Risk Management in Islamic Finance

An Analysis of Derivatives Instruments in Commodity Markets

This study addresses the derivatives instruments in Islamic finance and highlights their benefits and legal aspects. It also discusses the forward, futures and options contracts in commodity markets. Arguments both in favour of and against these instruments are addressed and several alternatives are examined as well.

Azzam added that we fully accept and rely on the first part of this principle, but
concerning its second part, he asserted that the prohibitive evidence pertaining to
civil and commercial transactions must not be anything less than decisive. This is
because the fundamental permissibility of such transactions is based on decisive
evidence, that is, the principle of ibāhah, and. * Al-Mawsu'ah al-Ilmiyyah wa al-'
Amaliyyah li al-Bunuk al-Islāmiyyah, Cairo, International Association of Islamic ...