Book Review: Dilemmas and Challenges in Islamic Finance: Looking at Equity and Microfinance

Abstract

Islamic finance has witnessed a phenomenal growth during the past couple of decades. However, this remarkable growth has also been accompanied by some challenges and dilemmas. Islamic finance today is at the crossroads where resolving these issues is a prerequisite for its future sustained growth. The current book under review, edited by Yasushi Suzuki and Muhammad Dulal Miah, highlights and discusses some of the issues and dilemmas the Islamic finance industry is facing today. The book comprises of 11 Chapters divided into three parts. Part I deals with the dilemmas related to the prohibition of ribā and gharar. Part II elaborates on the challenges related to Islamic equity finance and microfinance and Part III is devoted to the discussion of the dilemmas and challenges related to the governance structure of Islamic finance. This article reviews and critically evaluates the aforementioned book. Islamic finance has witnessed a phenomenal growth during the past couple of decades. The remarkable growth has also been accompanied by some challenges and dilemmas. For instance, the concentration of murābaḥah in Islamic banks, lack of development of other branches of Islamic finance like Islamic venture capital and Islamic microfinance, and Islamic governance issues. This book, edited by Yasushi Suzuki and Muhammad Dulal Miah, highlights and discusses some of the issues and dilemmas Islamic finance industry is facing today. Islamic finance is at the crossroads where resolving these issues is a prerequisite for its future sustained growth. Yasushi Suzuki is a professor at Ritsumeikan Asia Pacific University, Japan and Dulal Miah teaches at the University of Nizwa, Oman. The primary research interests of Yasushi Suzuki seem to be financial fragility, institutional political economy, and theory of banking and economic rent in Asia as reflected by his past researches. This book is his maiden attempt on Islamic finance. The book comprises of 11 Chapters divided into three parts. Part I deals with the dilemmas related to the prohibition of ribā and gharar. Part II elaborates on the challenges related to Islamic equity finance and microfinance and Part III is devoted to the dis174 Tariq Aziz (Reviewer)