Wednesday Academic Dialogue Subject-1433-01
Weekly Wednesday's Discussion
Islamic Approach to Risk
Dr. Sami Al-Swailem
Director of the Centre for the
Development of Islamic financial products
Islamic Development Bank (IDB), Jeddah, Saudi Arabia
Abstract. The paper discusses the nature and function of risk in economic activities from an Islamic perspective. It proposes a framework for evaluating degrees of risk in transactions, and accordingly to decide what type of gharar is involved. The framework is linked with the practices that led to the global financial crisis, and how Islamic principles could have minimized the chances of the crisis.