List of Tables ..................................................................................................................................................................viii

List of Charts .................................................................................................................................................................... ix

List of Abbreviations..................................................................................................................................................... xi

Executive Summary........................................................................................................................................................ 1

1.

Introduction................................................................................................................................................................ 6

1.1.

Financial Architecture: Concept and Background ........................................................................ 8

1.2.

Aim, Objectives and Scope of the Study ............................................................................................ 9

1.3.

Methodology ...............................................................................................................................................10

1.3.1.

Sample Countries............................................................................................................................10

1.3.2.

Data Collection and Analysis......................................................................................................12

1.4.

Overview of the Study.............................................................................................................................12

2.

Financial Sector in OIC Member Countries & Islamic Finance: Global Status & Evaluation...14

2.1. Legal/Regulatory Environment in OIC Member Countries: A Brief Overview .............14

2.2. Financial Sector in OIC Member Countries: Size and Characteristics .......................................16

2.2.1. Relative Size of the Financial Sector ...............................................................................................17

2.2.2. Features of the Financial Sector of OIC MCs................................................................................19

2.3. Islamic Finance: Foundational Principles and Contracts ...............................................................24

2.3.1. Islamic Modes of Financing ................................................................................................................25

2.4. Islamic Finance: Evolution and International Infrastructure Institutions..............................26

2.4.1. Evolution of the Islamic Financial Sector .....................................................................................26

2.4.2. Supporting International Infrastructure Institutions .............................................................28

2.5. Global Status of Islamic Finance: An Overview...................................................................................32

2.5.1. Islamic Financial Institutions ............................................................................................................32

2.5.2. Islamic Financial Markets....................................................................................................................36

3.

Islamic Financial Architecture: Key Components and Framework...................................................43

3.1. Legal Infrastructure........................................................................................................................................43

3.1.1. Supporting Islamic Finance Laws ....................................................................................................43

3.1.2. Tax regimes and impact on Islamic finance ................................................................................44

3.1.3. Dispute Settlement/Conflict Resolution Framework and Institutions............................45

3.1.4. Bankruptcy and Resolution of Banks .............................................................................................45

3.2. Regulation and Supervision Framework...............................................................................................46

3.3.

Shariah

Governance Framework ..............................................................................................................48