This study provides a comparison to the economic features of different modes of Islamic financing. The objective of the monograph is two fold. Firstly, it aims at helping planners and policy makers interested in Islamizing the financial system of their economies understand the economic implications of various modes of financing and, thus, formulate policies that benefit from the application of these modes. Secondly, it aims at providing students and researchers, who are interested in understanding the Islamic economic system in general and the Islamic financial system in particular, with some insight into the features of various Islamic modes of financing, which will help them in furthering research in the area.

Islamic economic injunctions aim at facilitating human life on earth by providing enough flexibility in making economic decisions to suit everyone’s needs while still remaining within the boundaries of religious injunctions. The permissibility and availability of a variety of modes of financing with different economic implications as elaborated in this research clearly show the flexibility available to individuals as well as to society in the management of financial affairs.