A Timeline of Islamic Finance
Islamic finance, rooted in Sharia principles, prohibits riba (interest) and encourages ethical investment. Its history is a blend of ancient commercial practices and evolving interpretations of Islamic law. Here’s a chronological overview:
Early Foundations (7th – 12th Centuries)
The seeds of Islamic finance were sown during the formative years of Islam. The Quranic injunction against riba provided the foundational ethical framework. Early Muslim merchants engaged in trade and commerce, developing innovative instruments like Mudarabah (profit-sharing) and Musharakah (joint venture) to facilitate business without interest. These partnerships distributed profits and losses equitably, aligning incentives and mitigating risk.
Hawala, an informal value transfer system, emerged as a reliable and secure method for transferring funds across geographical regions, predating modern banking systems. Its trust-based nature and avoidance of formal documentation made it particularly useful for trade and remittances.
Medieval Developments (13th – 18th Centuries)
During this period, Islamic legal scholars refined and codified principles of Islamic commercial law. They clarified the permissibility of specific financial contracts and elaborated on the conditions for their validity. The focus remained on promoting fair dealing, preventing exploitation, and ensuring compliance with Sharia. While formal institutions were limited, the principles of Islamic finance were practiced widely in trade networks across the Muslim world.
The Modern Revival (20th Century)
The modern revival of Islamic finance gained momentum in the mid-20th century, driven by a renewed interest in Islamic identity and a desire to create financial systems aligned with Sharia. The establishment of Mit Ghamr Savings Bank in Egypt in 1963, based on profit-sharing principles, marked a significant milestone. This institution demonstrated the viability of interest-free banking on a practical level.
The 1970s witnessed the formation of the Islamic Development Bank (IDB) in 1975, a multilateral development bank committed to financing projects in member countries in accordance with Islamic principles. This institution played a crucial role in promoting Islamic finance globally and supporting the development of Sharia-compliant financial products.
Contemporary Expansion (Late 20th Century – Present)
The late 20th and early 21st centuries have seen a rapid expansion of Islamic finance worldwide. Islamic banks, insurance companies (Takaful), and investment funds have proliferated, offering a wide range of Sharia-compliant products and services. Sukuk (Islamic bonds) have emerged as an important instrument for raising capital in accordance with Islamic principles.
Increasingly, governments and corporations are issuing Sukuk to finance infrastructure projects and other investments. The industry faces ongoing challenges, including standardization of Sharia interpretations, regulatory harmonization, and the need for greater innovation in product development. However, the continued growth and diversification of Islamic finance suggests a promising future as an alternative and ethical financial system.
613×803 financeislamique from www.researchgate.net 
2220×800 history islamic finance traces orgins modern form from www.islamicfinance.com 
962×972 islamic finance industry time mainstream from www.paymentscardsandmobile.com 
420×265 guide pratique de la finance islamique en from financeislamique.com 
1280×720 historical evolution islamic finance industry introduction from www.slideteam.net 
1280×720 historical presence islamic finance complete understanding fin ss from www.slideteam.net 
1088×761 finance islamique dm consulting from www.dmconsulting-france.com 
1280×720 meilleures diapositives sur la finance islamique gratuits from www.slideteam.net 
960×1400 finance islamique libislam from libislam.fr 
498×768 la finance islamique revue banque edition from edition.revue-banque.fr 
530×750 cours de finance islamique institut ishes from www.ishes.fr 
800×1110 finance islamique operations financieres autorisees prohibees vers from lacroiseedeschemins.ma 
458×421 corporate copyright la finance islamique from www.corporate.be 
1920×1280 la finance islamique une autre vision de la finance capexfi from www.capexfi.com 
2560×1920 comprendre la finance islamique principes fonctionnement finance from financeislamiquefrance.fr 
1000×600 lavenir appartient la finance islamique bilan from www.bilan.ch 
638×359 decouvrez la finance islamique from pt.slideshare.net 
474×474 finance islamique afriland bank from www.afrilandfirstbank.com 
1166×1288 la finance islamique gestion monetaire banquaire thinking from afterthinking.net 
728×546 finance islamique hassoune from fr.slideshare.net 
414×637 comprendre la finance islamiqueprincipes pratiques ethique cifie from www.cifie.fr 
1000×667 finance islamique cest quoi etrecomptablecom from www.etrecomptable.com 
1024×681 la revolution de la finance islamique comment la blockchain transforme from financeislamiquefrance.fr 
1024×682 finance islamique tendances horizons explorer from financeislamiquefrance.fr 
1248×701 la finance islamique nous aidait remettre notre finance sa from www.rtbf.be 
