CONTENTS -- Foreword Majid Dawood (CEO, Yasaar Limited, Dubai) -- 1. Resilience and Stability: Socioeconomic Response in Southeast Asia Angelo M. Venardos (Heritage Trust Group, Singapore) -- The Malaysian Response -- Financial Crisis and Islamic Finance -- Strategies to Strengthen the Resilience of the Islamic Financial System -- Conclusion -- 2. Legal and Regulatory Changes to Promote the Development of Islamic Banking and Finance in Singapore Arfat Selvam (Managing Director, Arfat Selvam Alliance LLC, Singapore) -- The Legal and Regulatory Framework -- Banking -- Financial Services -- The Regulatory Changes to Promote Islamic Banking and Finance -- Enhancing the Capability of Banks -- Increasing Liquidity in the Islamic Banking System -- Creation of Islamic Finance Products -- Sukuk -- Stamp Duty -- Income Tax -- Ijara Wa Iqtina -- Stamp Duty -- Income Tax -- Goods and Services Tax -- Murabaha -- Income Tax -- Goods and Services Tax -- Stamp Duty -- Mudaraba -- Double Tax Treaty Implications -- Tax Concessions for Islamic Financial Arrangements -- Incentivising Financial Institutions to Carry on Shariah-Compliant Financial Services -- Lending and Related Activities -- Funds Management and Investment Advisory Services -- Takaful (Islamic Insurance) and Re-takaful (Islamic Reinsurance) -- Other Changes that Benefit the Islamic Finance Industry -- Asset Management -- Increase in the Array of Funds' Vehicles -- Modernising the Trust Legislation -- Regulating the Trust Industry -- Abolishment of Estate Duty -- Shariah-Compliant Stock Indices -- Islamic Real Estate Investment Trusts (REITS) -- Financial and Economic Integration -- Conclusion -- 3. Brunei: A Niche Money Market for Offshore Islamic Finance Khairul A. Khairuddin (Director, HMR Trust Ltd, Brunei) and Sukor Ashak (Business Development Manager, HMR Trust Ltd, Brunei) -- Introduction.

The Brunei International Financial Centre (the BIFC) -- Shariah Financial Supervisory Board -- Islamic Banking and Finance Activities -- International Banking Legislation -- Islamic Insurance and Takaful Activities -- International Insurance and Takaful Activities -- Islamic Capital Market - Mutual Fund and Investment Activities -- The Securities Order 2001 (SO) -- Benefit and Incentives for Setting Up Fund and Investment-Related Activities in Brunei -- Training and Education - University Brunei Darussalam, Centre for Islamic Banking, Finance and Management -- Challenges -- 4. The Risk Profile of Mudaraba and Its Accounting Treatment Hajah Salma Latiff (Senior Lecturer, Universiti Brunei Darussalam, Brunei) -- Introduction -- Nature of Risks in Islamic Banks versus Conventional Banks -- The Structure of the Financial Statements of Islamic Banks -- A New Risk - Accounting Risk -- The Risk Profile of Mudaraba and Its Accounting Treatment -- Accounting Treatment for Impairment Losses -- Displaced Commercial Risk and Profit Equalisation Reserve Account -- Conclusion -- Bibliography -- 5. Legal and Regulatory Issues Concerning Islamic Finance's Development in Malaysia Dato Dr Nik Norzrul Thani Nik Hassan Thani (Chairman/Senior Partner, Zaid Ibrahim & Co, Malaysia) and Madzlan Hussain (Associate, Zaid Ibrahim & Co, Malaysia) -- Introduction -- Primary Legal Infrastructure -- IBF and ICM Products -- Incentives for Islamic Finance -- Regulatory Bodies -- Framework for the Future -- The MIFC Initiative Key Achievements -- Conclusions -- 6. Recent Legal and Regulatory Developments for Islamic Banking and Finance in Indonesia Hanim Hamzah (Partner, Zaid Ibrahim & Co -- and Senior Foreign Counsel, Roosdiono & Partners) -- Introduction -- Definitions -- Current Developments - Focused Efforts on Legal Certainty -- Increased Role by the Central Bank.

