A Socially Responsible Islamic Finance

This book explores how, through spirituality and the development of character, Islamic financial institutions and Muslim communities can integrate their businesses with contemporary social responsibility initiatives to produce positive social and environmental impact. From the looming environmental crisis to the divide between mainstream and extremist interpretations of Islam, the book addresses significant questions facing Muslim communities – and humanity – and demonstrates why Islam should sit ‘at the table’ with other faiths and ethical traditions discussing humanity’s great obstacles. Unlike existing literature, this work explores the intersections between classical Islamic ethics and spirituality, contemporary Islamic finance and economic markets, and select sustainability and impact initiatives (such as the Equator Principles and UN Principles of Responsible Investment) designed to make the worlds of business and finance responsible for the environments in which they operateand the communities that support them. Drawing on his years of experience in Islamic banking, Moghul addresses these applications in light of real-world practices and dilemmas, demonstrating how Islamic organizations and Muslim communities should embrace the broad range of stakeholders countenanced by the Shari’ah in conversations that affect them. By situating his exploration of Islamic finance in the light of the much larger critical issues of balance, justice, and moderation in Islamic praxis, Moghul creates an interdisciplinary book that will appeal to academics and researchers in economics, finance, business, government and policy, and law.

“Moghul’s book is critical reading, for he shows us it is possible to have peace within oneself and social prosperity. Moghul is never saccharine nor simplistic in his assessments and recommendations, some of which relate to complex financial systems which he explains with great clarity. At the heart of the book is the demonstration that true spirituality is not about shunning the world. Rather, it is about bringing the best part of ourselves to all our relationships, including our financial relationships.” (Ingrid Mattson, Huron University College, Canada)

“This book’s uniqueness is its identification of intersections among classical Islamic ethics and spirituality, contemporary Islamic finance, and global responsibility initiatives. Using an authentic Shari’ah-based argument, Moghul convincingly posits that by developing individual and organizational values, Islamic finance and Muslim communities can participate in producing positive impact through business, reach the objectives of the Shari’ah, and offer its principles to others. This is, and must be, the future direction of Islamic institutions and economies.” (Shaykh Yusuf T. DeLorenzo, Dow Jones Islamic Markets Indexes)

“Umar F. Moghul has superbly integrated the ideas of spirituality, morality and Islamic finance in this must-read book on Islamic finance. As long as Islamic finance encourages individual and collective character development consistent with Shari’ah, it can present a great opportunity to grace the world with the Islamic values of equitable and stable economic growth, inclusive and trustworthy social institutions, and responsible stewardship of the environment.” (Professor M. Kabir Hassan, University of New Orleans, USA)

Umar F. Moghul is a corporate and finance lawyer. For nearly fifteen years, he has assisted financial institutions, asset managers, and investors seeking to bring their businesses into compliance with Islamic law. He has designed a number of cutting edge Islamic investment vehicles and financial products in private equity and real estate. He presently teaches Islamic Law and Islamic Finance at University of Connecticut School of Law, USA; Islamic Business Ethics at Hartford Seminary, USA; and Halal Food Laws at Michigan State University College of Law, USA.