Now often people ask to recommend them some kind of business books or resources to study Islamic finance. So, in this post, we are talking about the best books in Islamic finance. These books encompass most of the important chapters and points regarding Islamic finance.
I don’t need to mention of course first and foremost as Muslims, the Holy Quran is the most important book of guidance. It contains laws, recommendations, prohibitions, and everything that we need to live this life. So, most of our rulings, ethos, and recommendations come from this book. But we are not talking today about this particular book. This deserves its own program. Today we are talking about other books that are very useful and I hope that you’ll find them useful as well.
So, the first book that I always recommend, one of the most important books is by Mufti Taqi Usmani. He is a very famous Muslim scholar. He was a jurist and the judge of the supreme court Pakistan. Most of you remember in the 90s when we had a famous case in Pakistan where the supreme court was deciding on the ruling regarding riba and mufti wrote a book about that subject which is very interesting even today. And I should include this book as well because it deals with such important topics of riba. At that time when bankers would say we believe riba is prohibited, just we don’t know what is riba? So, I feel that this same issue is repeating today. So mufti is a very famous scholar following these issues for a long time.
He also wrote the book The Historic Judgment of Riba. In this book, he discussed core reasons for the economic crisis, whether it’s a riba or speculations and things like that.
Introduction to Islamic Finance by Mufti Taqi Usmani is one of those books that deals with the core concepts of Islamic finance. It is easy to understand and deals with all of the transactions. It clearly explains what’s the difference between conventional banking and Islamic one. It explains when we’re dealing with the money-for-money transaction and generates some profit versus when we engage in the real economy and make money from engaging in buying and selling assets and other topics like that.
Shari’ah Standards by AAOIFI
The next book that I think every serious student of Islamic finance should take time to study is Sharia Standards by AAOIFI. Now AAOIFI is a standard-setting industry body, very well respected working with key scholars. It is dealing with a lot of issues when it comes to standardizing the rules and regulations for Islamic finance. Many countries choose voluntarily to follow these rules. Now this standard deals with many different issues. In fact, in every situation that you can come across in the finance industry such as trading in currency, credit cards, musharraka, Murabaha, loans, leases, zakat, wakuf, anything you can think of, almost topics are explained in this book.
And what I love about this book is that at the end of each standard which highlights each point very specifically, what to do what not to do, it gives you Islamic rules regarding those standards.
This particular book is a very interesting book. I find it fascinating. There are two volumes. It’s a beautifully written book that deals with so many issues in terms of finance from all schools of thought. And this is what I particularly find quite interesting that the author collected in almost 1000 plus pages on every little detail in terms of transactions, there are all kinds of opinions.
I find that this is a must-read, together with sharia standards from AAOIFI for any serious students of Islamic finance who want to explore principles that underpin Islamic finance. And this book is important because it explains new topics and new issues you need to understand.
Economic Concepts of Ibn Taymiyyah by Abdullah Azeem Islahi
This is again my favorite book that I find very useful on the daily basis. I use them as a reference. The author wrote this as a part of his Ph.D. dissertation and it’s a very interesting book dealing with the events and life of Ibn Taymiyyah who lived in very interesting times when people introduce all kinds of new ways of dealing with business and transactions and a lot of different questions were raised. And even Taymiyyah is a quite interesting character in terms of thinking. He was very innovative.
Some of the points analyzing books are so advanced and sophisticated that you can apply them easily in whatever you are analyzing today. Whether you’re talking about riba or market mechanisms and you know the other concept regarding the role of state and economy and money and things like that, this book will help you. His thinking was advanced. For instance, he is talking about how the states when they mint the coin should not do it for profit. Minting coins other than gold and silver should be for sake of the public good and not to debase the currency.
And so he talks about the fact that if the state is minting the coin they should pay from beitul mal in order to preserve the salary and money for the public good. These ideas are very useful when we look today at inflation. It gives answers to the crypto-related questions any other way we use money or make money privately or as a state. These points are very important to be understood so this is one of those books that I definitely recommend.
A book that I recommend to everyone. I find this book to be one of those books that is a result of some really serious hard thinking well thought. It covers really everything you need to know about Islamic finance, all the core concepts. And what I particularly love is just the way that all of these topics are approached from the introduction and objectives of the sharia and maqasid of sharia, understanding Islamic economics, main prohibitions, avoiding what is prohibited and unethical, and so on. And then going into the Islamic law of contract, business transactions, how things work, so mechanics of everything and then going more into commercial law modes of Financing. It has everything that you can think of.
I find this to be the most efficient way to teach someone the rules of Islamic finance. This book focuses on the contracts transactions and prohibitions and that opens the way for the student to understand why we do things that we do.
So these are the best Islamic finance books. I hope you get what you were searching for.