The wa'ad on the Street
The Islamic concept of wa'ad has been used as a linchpin for a variety of structured products in recent years. Priya Uberoi, Rahul Chatterji and Dany Bidar consider the role of wa'ad in the evolution of Islamic derivatives, outlining the essential characteristics of the concept and some of the products in which it can be used
Islamic finance finds itself at a crossroads. While it is essential to ensure new products are sharia (Islamic law)-compliant, it is also important not to allow the market to stagnate. The need to balance these different objectives is particularly evident in the Islamic derivatives arena, where there is a dichotomy of opinion between Islamic scholars on what instruments are permissible under sharia.
Wa'ad is a traditional Islamic product and the term occurs frequently in the Koran. While it can
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