LikeNew Financial Alternatives for Muslims Go Mainstream
- A Muslim’s Guide to Investing and Personal Finance -
September 22 – Today Lightbulb Press released A Muslim’s Guide to Investing and Personal Finance by Virginia B. Morris in association with Monem A. Salam. The guide was developed to meet the growing need by banks, brokerages, asset managers, insurance and home finance companies, and other financial services organizations to provide Shariah-compliant products for Muslim customers who want to live their financial lives in accordance with their religious beliefs.
“The guide is an invaluable reference for Muslims who need to invest and make personal finance decisions while adhering to the Shariah, or Islamic law – often a challenging endeavor,” according to Salam, the Deputy Portfolio Manager for Saturna Capital and recipient of the “20 Rising Stars “ award from Institutional Investor News.
A Muslim’s Guide to Investing and Personal Finance describes the newest, as well as more established, Shariah-acceptable investment products and specialized financial transactions that have been developed to help Muslims navigate the financial realities of the modern world, including investing for retirement, buying a home, paying for college, and maintaining a savings account, as well as insuring personal assets.
“The purpose of the Guide is to acquaint Muslims and non-Muslims alike with the essentials of investing and personal finance from a uniquely Islamic perspective that is wholly consistent with the letter and spirit of Islamic law,” says Shaykh Yusuf Talal DeLorenzo, an internationally recognized scholar of Islamic Transactional Law and Chief Shariah Officer of Shariah Capital. “At the same time, the Guide does so in a thoughtful and user-friendly format that approaches the subject from a practical and individual perspective.’
The Guide distinguishes between financial products that are considered halal, or acceptable, such as Islamic equity funds, Sukuk (fixed income), and Takaful (insurance) and those that are considered haram, or unacceptable, because they violate the Shariah principles of riba, or paying of interest, or involve investing in companies with haram business activities, such as the manufacturing or marketing of alcohol, gambling, pork products and pornography. The Guide also explains how Shariah applies to individual finances, such as basic investing, home purchases, retirement savings, and the use of savings accounts and the “Islamic windows” that financial services are opening to offer Shariah-compliant financial products.
Says author Virginia Morris, “Placed in the context, and against the landscape of, the basics of traditional investing and personal finance, the Guide provides a roadmap for making financial decisions in accordance with Shariah, while explaining essentials such as risk and return, asset allocation, and diversification.”
The Guide also provides a look at some of the basic tenets of Islamic law as they relate to finance and investing, and how the guidelines for equitable financial relationships based on these laws informs the contracts, investment options, and transactions that are considered appropriate for Muslims. The six types of contracts that form the basis of today’s Islamic financial transactions are described in detail, including musharaka, madaraba, and ijara, among others.
Additional topics covered in the Guide include:
- Halal Retirement Planning
- Islamic Estate Planning
- Zakah
- Islamic Equity Funds
- Investing in Real Estate
- ETFs
The Guide
Lightbulb Press, September, 2008; ISBN: 978-1-933569-99-4. Available for bulk and retail sales directly through Lightbulb Press. Customized and branded versions are also available. 212-485-8800, sales@lightbulbpress.com. www.lightbulbpress.com
Lightbulb Press is a well-known publisher and developer of consumer-oriented financial content. All of the content is available in print, online, and in collateral materials including PowerPoint presentations and newsletters.
Media Contact: Mavis Morris
(212) 485-8822
www.lightbulbpress.com
Aa,
I should preface this comment by saying I have not read the publication. I am sure those writing it and encouraging these products and institutions have good intentions.
As an attorney who has done so called “shariah complaint” deals, sukuk, ijara, etc. working for a major US law firm, I would caution against what is being offered by many banks and institutions today. It is highly contentious whether many of these products are really Islamic. Many economists such as Prof. El Gamel and practitioners including myself see it as Shariah Arbitrage. They are normal everyday financial products structured to look and feel Islamic for a higher price compared to the conventional product.
From a legal perspective and from a consumer’s perspective one would caution against these products because they have never really been tested in the Courts. Therefore for the consumer it is difficult to predict what the legal outcome of something going wrong would be. From a financing perspective these products are more complicated to value. Although many of these products have the same names, in many or almost every deal the actual financial and legal structure is different. For the normal, average, individual investors, personally I feel uncomfortable for their position from a purely legal perspective, leaving the Shariah discussions aside. Large corporations and institutions, such as Air France who have done ijara financings for their aircraft, can hire hoards of sophisticated lawyers and bankers.
Assallama Aleikuma ,
As a muslm convert my investment portfolio has changed dramatically. Selling most of my stocks and bonds and going into cash. Now retired I have no source of income. Many mistakes have been made, now I just want secure returns, not wealth. My new muslim wife thinks I am being greedy, but I am not only thinking about myself. Besides , I saved money during my working years to have income now for shelter, food, medical care, and charity. Assallama Aleikum, Jazakakh allah.