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Basic Terminology in Islamic Finance and Turkish Perspective

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Abstract

There is no absolute or completely Islamic financial system governed in any Muslim state in the world. However, there are many instruments of the Islamic Finance (IF) system employed by finance houses in Muslim-majority countries. These instruments, including joint venture (musharakah), Islamic bonds (sukuk), and Islamic insurance (takaful), have gained popularity particularly over the past 35 years in Muslim-populated countries. In particular, the market share of Islamic finance institutions in Turkey will be analyzed. This article also discusses literature views on the primary factors of the Western economic system that led to the recession as well as views on how the Islamic concept of financing can potentially eliminate unwholesome consequences. Factors undermining economic sustainability in Western dominated economies will be reviewed and discussed, referencing views of both Muslim scholars and economists in general. Basic terminology used in Islamic finance literature will also be explained.

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© 2014 Murat Ustaoğlu & Ahmet İncekara

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Yildiz, B. (2014). Basic Terminology in Islamic Finance and Turkish Perspective. In: Ustaoğlu, M., İncekara, A. (eds) Islamic Finance Alternatives for Emerging Economies: Empirical Evidence from Turkey. Palgrave Pivot, New York. https://doi.org/10.1057/9781137413307_4

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