Takaful Models and their Sharia considerations.

Author Information

Dr. S. Nazim Ali joined Qatar Faculty of Islamic Studies in September 2014 as Full Research Professor and Director of the Center for Islamic Economics and Finance.

Prior to this he was the Executive Director (Acting) of the Islamic Legal Studies Program at Harvard Law School and Director of the Islamic Finance Project (IFP) at Harvard Law School since it was established in 1995.

For the last thirty years, he has focused his research efforts exclusively on the field of Islamic finance, giving particular attention to lines of inquiry that seek to examine and interrogate the frontiers of the Islamic finance sector, facilitate research within the sector itself and encourage dialogue among the sectors stakeholders as well as between the sector and various external discussants.

Dr. Ali has played a lead role in organizing several conferences, workshops and symposia in the field during his nearly two decades at Harvard, including the internationally renowned, biennial Harvard University Forum on Islamic Finance, the proceedings of which are serially compiled and published under his supervision; and the annual workshop at the London School of Economics which brings together the sector’s leading economists, shari‘a experts and practitioners in order to address key issues confronting the Islamic Finance sector.

He led the effort that resulted in the publication the world first academic software database covering the Islamic finance sector, the IFP DataBank (originally published on CD-ROM in 1997 and available online since 2003). Dr. Ali’s most recent publications include: Islamic Finance and Development, Building Bridges across Financial Communities: the Global Financial Crisis, Social Responsibility (Harvard Law School, 2014, 2012 respectively), and Shari‘a Compliant Microfinance (Routledge, 2012). He received his PhD from the University of Strathclyde, Glasgow, U.K.

Dr Shariq Nisar earned his PhD in Economics specializing in Islamic Finance from AMU, Aligarh. Today, he is among the senior most professionals of Islamic Finance in India. He is closely associated with both the academia as well as industry in the country. He has pioneered shariah screening of stocks in India and has been associated with some of the landmark shariah compliant products in the country. As a Visiting Faculty Dr Shariq teaches Islamic Finance at AMU, Aligarh, BSAR University Chennai, and Al Jamiya Al Islamiya, Kerala. He has structured Islamic finance courses for various universities and colleges and has been invited to speak on Islamic banking, finance, capital market and microfinance in various countries including USA, Malaysia, Indonesia, Sri Lanka, Bangladesh, Iran and UAE etc. Currently Dr Shariq is fulltime Director: Research and Operations of India’s premier shariah advisory firm TASIS.


Book Review

Zamir Iqbal, The World Bank Global Islamic Finance Development Center, Turkey

This volume is probably the first of its kind in which the topic of takaful often neglected by literature is dealt with in a comprehensive fashion by leading academics and practitioners. The strength of the volume stems from its discussion of the ideas of mutuality and cooperatives, legal and regulatory frameworks, and the potential for takaful in social finance with a view towards sustainable development. Professors Ali and Nisar deserve congratulations for making this important and significant contribution to the literature on takaful.

Rodney Wilson, Durham University and INCEIF, Kuala Lumpur

This book is a welcome addition to the literature on takaful, providing fresh perspectives, critical analysis and informative case studies which illustrate how Islamic insurance contributes to social finance in India and Indonesia. The principles of mutuality and solidarity are examined from different perspectives and the merits of a waqf-wakalah model are discussed. The legal and regulatory framework within which takaful operates is examined. The potential for shari ah-compliant cooperative financial services is assessed and a novel proposal is made for a lifetime annuity in family takaful. The standard of scholarship is impressive and Drs Nazim Ali and Shariq Nisar are to be congratulated in bringing together such a distinguished group of academics and professionals. The book is an essential purchase for libraries with collections in Islamic finance.