Naẓarīyat al-Mukhāṭarah fī al-Iqtiṣād al-Islāmī Dirāsah Ta’ṣīlīyah Taṭbīqīyah (Risk Theory in Islamic Economics) By Adnan Abdullah Muhammad ‘Uwaidah (Herndon, VA: The International Institute of Islamic Thought, 2010, pbk. 351 pages.)

Abstract

“Risk” is one of the key concepts in understanding modern Islamic economics.
Its importance does not only stem from its place in the classical
fiqh, but also from its close relation to discussions in modern Islamic finance
about permissible ḥalāl (gain) and ribā (usury). Risk has been seen
as one of the key differences between ribā and non-ribā transactions and
conventional finance and Islamic finance mechanisms. While modern economics
aims to eliminate the risk entirely, principles of Islamic economics
aim to establish a balance among parties through risk sharing. Because
gaining money from money is ḥarām, the risk issue is more critical in debt-based finance. In this context, it’s a controversial issue among Islamic finance scholars that Islamic banks take several precautions to completely
eliminate the risk from their transactions – although Islamic finance is
known as a profit-loss-sharing system.
Adnan ‘Uwaidah’s book Risk Theory in Islamic Economics, which is
based on his doctoral dissertation, aims at theorizing risk in a legal and
economic framework and explaining its functions. The book, which claims
to be the first academic book about risk from the Islamic legal point of
view, consists of an introduction and six main chapters. The author has a PhD from the Department of Islamic Economics and Islamic Banking at
Yarmouk University in Jordan, which is one of the leading institutions in this field. He shows his mastery of the topic through his academic approach
to the issue, use of legal terminology, and a vast bibliography that includes
classical and modern resources ...