Abstract
<jats:p>This book provides an in-depth analysis of the foundational principles of Islamic finance and their relevance to addressing contemporary global economic challenges. Originally developed as a teaching note in 2011, the book has evolved into a substantially revised and expanded volume. It builds a systematic framework for understanding Islamic finance by integrating Sharīʿah principles, economic reasoning, and real‑world applications. This English edition reflects extensive updates to content, references, and examples, responding to contemporary developments such as global financial crises, post‑pandemic inflation, and rising concerns over debt sustainability. The book focuses primarily on the principles of Islamic finance, emphasizing the ethical and economic foundations that distinguish it from conventional financial systems. It explores key concepts such as the prohibition of ribā (usury), the role of zakāh and non‑profit activities, the treatment of gharar (excessive risk), and the essential linkage between finance and real economic activity. By doing so, the book highlights Islamic finance as a moral and economic framework aimed at promoting justice, stability, and shared prosperity. ‘Essentials of Islamic Finance’ is primarily aimed at economists, finance professionals, policymakers, regulators, and researchers who seek a structured and intellectually grounded understanding of Islamic finance. It also remains accessible to readers with an interest in Sharīʿah‑based economic systems, making it a valuable resource for academic instruction, policy dialogue, and professional reference.</jats:p>