Islamic finance is growing at an astonishing rate and is now a global industry worth $1200 billion. This book explains the paradox of a system rooted in the medieval era thriving in the global economy. Coverage is exhaustively comprehensive, defining Islamic finance in its broadest sense to include banks, mutual funds, securities firms, and insurance (or takaful) companies. This second edition has been completely revised and updated to take into account the great changes and developments in the field in recent times. It includes the impact of the 9 / 11 and 7 /7 terrorist attacks on the industry, the new forms of interaction with Western financial institutions, the emergence of innovative products such as sukuk, and attempts by a broad range of financial centers - including Kuala Lumpur, London, Singapore, Bahrain, and Dubai - to become global hubs of Islam.