A new approach to product development in Islamic finance

Islamic Finance is a banking sector which caters to the Muslim population's banking needs by complying with the Islamic financial law. In this research some of the most prevalent financial products in Islamic Finance are surveyed and various forms of Islamic asset securitizations (Sukuks) are studied. Two issues of Islamic asset securitizations (Sukuks) are analyzed in detail. This analysis involves determining how well Sukuks serve the needs of Islamic Finance customers and also their shortcomings. In order to develop more customer-need centric financial products in Islamic Finance a new product development template is proposed. This template is a step-by-step process of developing Islamic financial products and is derived from the best practices of product development in the engineering domain. This methodology aims to formalize and improve the product development process in Islamic Finance. As an illustration of the proposed template, a new product is developed for Islamic Finance using this template. This example illustrates how religious restrictions in Islamic Finance dictate the form and substance of financial products during their development.

Department dc:contributor.department

System Design and Management Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Tahir, Muhammad Rehan

Advisor dc:contributor.advisor

• Stewart Myers and Robert C. Merton.

• System Design and Management Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/47878

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/47878