Islamic Finance Instruments

The number of Muslims is estimated to be approximately 1.5 billion, constituting 21% of the world’s population www.adherents.com/Religions_By_Adherents.html. Hence the Muslim community represents an important source of capital, and many Muslims refuse to invest this capital in a manner that contravenes Islam. The aim of this study is to set forth the basic knowledge of Islamic finance, to analyse its major instruments such as musharaka, mudaraba, murabaha, ijara, istisna, and bay salam, and to illustrate possibilities for the integration of Islamic finance instruments into modern project finance structures with reference to the instruments of Austrian law.