INTRODUCTION TO THE ISLAMIC FINANCE IN PRACTICE (IFIP) SERIES OF BOOKS
Conception, Structure and Objectives
The Islamic Finance in Practice series of books has been conceived and designed by Michael J.T. McMillen for practitioners, from a wide range of disciplines, in the fields of Islamic finance, investments and banking. The books in the Islamic Finance in Practice series explore contemporary Islamic finance, investment and banking in accordance with the principles and precepts of Islamic shari`ah (the “Shari`ah”) from a transactional vantage and with particular emphasis on structuring financial transactions and products in contemporary markets. The focus is on transactional practices rather than jurisprudential theory or abstract study of Shari`ah principles and precepts. The primary methodology is the presentation and analysis of actual case studies. Virtually every example in the books in the Islamic Finance in Practice series is a case study of an actual transaction.
The paradigm is to work from a transactional base – from transactional fatawa (legal opinions), structures, issues, imperatives, constraints and influences – to an understanding of theory, principles and precepts. Thus, for example, a generic structure (such as the generic ijara (lease) structure) might be introduced as it is applied in real estate transactions. Consideration may then be given to variations that arise when the structure is applied to different assets or in different jurisdictions and or with variations tailored to different industries and assets. Later discussions might consider how that structure is applied in private equity transactions, banking transactions and takaful (insurance) transactions. Taking this approach means that the books in the Islamic Finance in Practice series consider a broad range of tax, legal (including regulatory) and other factors in addition to Shari'ah principles and precepts; and they focus on the interaction of those other factors with Shari'ah principles and precepts.
The substantive focus of the Islamic Finance in Practice series is on Islamic finance, broadly defined to include three different aspects of Islamic finance: finance transactions; investment transactions; and banking institutions and transactions. References to “Islamic finance”, without further qualification, are to all three aspects and references to “Islamic finance industries” are to all three of the Islamic finance, investment and banking industries. That convenience notwithstanding, these three industries are quite distinct and one should be ever conscious of how a given structure may vary from one such industry to another.
The hope and intention is that the Islamic Finance in Practice series will:
(i) introduce principles and concepts that should be considered in effecting Islamic finance, investment and banking transactions in different jurisdictions and industries and with respect to different assets;
(ii) generate sensitivity to issues that arise in different jurisdictions and industries and in different transactional environments; and
(iii) introduce techniques and methodologies for resolving these issues in a manner that accommodates all of the parties to the transaction and their respective risk appetites.
Since 1996, the Dr. McMillen’s law practice has focused predominantly on Islamic finance and investment transactions. The books in the Islamic Finance in Practice series draw heavily from his practice experiences and transactional knowledge. However, they are not derived solely from those experiences. Since 2006 Dr. McMillen has also taught courses in Islamic finance at, among other institutions, a prominent United States law school and a prominent United States business school. The books also draw from the materials used in those other courses and include the refinements incorporated into those materials over the years as a result of input from students and academicians. Finally, Dr. McMillen has published on Islamic finance, investment and banking topics, and the feedback obtained by the author as a result of those publications has been embodied in the Islamic Finance in Practice series.
The paradigm is to work from a transactional base – from transactional fatawa (legal opinions), structures, issues, imperatives, constraints and influences – to an understanding of theory, principles and precepts. Thus, for example, a generic structure (such as the generic ijara (lease) structure) might be introduced as it is applied in real estate transactions. Consideration may then be given to variations that arise when the structure is applied to different assets or in different jurisdictions and or with variations tailored to different industries and assets. Later discussions might consider how that structure is applied in private equity transactions, banking transactions and takaful (insurance) transactions. Taking this approach means that the books in the Islamic Finance in Practice series consider a broad range of tax, legal (including regulatory) and other factors in addition to Shari'ah principles and precepts; and they focus on the interaction of those other factors with Shari'ah principles and precepts.
The substantive focus of the Islamic Finance in Practice series is on Islamic finance, broadly defined to include three different aspects of Islamic finance: finance transactions; investment transactions; and banking institutions and transactions. References to “Islamic finance”, without further qualification, are to all three aspects and references to “Islamic finance industries” are to all three of the Islamic finance, investment and banking industries. That convenience notwithstanding, these three industries are quite distinct and one should be ever conscious of how a given structure may vary from one such industry to another.
The hope and intention is that the Islamic Finance in Practice series will:
(i) introduce principles and concepts that should be considered in effecting Islamic finance, investment and banking transactions in different jurisdictions and industries and with respect to different assets;
(ii) generate sensitivity to issues that arise in different jurisdictions and industries and in different transactional environments; and
(iii) introduce techniques and methodologies for resolving these issues in a manner that accommodates all of the parties to the transaction and their respective risk appetites.
Since 1996, the Dr. McMillen’s law practice has focused predominantly on Islamic finance and investment transactions. The books in the Islamic Finance in Practice series draw heavily from his practice experiences and transactional knowledge. However, they are not derived solely from those experiences. Since 2006 Dr. McMillen has also taught courses in Islamic finance at, among other institutions, a prominent United States law school and a prominent United States business school. The books also draw from the materials used in those other courses and include the refinements incorporated into those materials over the years as a result of input from students and academicians. Finally, Dr. McMillen has published on Islamic finance, investment and banking topics, and the feedback obtained by the author as a result of those publications has been embodied in the Islamic Finance in Practice series.
Transactional Graphics
The structures discussed in the books in the Islamic Finance in Practice series are frequently presented in graphic form, with the hope that visual imagery will enhance imprinting and understanding for most readers.
In many instances, the graphical figures depict sequential activity (such as sequential cash flows through the organizational structure).
