The views expressed in this paper are solely those of the two authors and do not necessarily reflect the views of Amanie Business Solutions, its shareholders or its affiliates.
Equity-Based, Asset-Based and Asset-Backed Transactional Structures in Shari’a-Compliant Financing: Reflections on the Current Financial Crisis*
Article first published online: 16 DEC 2009
© 2009 The Economic Society of Australia
Economic Papers: A journal of applied economics and policy
Volume 28, Issue 3, pages 270–278, September 2009
How to Cite
Abdul Aziz, R. P. and Gintzburger, A.-S. (2009), Equity-Based, Asset-Based and Asset-Backed Transactional Structures in Shari’a-Compliant Financing: Reflections on the Current Financial Crisis. Economic Papers: A journal of applied economics and policy, 28: 270–278. doi: 10.1111/j.1759-3441.2009.00035.x
- Issue published online: 16 DEC 2009
- Article first published online: 16 DEC 2009
- home financing;
- Islamic finance;
- Islamic products;
- Shari'a-compliant finance
This paper presents interest-free equity-based, asset-based and asset-backed transactional structures endorsed by Shari’a-compliant finance. These structures could explain the potential and relative insulation, yet not immunity, of Islamic financial institutions from the financial crisis. Although Shari’a-compliant financing cannot solve the current financial crisis, the recovering market could consider incorporating some of the insulating principles underlying Shari’a-compliant financing and securitization products, as exemplified in the sample of Shari’a-compliant products in this paper, so as to offer better consumer protection.