Islamic finance: more expectations and less disappointment

Islamic finance: more expectations and less disappointment Released On Friday, 31 March 2017 Author(s) Fayaz Ahmad Lone , Siraj Ahmad DOI http://dx.doi.org/10.21511/imfi.14(1).2017.14 Article Info Volume 14 2017, Issue #1, pp. 134-141 TO CITE АНОТАЦІЯ 141 Views 424 Downloads Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License Islamic finance has faced a two-fold criticism from scholars; viz. constructive criticism and destructive criticism. Majority of the scholars criticize it with the intention to improve its overall development, but some scholars are more negative in their criticism. This paper proposes that Islamic banks (a component of Islamic finance) are not charitable institutions, but are the intermediary institutions that take care of investors’ expectations to keep the time value and return to their investments intact with the market fluctuations. The purpose of this paper is to provide better insight about Islamic finance so as to further improve this industry to achieve its long term goals and serve the society better. The paper also attempts to answer some of the common allegations imposed by scholars towards Islamic finance.