In those instances, the sequences are numbered using a system of arrows and, associated with each arrow or set of arrows, numbers within small circles.
The text associated with each figure explains the activities and movements associated with the arrows in that figure, and ties the discussion to the encircled numbers.
The more complex figures showing sequential activities and movements have an associated table that summarizes the numerically designated activities and movements.
Additionally, many of the figures showing sequential activities or movements also have an abbreviated key within the figure itself.
An example of one such figure is set forth here as An Example: Figure 1.
In many instances, the graphical figures depict sequential activity (such as sequential cash flows through the organizational structure).
In those instances, the sequences are numbered using a system of arrows and, associated with each arrow or set of arrows, numbers within small circles.
The text associated with each figure explains the activities and movements associated with the arrows in that figure, and ties the discussion to the encircled numbers.
The more complex figures showing sequential activities and movements have an associated table that summarizes the numerically designated activities and movements.
Additionally, many of the figures showing sequential activities or movements also have an abbreviated key within the figure itself.
An example of one such figure is set forth here as An Example: Figure 1.
Individual Books in the Series
As presently conceived, the Islamic Finance in Practice series is comprised of the following books:
(a) an introductory textbook that provides an overview of a broad range of topics in Islamic finance, investment and banking (entitled Islamic Finance and the Shari`ah: The Dow Jones Fatwa and Permissible Variance as Studies in Letheanism and Legal Change, which was published in December 2013);
(b) a series of books that address specific transactional topics, structures and contracts, such as investment funds, leasing, sukuk, project and infrastructure finance, private equity investing, collateral security in Islamic finance transactions, Islamic banking, and other specific topics (the second book in the IFIP series is entitled The Lease (Ijara) in Islamic Finance); and
(c) a glossary of terms that are encountered by practitioners (entitled Islamic Finance in Practice: A Glossary).
Descriptions of the various books in the Islamic Finance in Practice series are contained at the tab IFIP Books and Articles.
Each of the books in the series is authored by Michael J.T. McMillen. Islamic Finance in Practice: A Glossary is co-authored with Sheikh Yusuf Talal DeLorenzo. Co-authors of any of the other books in the series will be noted in the descriptions of those individual books. See Authors and Team
(a) an introductory textbook that provides an overview of a broad range of topics in Islamic finance, investment and banking (entitled Islamic Finance and the Shari`ah: The Dow Jones Fatwa and Permissible Variance as Studies in Letheanism and Legal Change, which was published in December 2013);
(b) a series of books that address specific transactional topics, structures and contracts, such as investment funds, leasing, sukuk, project and infrastructure finance, private equity investing, collateral security in Islamic finance transactions, Islamic banking, and other specific topics (the second book in the IFIP series is entitled The Lease (Ijara) in Islamic Finance); and
(c) a glossary of terms that are encountered by practitioners (entitled Islamic Finance in Practice: A Glossary).
Descriptions of the various books in the Islamic Finance in Practice series are contained at the tab IFIP Books and Articles.
Each of the books in the series is authored by Michael J.T. McMillen. Islamic Finance in Practice: A Glossary is co-authored with Sheikh Yusuf Talal DeLorenzo. Co-authors of any of the other books in the series will be noted in the descriptions of those individual books. See Authors and Team
Book Release Dates
Three of the books in the Islamic Finance in Practice series are nearing release at this time. Those are:
Islamic Finance and the Shari'ah: The Dow Jones Fatwa and Permissible Variance as Studies in Letheanism and Legal Change: published December 26, 2013 and is available at Dr. McMillen's individualize web page for this book and at Amazon. A more detailed discussion of that book can be found at Discussion of Book - Islamic Finance and the Shari'ah. See also Dr. McMillen's author page on Amazon. Individual book discounts and bulk purchase discounts are available: see the captions Publisher's Discounts for IFIP Publications and Discounts for Bulk Purchases under the tab Bespoke Publications and Discounts. Please note that individual book discounts are only available through Dr. McMillen's individualize web page for this book and only when using the discount code set forth under, and on the terms described in, the tab Publisher's Discounts for IFIP Publications under the tab Bespoke Publications and Discounts.
The Lease (Ijara) in Islamic Finance: anticipated publication date of mid-2014
co-authored with Shaykh Yusuf Talal DeLorenzo, Islamic Finance in Practice: A Glossary.
For the moment, the descriptions of the Other Books in the Islamic Finance in Practice series are summary in nature, although drafts of those other books have already been prepared.
This web site will be updated further as the release dates of each of the books approach and occur.
Islamic Finance and the Shari'ah: The Dow Jones Fatwa and Permissible Variance as Studies in Letheanism and Legal Change: published December 26, 2013 and is available at Dr. McMillen's individualize web page for this book and at Amazon. A more detailed discussion of that book can be found at Discussion of Book - Islamic Finance and the Shari'ah. See also Dr. McMillen's author page on Amazon. Individual book discounts and bulk purchase discounts are available: see the captions Publisher's Discounts for IFIP Publications and Discounts for Bulk Purchases under the tab Bespoke Publications and Discounts. Please note that individual book discounts are only available through Dr. McMillen's individualize web page for this book and only when using the discount code set forth under, and on the terms described in, the tab Publisher's Discounts for IFIP Publications under the tab Bespoke Publications and Discounts.
The Lease (Ijara) in Islamic Finance: anticipated publication date of mid-2014
co-authored with Shaykh Yusuf Talal DeLorenzo, Islamic Finance in Practice: A Glossary.
For the moment, the descriptions of the Other Books in the Islamic Finance in Practice series are summary in nature, although drafts of those other books have already been prepared.
This web site will be updated further as the release dates of each of the books approach and occur.