Master Plan for 2015 -- Uptake by Commercial Banks, Increase in Authoritative Bodies -- Clearer Scope of Work in Banking, Finance and the Capital Market -- The Indonesian Capital Market and Sukuk - the Current 'Star' -- New Players -- Common Problems - Lack of Qualified Shariah Scholars and 'Double Taxation' (recently amended) -- Conclusion - from Political Maneuver to 2015 Master Plan and Beyond -- 7. Making Sense of the Fast-Growing Islamic Finance Market Tadashi Maeda (Director-General, Japan Bank for International Cooperation) -- Introduction -- Malaysia Leading the Islamic Financial Market -- Overview of Islamic Finance -- A Move Toward International Standardisation of Islamic Financial Services -- UK Keeping Its Eye on Becoming a Gateway to Islamic Finance -- 8. The Growth of Islamic Finance in Southeast Asia: Regulatory Challenges and Opportunities for the United States Mercy A. Kuo (Director, Strategic Asia Program, The National Bureau of Asian Research, The Financial Center, USA) -- Introduction -- The Evolution and Characteristics of Islamic Finance in Southeast Asia -- Malaysia on the Move -- Singapore as a Financial Services Centre -- Islamic Finance Developments in the United States -- US Islamic Finance Consumer Market Composition -- Providers of Islamic Finance Products -- Challenges Facing US Regulators22 -- Opportunities and Outlook for the United States and Southeast Asia -- 9. An Introduction to the Laws and Practices of Islamic Trusts and the Distribution of a Trust upon Maturity Angelo M. Venardos (Heritage Trust Group, Singapore) and Aimi Zulhazmi Abdul Rashid (BIMB Trust Ltd, Labuan) -- Overview -- Types of Contract in Shariah -- Al-Tamlikat (Acquiring of Ownership) -- Al-Isqatat (Releases) -- Al-Itlaqat (Permissions) -- Al-Taqyidat (Restrictions) -- Al-Tauthiqat (Securities) -- Al-Ishtirak (Partnerships).

Al-Hifz (Safe Custody) -- Islamic Financing in a Contemporary Setting -- The Problem of Uncertainty (Gharar) -- Commercial Law -- Trust Concept in Islam -- Islamic Trust Development -- Islamic Trust Products -- Waqf -- Islamic Will -- Hibah -- Distribution of Islamic Trust -- Summary of Islamic Trust Products and Distribution -- 10. Lessons From Pakistan's Model Bilal Rasul (Registrar, Securities and Exchange Commission of Pakistan) -- Introduction: Pakistan's Capital Market and the Islamisation Efforts -- The Mudaraba Companies and Mudarabas: The Envisaged Concept -- Remodelling the Regulatory Environment for a Shariah- Compliant Financial System -- Islamic Finance and Crisis in the Conventional System -- Bibliography -- Documents Reviewed/Analysed for Blueprint of Regulations -- 11. Islamic Structured Products: Issues and Challenges Aznan Hasan (Professor, International Islamic University, Malaysia) -- Introduction -- Definition -- Advantages of Structured Products -- Types of Conventional Structured Products -- The Building Block in Devising Islamic Structured Products -- Basic Anatomy of Equity-Linked Islamic SPs -- Some Shariah Issues in Islamic SPs -- Amalgamation of Contract -- The Use of Index -- Issue of Leveraging and Mechanism to Leverage -- Islamic Option: Al-Wad vis-á-vis Urbun Concepts -- Urbun -- Al-Wad -- Al-Wakalah Bi Al-Istithmar vis-á-vis Mudaraba -- Conventional Option Contract -- Limitation on Withdrawal -- The Ceiling for Investment Profit Rate -- Currency Exchange Rate -- Hedging Using Conventional Hedging Mechanism -- Conclusion -- 12. Islamic Banks: Resilience and Stability - Not Immune from Crisis Shamshad Akhtar (Former Governer of the Reserve Bank of Pakistan and currently with Asian Development Bank) -- Background -- Growth and Steady Diversification Persist, but IF is not Immune from Global Crises.

Balance Sheet and Off-Balance Sheet (OBS) Risks for IBs -- Liquidity Management Risks -- Conclusion -- Glossary -- 13. Islamic Capital Markets: A Growing Area for Investments Michael Mahlknecht (Delta Hedge) -- Introduction -- Islamic Derivatives and Hedging -- Current Trends in Standardisation -- Innovative Instruments and Methods -- Islamic Structured Products -- Islamic Replication of Conventional Certificates -- Moving Forward: Structured Products Based on Khiyar -- Islamic Bonds: Sukuk Certificates -- A Low-Correlation Asset Class -- Structural Trends: The Path Toward Standardisation -- Islamic Fund Management -- Outperforming the Conventional Indices -- New Types of Islamic Funds -- A True Islamic Shorting Approach -- Quantitative Issues -- Outlook -- 14. Short-Selling Replication in Islamic Finance: Innovation and Debate in Malaysia and Beyond Ryan Calder (Department of Sociology, University of California-Berkeley, USA) -- Introduction -- What Is Short-Selling? -- Who Engages in Short-Selling, and Why? -- Problems with Conventional Short-Selling as Viewed from the Islamic Perspective -- Selling an Item Without Owning It -- Stock Borrowing and Lending (SBL) -- Entanglement with Riba -- Form versus Substance -- Efforts to Construct a Shariah-Compliant Short Sale -- The Market for An Islamic Alternative to Short-Selling: Islamic Hedge Funds and Islamic ETFs -- History of Efforts to Construct a Shariah-Compliant Short Sale -- Attempts to Construct a Shariah-Compliant Short Sale -- Conventional Short Sale -- Ijara-Based Structure -- Salam-Based Structure -- Wad-Based Structures -- Arbun-Based Structure -- Conclusion -- What is the Status of the Market? -- What should Potential Customers Keep in Mind? -- Where is the Market Headed? -- Is All This a Good Thing? -- References.