They said it would never happen. The Shariah scholars said that derivatives were inherently “unislamic” and had no place in Shariah-Compliant Finance.

Well, we guess “the truth changed.”

Financial Times has an article explaining how derivatives are creeping their way into Shariah Finance. No doubt, greed played a prominent role in this transformation…

The release of a 42 page master documentation for derivatives that comply with Shariah could have a far-reaching impact on Shariah-Compliant Finance and the wider financial world.

The International Islamic Financial Market (IIFM), a Bahrain-based Islamic capital markets body, and the International Swaps and Derivatives Association (ISDA) have for the past four years been working on standardized documentation for derivative instruments that comply with Shariah. They recently released the result of that work, a document which will serve to promote financial jihad substantially…

http://www.ft.com/cms/s/0/c5de9b26-5784-11df-b010-00144feab49a.html?nclick_check=1

 

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