Book Review: Financial Innovation and Engineering in Islamic Finance

Abstract

The book Financial Innovation and Engineering in Islamic Finance by Samir Alamad (2017) serves as one of the primary academic references for understanding how Islamic principles can shape financial innovation that is ethical, stable, and just. Through historical, theoretical, and empirical analysis, Alamad presents a new conceptual framework for Shariah financial innovation that emphasizes the integration of conventional innovation theory and Shariah values. This article summarizes the main points of thought in the book, highlighting its theoretical and practical contributions to the development of the global Islamic finance industry. Samir Alamad successfully demonstrates that Shariah is not an obstacle to innovation, but rather an ethical and normative framework that guides the direction of innovation to ensure it remains just and sustainable. Thus, Islamic financial innovation has the potential to become a more stable and inclusive global financial model compared to the interest-based capitalist system.