The wa'ad on the Street

Islamic finance finds itself at a crossroads. While it is essential to ensure new products are sharia (Islamic law)-compliant, it is also important not to allow the market to stagnate. The need to balance these different objectives is particularly evident in the Islamic derivatives arena, where there is a dichotomy of opinion between Islamic scholars on what instruments are permissible under sharia.

Wa'ad is a traditional Islamic product and the term occurs frequently in the Koran. While it can