Author Archives: Humayon Dar

Derivatives and shari’a

Are derivatives acceptable in Islamic finance? Of course the answer is yes, but one must appreciate the difference between Islamic derivatives and their conventional counterparts. Furthermore, while the use of derivative contracts

Insurance and Shari’a

With the widespread availability of financing after the liberalisation of financial sector, insurance is fast becoming a necessity in Pakistan. Car financing, for example, by banks and other forms of lending by

Islamic interbank benchmark rate

On November 22, 2011, Thomson Reuters launched what it claims to be the world’s first Islamic finance benchmark rate, designed to provide an objective and dedicated indicator for the average expected return

Road to Islamic banking

With the success of almost full and successful conversion of National Commercial Bank (NCB) of Saudi Arabia, and relatively smaller but equally successful conversions of Middle East Bank into Emirates Islamic Bank,

Leasing in Islam

The baseline rule in shari’a is that only those assets that have an inherent usufruct can be leased with the condition that the leased asset is used only for shari’a compliant activities.