The Techniques of Islamic Financial Engineering and Their Role in Achieving Sustainability Development


  • Mashoor Ahmad Hamadneh


Financial innovations are considered as a dire need for financial institutions for the purposes of sustainability and competitiveness. Various financial innovations, such as credit cards, checks, Bai us Salami, lease-to-own, diminishing musharaka, and so forth for improving economic activity, increase profitability and the mutual interest between financers and founders. The problem of the study lies in the emergence of financial geometry that led to provide various innovations some of them commensurate with Islamic law while the majority of it do not commensurate with it. All of which have led specialists in financial Islamic to the necessity for accepting these innovations because of them might lead to crisis and financial problems. The justifications of the study embodied in the contribution from the researcher in the processes of connecting jurisprudence and economic studies due to their importance. The significance of the study stems from its ability open new doors for updating Islamic finance that the knowledge of the adoption determinants, the diffusion of financial innovations, finding a methodology based on scientific basis are considered an important issue for defining a mental perception for financial engineers and decision makers that help them in taking their decisions. The methodology of the study the researcher will adopt in this study the descriptive approach upon indicating financial innovations in terms of concept, characteristics, and emergence factors. Findings and Recommendations the researcher recommends the necessity to go deeper into the techniques of financial engineering related with risk management, modeling, and developing it in a manner consistent with Islamic bank activities and provide them with tools that enhance its growth and prosperity and its confidence worldwide. The necessity for Islamic banks by an enhance from supervisory authorities for establishing financial engineering techniques concerning the operation risks in Islamic banks.