Introduction to Islamic Economics and Finance

This book -- a collection of papers from a special issue on Islamic Economics and Finance (IEF) published in the Singapore Economic Review -- focuses on providing financial services to the growing Muslim population based on Islamic principles, particularly the prohibition of interest-based transactions. The IEF industry has seen significant growth over the last two decades, primarily driven by the growth of Islamic banking. However, it has faced various challenges including competition from traditional finance, regulatory and accounting issues, harmonization of practices, and the impact of global crises.The collection highlights inconsistent findings on the performance of Islamic financial institutions compared to conventional banks, and the need to explore new dimensions beyond just comparisons. Lastly, it also emphasizes the importance of expanding Islamic finance beyond banking into non-banking sectors and using technology to improve financial inclusion. In conclusion, there is a noteworthy dominance of Islamic banking (over 70% of IEF activities) and research needs on leveraging fintech, automation and blockchain to expand the scope of Islamic finance.The volume provides an overview of the 20 papers included in the special issue, which are divided into five themes: (1) Islamic finance and disclosure governance, (2) market volatility linkages in Organization of Islamic Cooperation nations and institutions, (3) financial inclusion, efficiency, and growth in Islamic banks, (4) risk metrics of novel Islamic finance instruments, and (5) contemporary research applications.