Chapter 10
Familiarizing Yourself with Islamic Financial Instruments
In This Chapter
Eyeing equity participation products
Focusing on asset-based financing instruments
Seeing what trade-based financing products are offered
Taking financial instruments out into the real world
Offers and advertisements for conventional banking products are on bank windows and billboards, in your mailbox and newspaper, and virtually everywhere online. Personal loans, credit cards, flexible loans for new graduates, mortgage loans, business loans with variable or fixed terms — by the look of it all, you’d have no clue that the Western banking industry seemed to be flirting with collapse just a few short years ago.
If you ever travel to the Persian Gulf region (Bahrain, Kuwait, Saudi Arabia, Jordan, Oman, Qatar, United Arab Emirates, or Morocco) or to Malaysia, you’ll see similar ads from Islamic banks touting products for sharia-compliant automobile purchases, mortgages, and more.
What’s the story? Why are banks so eager to give people their money? Commercial banks — both conventional and Islamic — must ...
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