© 2019

Islamic Monetary Economics and Institutions

Theory and Practice

  • Muhamed Zulkhibri
  • Turkhan Ali Abdul Manap
  • Aishath Muneeza

Table of contents

  1. Front Matter
    Pages i-xxiii
  2. Muhamed Zulkhibri, Turkhan Ali Abdul Manap
    Pages 1-7
  3. Theoretical Foundation of Monetary Policy from Islamic Perspectives

  4. Monetary Policy, Policy Instruments and Financial Stability in Islamic Economy

  5. Back Matter
    Pages 193-201

About this book


This edited volume explores theoretical and empirical issues related to monetary economics and policy in the Islamic financial system. Derived from the Conference on Islamic Monetary Economics and Institutions: Theory and Practice 2017 held in Malé, Maldives, the enclosed papers highlights several option for authorities and regulatory bodies regarding monetary policy and regulation, as well as discussing how Islamic monetary policy effects growth, financial stability and resilience to shocks in practice. The inter-linkage between Islamic monetary policy and other markets are also explored. 

The subject of Islamic economics has gained considerable attention in the last four decades with the emergence of Islamic financial institutions around the world. This phenomenon has motivated economists to develop a comprehensive theoretical framework of modern monetary economics for Islamic economic system. An important characteristic of the Islamic economic system is the abolition of interest from the financial system. Islamic monetary economics is distinguished from conventional monetary economics due to the absence of interest. Therefore, under the Islamic economic system, monetary policy has to depend on other tools. In the early theoretical literature on Islamic monetary economics, many have discussed the role of money in Islamic economics system, while the number of empirical studies on Islamic monetary economics is a relatively new phenomenon. According to Islamic scholars, there are three main goals of Islamic monetary policy: a) economic well-being with full employment and optimum rate of economic growth; b) socioeconomic justice and equitable distribution of income and wealth and c) stability in the value of money. Hence, the Islamic monetary policy has several socioeconomic and ethical implications. 

Featuring regional case studies, this book serves as a valuable resource for academics, scholars, practitioners and policy makers in the areas of Islamic economics and finance.


Islamic monetary economics Islamic monetary policy Islamic finance Islamic banks Interest-free economy Macroeconomic model Waqf Zakat Fintech Participatory Finance Equity-Based Financial System

Editors and affiliations

  • Muhamed Zulkhibri
    • 1
  • Turkhan Ali Abdul Manap
    • 2
  • Aishath Muneeza
    • 3
  1. 1.Islamic Development BankIslamic Research and Training InstituteJeddahSaudi Arabia
  2. 2.Islamic Development BankIslamic Research and Training InstituteJeddahSaudi Arabia
  3. 3.Maldives Centre for Islamic FinanceHaveeree HinguMaldives

About the editors

Muhamed Zulkhibri is a Senior Economist at Islamic Research and Training Institute, Islamic Development Bank, Saudi Arabia with years of progressive experience in the Central Bank of Malaysia and policy-oriented institutions. He has authored extensively on monetary economics, financial institutions and markets, finance and economic development as well as Islamic economics and finance. He has published extensively in leading academic journal, industry report and the financial press. He has also lectured for under- and post-graduate program at the University of Nottingham, U.K and University Putra Malaysia. He earned a Ph.D in economics from University of Nottingham, United Kingdom.

Turkhan Ali is a Senior Research Economist at Islamic Research and Training Institute (IRTI), Islamic Development Bank, Kingdom of Saudi Arabia. Prior to joining IRTI, he was an Associate Professor of Economics in the Faculty of Economics and Management Sciences, where he taught various courses for Bachelor, Master and Ph.D. level. His research interests include macroeconomics, (Islamic) capital market, financial stability and stress testing for Islamic financial institutions. He has spoken and attended various national and international conference on economics and finance issues, while his research papers have appeared in numerous academic journals. He obtained his Ph.D. in economics from International Islamic University Malaysia.

Aishath Muneeza is the first female Deputy Minister of Ministry of Islamic Affairs and the first chairperson of the Hajj Pilgrimage Fund of Maldives. Currently, she is the chairperson of Maldives Centre for Islamic Finance. She structured the first corporate sukuk, sovereign private sukuk and Islamic Treasury instruments for the government of Maldives and she has played the key role in offering of Islamic finance products by more than eleven institutions. She also designed the first Islamic microfinance scheme offered in Maldives. She sits in Shariah advisory committees of financial institutions offering Islamic financial services such as Islamic hire purchase and takaful. She also holds the position of chairperson of three different in-house Shariah committees. She is the chairperson of Shariah Advisory Council of CMDA, the capital market regulatory authority of Maldives since 2011. She is the only registered Shariah Adviser for structuring capital market instruments in Maldives and she is a registered Shariah Advisor at the Securities Commission of Malaysia. The Islamic capital Market framework of Maldives was designed by her.

Bibliographic information