The concept of risk-sharing in financial and social contracts is one of the unique features of Islamic finance. Many theoretical studies generally claim superiority of an Islamic financial system based on pure equity and participatory modes of financing, while empirical studies provide mixed results. Studies and discussions are needed to fully understand how Islamic finance could contribute to the ongoing discussion of financial stability. Against this background, this book addresses various aspects of Islamic finance and the risk-sharing mechanism contributions to the overall macroeconomic and financial stability. Undoubtedly, the findings and recommendation from this book should be of great interest not only to future academic researchers in the field of macroeconomic stability and Islamic finance, but also to policy makers and regulators who are keen on drawing lessons from Islamic finance experiences to prevent similar crisis in the future.
Muhamed Zulkhibri is a Senior Economist at Islamic Research and Training Institute (IRTI), Islamic Development Bank (IDB), Kingdom of Saudi Arabia, with years of experience in the Central Bank of Malaysia and policy-oriented institutions. He has written extensively on monetary economics, financial institutions and markets, finance and economic development as well as Islamic economics and finance. He has published in leading academic journals, industry reports, and the financial press. He has also lectured for under- and post-graduate programs at the University of Nottingham, UK and University Putra, Malaysia. He earned a PhD in economics from University of Nottingham, UK.
Turkhan Ali Abdul Manap is a Senior Research Economist at Islamic Research and Training Institute (IRTI), Islamic Development Bank (IDB), Kingdom of Saudi Arabia. Prior to joining IRTI, he was an Associate Professor of Economics in the Faculty of Economics and Management Sciences, International Islamic University Malaysia (IIUM), where he taught various courses for Bachelor, Master and PhD levels. His research interests include macroeconomics, (Islamic) capital markets, financial stability, and stress testing for Islamic financial institutions. He has spoken and attended various national and international conferences on economics and finance issues and his research papers have appeared in numerous academic journals. He obtained his PhD in economics from IIUM, Malaysia.
