Introduction and the Conceptual Features of Islamic Finance

Islamic finance is an alternative financing method with a particular value proposition defined by Islamic ethics, which provides substance, and Islamic law, which shapes the nature of its form. Islamic finance is articulated and operationalized through historically developed financial instruments or contracts as well as contemporary financial instruments developed through the innovative nature of Islamic financial engineering. Islamic legal compliancy is a requirement, and Islamic ethical norms should be considered when developing Islamic finance instruments, designing financial transactions, and forming business contracts.