Potential Islamic Certificates for Resource Mobilization

The title is a research paper by Mohamed El-Hennawi published in “Islamic Economic Studies”, Vol. 1, No. 1, 1993,18 Pages. The following is an excerpt from its abstract.

Islamic banks and investment

Islamic banks, national and international, have recently come into existence to play an important intermediary role in pooling savings, especially from small investors, and channelling them into productive investments.

Islamic banks and the funds of the Islamic Ummah

This role has been constrained, to a great extent, by the absence of capital markets and financial instruments based on shari'ah. Islamic banks, therefore, have embarked on a serious effort to develop their own instruments for mobilizing the funds of the Islamic Ummah and using them to foster economic and social development of the ummah.

Objective of the paper

The Islamic Development Bank (IDB) and other Islamic banks have felt the need for a serious investigation, which would explore the possibilities for devising new financial instruments based on the shari'ah. The paper addresses this issue.