Islamic Financial Instruments

ISLAMIC FINANCIAL INSTRUMENTS Dr Rodney Wilson* INTRODUCTION This paper aims to review recent developments in financial instruments internationally and examine the relevance of this experience for Islamic finance. What financial instruments have proved the most successful in terms of client appeal and efficiency in financial intermediation? Is there a trade-off between popularity and suitability for modem financial transactions? Does the need for a market in financial instruments to function effectively conflict with equity and distributional considerations? Is a finan- cial market with a "human face" possible, and can a moral dimension be introduced when designing new financial instruments? Clearly many