Islam is a complete code of life. Not only does it make suggestions for personal life of its followers but it also directs its institutions. As modern banking is not allowed in Islamic world because of the practice of usury, therefore there is a great need to devise a new method for Islamic banking. This new method devised by Islamic scholars was the system of Islamic banking. In this book the main objectives of Islamic banking have been stated in detail.

Preface:
THE OBJECTIVE OF ISLAMIC BANKING

The objective of Islamic banking is to pool the Muslims' savings and direct them to investments, through Islamically approved methods, with a view to making a contribution to the comprehensive development plans within their communities. The Islamic Shari'ah was a miracle in its provisions relating to work, profit, expenditure, savings, investment, and development. These provisions in their totality demonstrate that working for a living is an act of worship and that expenditure is permitted on lawful (Halal) activities, but not on prohibited (Haram) ones. Expenditure on the Halal is tied to moderation, avoiding extravagance or lavishness, and this undoubtedly results in savings from the remaining part of the income after expenditure.

Although Islam prohibits the hoarding of money and preventing its circulation, as its utilization produces more commodities and services, an individual or group should invest any savings in such a way as to exclude anything Haram. Those who are responsible for the Muslims should prepare development plans and make the potential available for the fulfillment of such plans by directing the available resources, and most importantly the human resources, to spearhead the execution of such plans with experience and sincerity.

The Islamic Shari'ah is a complete system covering all aspects of human life, governing actions by way of permission or prohibition. It is capable of ensuring people's welfare, meeting their needs, and administering
justice amongst them; whereas other systems that are contrary to it neglect people's welfare, bring harm, cause corruption, and destabilize the scales of justice. Therefore the Muslim nation, and their jurisprudents and experts should regulate life, particularly the economic aspects, in accordance with the approach established by Allah, and derive rulings that keep pace with new developments according to this approach.

The subjects of the investment of savings and the forms of financial investment projects are the raison d'etre of Islamic banks and the scope of their business. I shall address this topic in this presentation by briefly reviewing Islamic investments, their properties, and types, and then I shall discuss the forms available to Islamic banks at the present time.

BRIEF CONTENTS

CHAPTER 1: ISLAMIC INVESTMENTS
PART I: Shari'ah Principles and Rules Governing Investment Contracts and Forms of Finance
PART II: Islamic Investment: Its Types and Properties in Comparison with a Riba Based Investment

CHAPTER 2: FORMS OF ISLAMIC FINANCE
PART I: Forms of Finance in Direct Investment
Subject: Murdbahah - Salam (Advance Sale) and Financial Salam
Subject: Al-Istisnd'
Subject: Ijdrah (Contract of Hire)
Subject: Mushdrakah (Partnership)

PART II: Forms of Mushdrakah Financing
Subject: Mudarabah
Subject: Muzara'ah
Subject: Musaqah
Subject: Mugharasah (Joint Ownership of Land and a Crop)
Glossary

Aims of the Assembly of Muslim Jurists In America (AMJA)

1. Issuing Islamic verdicts including those regarding new incidents and issues.
2. Establishing a plan for the preparation of Islamic research and studies pertaining to the affairs of Muslims residing in American society.
3. Analyzing and assessing all that is publicized about Islam and Islamic heritage by the media.
4. Cooperating with Islamic financial institutions to prepare research and studies and to respond to their requests for Islamic verdicts and consultation.
5. Conducting training courses for Imams and directors of Islamic centers to address various jurisprudential issues.
6. Supporting cooperation between other jurisprudential institutions and entities.
7. Examining naturalization issues.
8. Supporting the' activities of Islamic arbitration committees established by different Muslim communities in the West and preparing a reference of the jurisprudential rules and regulations to be utilized by them.
9. Establishing a fund for Zakah and social solidarity within the legal limits and permission of the appropriate authorities.

Some Special Features of the Assembly

1. Specialization: All the members are Ph.D. holders in Islamic Law.
2. Neutrality: It belongs to the Muslim Ummah, away from partisan and contemporary organized groups.
3. Comprehensiveness: It combines scholars who not only are expects in Islamic Divine Law or other specialties, but also have an understanding of the realities of current affairs.
4. Cohesiveness: It has a permanent committee for issuing verdicts comprising nine members who hold Ph.Ds in Islamic jurisprudence and legislation.
5. Connections: It has a committee of advisors for its verdicts, comprising eight of the major scholars of Islamic jurisprudence from the Ummah to whom the permanent committee refers as needed.
6. Moderation: Its Islamic verdicts mediate between extremism and neglect.

.