Derivatives in IslamicFinance

ArXiv ID: ssrn-1015615 “View on arXiv”

Authors: Unknown

Abstract

Despite their importance for financial sector development, derivatives are few and far between in countries where the compatibility of capital market transactio

Keywords: Derivatives, Emerging Markets, Capital Market Transparency, Financial Regulation, Derivatives

Complexity vs Empirical Score

• Math Complexity: 4.0/10
• Empirical Rigor: 3.0/10
• Quadrant: Philosophers
• Why: The paper presents conceptual valuation models and legal analysis on Shari’ah-compliant derivatives but lacks empirical backtesting, statistical metrics, or implementation-heavy data analysis.

  flowchart TD
    A["Research Goal: Assess derivative market development in emerging Islamic finance (EMIF)"] --> B["Methodology: Qualitative Case Study Analysis"]
    B --> C["Data/Inputs: Regulatory reports, global financial benchmarks, EMIF policy reviews"]
    C --> D["Computational Process: Comparative analysis of legal frameworks vs. international standards"]
    D --> E["Key Finding: Low derivative adoption due to regulatory ambiguity & religious compliance"]
    E --> F["Outcome: Proposal for standardized Shariah-compliant derivative contracts (e.g., IW'adah)"]